Amazon.com, Inc. (NASDAQ:AMZN) has announced plans to buy primary care technology provider One Medical for $3.9 billion. In the press release, the e-commerce giant described the publicly traded healthcare company as “a human-centered, technology-powered U.S. primary care organization on a mission to make quality healthcare more affordable, accessible, and enjoyable through a seamless combination of in-person, digital, and virtual care services.”
Amazon Agrees To Acquire One Medical
Through its technology, One Medical combines in-person office visits with virtual and digital services. The company’s technology allows patients to easily schedule appointments, request prescription renewals from their doctors and access their medical records.
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In a statement, Neil Lindsay, senior vice president of Amazon Health Services, said they see healthcare as "high on the list of experiences that need reinvention." He highlighted the issues some patients face with booking appointments and then sometimes waiting months to be seen, taking time off work, driving to the clinic and looking for a parking spot, and waiting in both the waiting and exam rooms for an extended period, followed by a "rushed few minutes with a doctor."
Based in San Francisco, One Medical is a primary care clinic operator that offers both in-person visits and online resources, including a mobile app. Patients must sign up for a membership to use the company's services.
Details On The Acquisition
Under the terms of the deal, Amazon will pay $18 a share for One Medical, giving it an enterprise value of around $3.9 billion. At this point, the e-commerce giant isn't revealing much about its plans for the acquisition, like whether it will remain independent or if it will be integrated into Amazon's broader healthcare strategy.
TechCrunch noted that Amazon has been pushing further and further into the healthcare field, having launched an online pharmacy and building out an on-demand platform to provide healthcare services. However, the kinds of services One Medical provides appear to fit well into Amazon's strategy so far.
Shares of 1life Healthcare, the administrative and managerial services company for One Medical, surged immediately after the announcement, jumping 70% to open Thursday's trading session at around $17. Amazon shares were little changed by the news.
