Online retail giant Amazon has reached an agreement to buy US primary healthcare provider One Medical for $3.49 billion (€3.423 million) in an all-cash deal .
The deal appears to spark an aggressive expansion into the health sector by Amazon, which introduced virtual care visits to Amazon employees in Seattle in 2019 before offering these services to other employers and other cities. under the Amazon Care brand. operated.
The e-commerce giant agreed on Wednesday to pay $18 for each medical stock, representing a 76.8% premium to the healthcare company’s closing price. In fact, the stock market gained momentum, trading with a 70% rise in shares of the medical company.
This acquisition is the latest example of the expansion of its presence in the healthcare sector. Amazon previously acquired PillPack, an online pharmacy, in 2018 and later launched its digital pharmacy in the United States. Additionally, Amazon has partnered with JPMorgan Chase and Berkshire Hathaway to provide better health care and insurance services at lower costs to workers and families at all three companies, and possibly other companies as well.
Amazon Health senior vice president Neil Lindsay said in a statement that Amazon wants to improve the way people book appointments and the experience of doctor visits.
According to the director, “health care tops the list of experiences that require reinvestment.” “We love to invent to make things easier, and we want to be one of the companies that helps dramatically improve the healthcare experience for years to come,” he said.
The acquired company operates a network of primary care practices and provides telemedicine services. One Medical promises its customers “24/7 access to virtual care”. The company operates in a dozen major U.S. markets and works with more than 8,000 companies to provide employee health benefits, according to its website.
In recent years, Amazon has expanded its online retail empire into entertainment, groceries, cloud computing and more. The acquisition of One Medical will be one of the largest in Amazon’s history. Amazon agreed to buy supermarket chain Whole Foods for $13.7 billion in 2017 and earlier this year struck an $8.5 billion deal to buy iconic Hollywood film studio MGM.
With the One Medical deal, Amazon will have access to physical health clinics and “connections to the hospital system,” Evercore ISI analyst Elizabeth Anderson said in a note Thursday.
San Francisco-based One Medical has seen an increase in demand for its services in recent years with the COVID-19 pandemic and the boom in the telehealth industry.
In its latest quarterly earnings report, One Medical said its service had a total of 767,000 customers, up 28% from a year ago. A medical examination was made public in January 2020.
Amazon Care itself acquired Hilton Worldwide Holdings Inc. in a deal announced last year. Until now, the retail giant had partnered with another company called Care Medical, focused on serving Amazon Care users, to conduct home visits in places like the Washington metro area. -Baltimore. Washington-Baltimore Metropolitan Area.
The deal is subject to approval by One Medical shareholders as well as regulators. It was not immediately clear whether the deal increased competition.