One Medical is a primary care provider that offers both telehealth services and options to meet doctors in person at its 182 offices, scattered across 25 markets in the United States.
Reuters
Reporting by Manas Mishra in Bengaluru and Jeffrey Dastin in New York Editing by David Goodman
July 21, 2022
An Amazon logo is pictured at a logistics centre in Mannheim, Germany, September 17, 2019. REUTERS/Ralph Orlowski/File Photo
July 21 (Reuters) — Amazon.com Inc (AMZN.O) on Thursday said it would buy One Medical (ONEM.O) for $3.49 billion in an all-cash transaction.
The deal heralds a dramatic expansion of the online retailer’s push into healthcare, having piloted virtual care visits for Amazon employees in Seattle in 2019 before offering such services to other employers and in other cities under the Amazon Care brand.
“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services.
“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services.
In One Medical, Amazon is aiming to acquire a company with brand-name customers such as Airbnb Inc (ABNB.O) and Alphabet Inc’s (GOOGL.O) Google, according to its website.
In One Medical, Amazon is aiming to acquire a company with brand-name customers such as Airbnb Inc (ABNB.O) and Alphabet Inc’s (GOOGL.O) Google, according to its website.
One Medical is a primary care provider that offers both telehealth services and options to meet doctors in person at its 182 offices, scattered across 25 markets in the United States.
One Medical is a primary care provider that offers both telehealth services and options to meet doctors in person at its 182 offices, scattered across 25 markets in the United States.
The e-commerce giant agreed to pay $18 for each share of One Medical, representing a premium of 76.8% relative to the healthcare firm’s closing price on Wednesday. One Medical shares were trading at $16.95.
The deal is valued at $3.9 billion including One Medical’s net debt.
The news knocked down the stock of telehealth leader Teladoc Health Inc (TDOC.N) by 8% in morning trading. Shares of drugstore retailers CVS Health (CVS.N) and Walgreens Boots Alliance fell over 2%.
Amazon Care itself picked up Hilton Worldwide Holdings Inc (HLT.N) as a key customer in a deal announced last year. read more
Until now, the retailing giant has partnered with a different company called Care Medical, focused on serving Amazon Care users, to enable house calls in places such as the Washington-Baltimore metro area.
There is a minimal anti-trust risk with the deal, given Amazon’s limited healthcare footprint, Evercore ISI analyst Elizabeth Anderson said in a note.
The deal is subject to regulatory approval and the green light from One Medical shareholders.
Originally published at https://www.reuters.com on July 21, 2022.
Neil Lindsay, senior vice president of Amazon Health Services.
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