Amazon announced Thursday that it has reached an agreement to acquire One Medical, a network of primary care clinics, for a transaction worth $ 3.9 billion. This is a major step in the e-commerce giant’s plan to become a major player in the healthcare industry.
Based in San Francisco, One Medical operates a network of primary care providers that provide in-office and virtual healthcare services.
Amazon will buy the company for $ 18 per share in full cash transaction. It said in a statement.. This transaction requires approval from One Medical’s shareholders and regulators.
“We believe healthcare is at the top of the list of experiences that need to be reinvented,” Neil Lindsay, senior vice president of Amazon Health Services, said in a statement.
One Medical, the former Silicon Valley “unicorn”, a startup term that investors value over $ 1 billion, was launched in 2020 for $ 22.07 per share. After reaching its peak of $ 58.70 last year, its share price closed at $ 10.18 on Wednesday.
“We look forward to innovating and expanding access to quality healthcare services together,” said Amir Dan Rubin, Chief Executive Officer of One Medical. He will remain in his post after the contract is signed.
Amazon has recently made a series of moves into health care. In 2019, it reportedly spent about $ 1 billion on the startup of online pharmacy PillPack to win part of the $ 560 billion prescription drug industry.
