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Amazon buys healthcare company for $3.9 billion

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  • Amazon buys a healthcare company for $3.9 billion.
  • The online retailer said it will acquire One Medical for $18 per share in an all-cash transaction.
  • This is one of the largest acquisitions ever made by the company.

Amazon announced on Thursday the acquisition of the primary healthcare company One Medical in a transaction valued at $3.9 billion. It’s part of the company’s expansion into health services, according to The Associated Press.

The Seattle-based online retail giant said in a statement that it will acquire One Medical for $18 a share in an all-cash transaction. It is one of Amazon’s biggest acquisitions, following its purchase of supermarket chain Whole Foods for $13.7 billion in 2017 and Hollywood movie studio MGM for $8.5 billion earlier this year.

Amazon buys One Medical for $3.9 billion

Amazon buys a US medical services company for 3.9 billion

Photo: AP

In a statement, the firm, led by Andy Jassy, revealed the deal, which, when it is definitively closed, will be one of the largest acquisitions ever made by the company. Amazon said it’s reinforcing its commitment to the health sector, a goal it shares with other technology companies such as Microsoft and Apple, reported EFE.

One Medical, whose parent company is San Francisco-based 1Life Healthcare, Inc., is a membership-based service that offers its patients in-person medical care and telehealth visits with doctors. As of March, it had 767,000 members and 188 practices in 25 markets, according to its first-quarter earnings report. The same report indicated that the company had a net loss of $90.9 million.

What is the purchase of One Medical about?

amazon

Photo: Twitter

Neil Lindsay, Amazon’s senior vice president for healthcare, said the acquisition will reshape the healthcare «experience» in things like booking an appointment and going to the pharmacy. “We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” Lindsay said.

In 2020, Amazon launched an online pharmacy that allows customers to order medications and have them delivered to their homes in a couple of days. Last year it began offering its Amazon Care telemedicine program to employers across the United States. Shares of 1Life Healthcare rose 68% to $17.13 in morning trading. Filed As: Amazon buys One Medical

Amazon intends to provide a service to companies

amazon

Photo: Getty

One Medical has a network of medical clinics throughout the US, and one of Amazon’s goals is to use them to provide health services to companies for their workers.

“We think healthcare is high on the list of experiences that need to reinvent themselves. We see many opportunities to improve the quality of the experience and allow people to recover some of their valuable time,” said Neil Lindsay. Filed As: Amazon buys One Medical

Microsoft made a similar move

company makes huge purchase

Photo: Getty

In 2019, one of Amazon’s competitors, Microsoft, announced a «strategic collaboration» with the second largest pharmacy chain in the United States, Walgreens, to «transform» the retail market in the health sector, a move interpreted as a reaction to Amazon’s advances in the healthcare industry.

The previous year, Amazon had bought the pharmaceutical startup PillPack, which sank the listing of pharmacies such as Rite Aid, CVS and Walgreens itself, and announced an agreement with the JPMorgan Chase bank and the Berkshire Hathaway conglomerate to create a new company to take charge of health services for its employees, reported EFE. Filed As: Amazon buys One Medical

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