Amazon.com Inc. announced it would buy primary-care company One Medical for $18 a share, the latest move by the e-commerce giant to muscle into the healthcare market.
The all-cash transaction is valued at approximately $3.9 billion, including One Medical’s net debt, Amazon said in a statement Thursday.
One Medical, whose parent is called 1Life Healthcare Inc., operates 182 medical offices in 25 markets in the US. Customers pay a subscription fee for access to its physicians and round-the-clock digital health services.
“We think healthcare is high on the list of experiences that need reinvention,” said Neil Lindsay, the senior vice president leading Amazon’s healthcare push.
Amazon in recent years has launched an online drug store, following its acquisition of mail-order pharmacy PillPack Inc., and started a primary-care clinic for its employees and some other companies, among other health-focused initiatives.
Bloomberg reported earlier this month that One Medical was weighing its options after attracting takeover interest, including from CVS Health Corp.
Amazon shares rose 1.3% in early-morning trading Thursday, and 1Life Healthcare increased 2.6%.
Completion of the transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval. On completion, Chief Executive Officer Amir Dan Rubin will continue to run One Medical.
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