Amazon will acquire One Medical under a definitive merger agreement valued at approximately $3.9bn, accelerating the company’s expansion into the healthcare sector.
The online retail giant will acquire One Medical for $18 per share in an all-cash transaction, making it the company’s largest-ever acquisition. Completion is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval. On completion, Amir Dan Rubin will remain chief executive officer of One Medical.
The US primary care organisation is a membership-based service offering virtual care and in-person visits using a subscription fee model, making it easier for patients to schedule appointments, renew prescriptions and access up-to-date health records. One Medical works with more than 8,000 companies to provide its health benefits to employees.
Neil Lindsay, senior vice president of Amazon Health Services, said in a statement that the merger would lead to the “reinvention” of the healthcare experience.
He continued: “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.”
The acquisition is not Amazon’s first step into the healthcare sector. In 2018, the company bought online pharmacy PillPack for $750m before opening its own online drug store, allowing customers to order medication or prescription refills to be delivered to their door.
Earlier this year, the company also began offering its Amazon Care telemedicine programme to employers nationwide. Originally launched in 2019 as a pilot programme for employees at the company’s Seattle headquarters, the programme provides virtual care visits, as well as free telehealth consultations and in-person visits for a fee.
Amir Dan Rubin said: “The opportunity to transform health care and improve outcomes by combining One Medical’s human-centred and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention and willingness to invest in the long term is so exciting.
“There is an immense opportunity to make the healthcare experience more accessible, affordable and even enjoyable for patients, providers and payers. We look forward to innovating and expanding access to quality healthcare services, together.”