Amazon is not a name one is likely to expect in the healthcare industry. This is something the e-commerce giant has been actively trying to change, and it is driving acquisitions alongside its own online pharmacy in pursuit of this goal. That goal is getting a big time push today, with Amazon announcing the acquisition of One Medical, for an astounding $3.9Bn.
According to the terms of the agreement, Amazon will be acquiring the primary-care company for $18 per share, a deal that values One Medical at nearly $3.9 billion. Should the deal be sealed successfully, the acquisition will be the third-biggest by Amazon, just behind the behemoth’s purchases of Whole Foods Market and Metro-Goldwyn-Mayer. It will also make One Medical the latest healthcare company in Amazon’s arsenal, which already includes PillPack.
For now, the completion of the deal is still subject to customary closing conditions, including the approval by One Medical’s shareholders and regulatory approval. Once it is completed, One Medical will retain Amir Dan Rubin as its CEO, though it is unknown whether it will continue to operate as an independent company or be a part of Amazon’s healthcare business.
Described by Amazon as a “human-centered, technology-powered national primary care organization on a mission to make quality care more affordable, accessible, and enjoyable,” One Medical seems to be a suitable business to be acquired by the titan. It clocked $254.1 million in revenue in the first quarter of the year as well.
With 188 medical offices in 25 markets, the company offers its services both to consumers (who subscribe to gain access to its digital health services and physicians) and organizations. The services offered by it include helping consumers to schedule appointments easily, telemedicine, renewing their subscriptions, accessing up-to-date health records, and advancing health outcomes.
“We think health care is high on the list of experiences that need reinvention. Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy – we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days,” said Neil Lindsay, SVP of Amazon Health Services.