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Amazon to buy primary health care provider One Medical for roughly $3.9 billion

The deal deepens Amazon’s presence in health care, which company executives say is “high on the list of experiences that need reinvention.”
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Amazon is acquiring One Medical for $18 a share, an all-cash deal that values the primary health care provider at roughly $3.9 billion, the companies said Thursday.

The deal deepens Amazon’s presence in health care, which Neil Lindsay, senior vice president of Amazon Health Services, said is “high on the list of experiences that need reinvention.”

The e-commerce giant hopes to improve how people book appointments and the experience of being seen by a physician, Lindsay said in a statement.

“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” he said.

One Medical, which went public in 2020, operates a network of boutique primary care practices, and also offers a range of telemedicine services.

It has grown to oversee 188 medical offices in 25 markets, and counts 767,000 members, according to its latest quarterly results. One Medical reported a net loss of $90.9 million on revenue of $254.1 million in the first quarter.

“There is an immense opportunity to make the health care experience more accessible, affordable and even enjoyable for patients, providers, and payers,” One Medical CEO Amir Dan Rubin said in a statement.

Once the deal closes, Rubin will continue to run One Medical.

Shares of 1Life Healthcare, One Medical’s parent, opened roughly 66% higher Thursday, trading just below the purchase price. As of Wednesday’s close, prior to the announcement of the deal, shares of One Medical were trading at $10.18.

Amazon’s stock gained roughly 1% in early trading Thursday.

Amazon signaled a greater interest in the health care space when it purchased PillPack in 2018 for $750 million, using the acquisition to launch its own online pharmacy years later. The company has also ramped up its telehealth service, called Amazon Care, and it has sought to develop at-home medical diagnostics.