Amazon Just Acquired One Medical for Nearly $4 Billion — the latest move by the e-commerce giant to increase its presence in the healthcare sector, following the purchase of PillPack in 2018 and the creation of Amazon Care the following year.
Listed on Nasdaq and based in San Francisco, One Medical operates a network of primary care offices and a telemedicine service. The company has 188 clinics in 25 markets and over 700,000 users.
One Medical operates on a subscription model and has a relevant part of its revenue coming from B2B: companies offer One Medical services to their employees.
In the first quarter, it made $252 million and lost $90 million.
Amazon is paying a premium of nearly 80% from yesterday’s close. With the announcement, the stock is already up 69% this morning, approaching the value of the transaction.
Amazon’s vice president for healthcare, Neil Lindsay, said the industry is “at the top of the list of experiences that need to be reinvented.”
“We love inventing to make what should be easy even easier, and we want to be one of the companies that help dramatically improve the healthcare experience for years to come,” he said.
The purchase of One Medical is Amazon’s biggest move to date in the healthcare sector and the third-biggest acquisition in the company’s history, behind Whole Foods ($13.4bn) and MGM ($8,000). 5 bi).
In the healthcare industry, Amazon bought PillPack for $750 million in 2018, using the drug delivery business to launch its digital pharmacy a few years later.
The company also launched Amazon Care, a telemedicine service, and has been developing in-home medical diagnostics solutions.
One Medical CEO Amir Dan Rubin will continue to lead the business, which was founded in 2007 by Tom Lee. Lee left the helm of the company in 2017, three years before the IPO.