Amazon Agrees To Buy Healthcare Provider One Medical For US$3.49 Billion

Share post:

Amazon has agreed to buy the U.S. healthcare provider One Medical for $3.49 billion. Amazon agreed to pay US$18 for each share owned by One Medical.

Under the deal, Carlyle Group, which paid US$350 million for a minority stake in One Medical in 2018, will give up its position as part of Amazon’s takeover.

The deal cements Amazon’s desire to become a force to be reckoned with in the healthcare industry, and the company has taken several recent steps in this direction. This includes the provision of virtual care visits for its Seattle employees in 2019 before offering services to other employers under the Amazon Care brand. Amazon also bought online pharmacy PillPack in 2018.

While the One Medical deal is the company’s first in-and-mortar doctors’ office, recent financial results show that Amazon is taking over a loss-making company with 767,000 members and corporate clients such as Airbnb and Google, which offer its services as a benefit to employees.

According to Citi analyst Daniel Grosslight, the acquisition makes sense because “the “blending of virtual and in-person care is core to both One Medical and Amazon Care’s strategy.”

The sources for this piece include an article in Reuters.

SUBSCRIBE NOW

Related articles

VMWare revenue drops by $600 million but Broadcom assures investors growth plan is on track

In its first full quarter under Broadcom's ownership, VMware's revenue fell by $600 million, dropping to $2.7 billion....

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

 Google executives face employee concerns amid profitsurge

At a recent all-hands meeting, Google employees voiced significant concerns regarding morale, cost-cutting measures, and the impact of...

Spotify CEO confesses to “rough times after layoffs” – stock price rises

In December, Spotify CEO Daniel Ek announced the largest round of layoffs in the company's history, cutting 1,500...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways