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Amazon to acquire One Medical for nearly $4 billion

by John R. Fischer, Senior Reporter | July 22, 2022
Business Affairs Health IT Telemedicine
Amazon will acquire One Medical for nearly $4 billion.
Amazon will acquire One Medical, a membership-based primary care service, through a definitive merger agreement valued at approximately $3.9 billion.

One Medical provides patients with 24/7 access to affordable care through virtual and digital care services, as well as in-person visits. Demand for its services surged during the pandemic and it today has 767,000 members, up 28% year-over-year, according to its most recent quarterly earnings report.

Acquiring it will give Amazon access to physical health clinics and "payer and hospital system relationships," Evercore ISI analyst Elizabeth Anderson told CNN Business in a note.

Neil Lindsay, SVP of Amazon Health Services, said in a statement that the company’s “human-centered and technology-powered approach” will allow Amazon to “help more people get better care, when and how they need it.”

Based in San Francisco, One Medical has operations in 25 states. Amazon will complete the deal for $18 per share in an all-cash transaction that includes One Medical’s net debt.

Insider Intelligence healthcare analyst Rajiv Leventhal says the deal is a sign of Amazon’s expansion in the primary and retail healthcare and telehealth markets, and that it may bundle One Medical subscriptions with its Amazon Care virtual care offerings, which it already sells to enterprise clients in the primary care market.

He adds that the deal will put it on par with competitors like CVS Health and Walgreens. “It also wouldn't be a surprise to see Amazon's next healthcare play to boost its Amazon Pharmacy with a pharmaceutical acquisition — and beyond that, buying an insurance company as CVS Health did with Aetna.”

Amir Dan Rubin will continue as CEO of One Medical following the completion of the acquisition. “There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers,” he said.

The transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval.

Amazon declined to answer HCB News’ questions about the acquisition, and referred it to the press release.

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