Amazon purchased primary health care provider One Medical for roughly $3.9 billion

July 22, 2022: -On Thursday, the companies said that Amazon is taking One Medical for $18 a share, an all-cash deal that values the primary health care provider at almost $3.9 billion.

The deal worsens Amazon’s presence in health care, which Neil Lindsay, senior vice president of Amazon Health Services, mentioned is “high on the list of the experiences that need reinvention.”

The e-commerce giant is hoping to enhance how people book appointments and the experience of being experienced by a physician, Lindsay said in a statement.

“We invent to make what should be easy, and we want to be one of the companies that helps improve the healthcare experience over the coming few years,” he said.

One Medical, which is going public in 2020, operates a network of boutique primary care practices and offers a range of telemedicine services.

According to its latest quarterly results, it has grown to oversee 188 medical offices in 25 markets and counts 767,000 members. One Medical reports a net loss of $90.9 million on revenue of $254.1 million in the first quarter.

“There is a chance to make the health care experience more accessible, affordable, and even for patients, providers, and payers,” One Medical CEO Amir Dan Rubin said in a statement. Once the deal closes, Rubin will keep running One Medical.

Shares of 1Life Healthcare, One Medical’s parent, opened roughly 66% higher Thursday, trading just less than the purchase price. As of Wednesday’s close, before the deal’s announcement, One Medical share were trading at $10.18.

Amazon’s stock gained roughly 1% in early trading Thursday.

On Wednesday, Amazon signaled a greater interest in the health care space when it purchased PillPack for $750 million, using the acquisition to launch its online pharmacy years later. The company has ramped up its telehealth service, Amazon Care, and sought to develop at-home medical diagnostics.