Amazon has announced that it has entered into a definitive merger agreement with One Medical. The latter firm is described as “technology-powered” which basically means it offers in-person, digital, and virtual care services making access to healthcare convenient for more people.
Under the agreement, Amazon will acquire One Medical for $18 per share, which works out to $3.9 billion in all (including One Medical’s net debt). The acquisition will be an all-cash transaction and will have to get the approval of One Medical’s shareholders and have regulatory approval. The health firm’s CEO, Amir Dan Rubin, will stay on as CEO after the deal goes through.
Commenting on the acquisition, Amir Dan Rubin said:
“The opportunity to transform health care and improve outcomes by combining One Medical’s human-centered 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 health care 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.”
Amazon’s interest in healthcare stretches back several years. In February, it announced the expansion of Amazon Care, a telehealth service. The acquisition of One Medical will help it to bolster this offering in particular.