American eCommerce giant Amazon has agreed to buy primary care provider One Medical for $3.9 billion, marking a major expansion of the company’s move into health care.
The primary care provider will join other Amazon health care offerings like its online pharmacy, telehealth services, and nascent diagnostics business.
According to the statement, Amazon agreed to pay $18 for each share of One Medical, a premium of 76.8 percent to the healthcare firm’s last close. One Medical share is trading at $17.12.
The acquisition is subject to approval from One Medical shareholders and other closing conditions. One Medical CEO Mr. Amir Dan Rubin will remain at the helm after the deal is complete.
According to Mr.Neil Lindsay, senior vice president of Amazon Health Services, “Amazon believes that healthcare is high on the list of experiences that need reinvention. We love inventing to make what should be easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years.”
“Together with One Medical’s human-centered and technology-powered approach to healthcare, we believe we can and will help more people get better care, when and how they need it,” Mr. Lindsay further added.
Over the last few years, Amazon has made a notable push into the healthcare market. It launched an app-based health service for its employees in 2019, which it later opened up to more companies.
Further, Amazon has a pharmacy service that delivers prescription drugs to Prime users within two days. The company also opened Amazon Pharmacy two years after it bought online pharmacy PillPack. Last year, it announced a version of Alexa for healthcare providers.