Amazon buys One Medical for $3.9 billion as it expands into healthcare

One Medical is a membership-based primary care service that promises customers “7×7 access to virtual care.” The company operates in dozens of major US markets, according to its website, and works with more than 8,000 companies to deliver One Medical’s health benefits to its employees.

In a statement Thursday announcing the acquisition, Neil Lindsey, Amazon’s vice president of health services, said the e-commerce giant believes “health care is high on the list of experiences that need to be reinvented.” Lindsey added that Amazon hopes to be one of the companies “that will greatly help improve the healthcare experience over the next several years.”

The acquisition is the latest example of the tech giant’s expansion into healthcare. Amazon acquired PillPack, an online pharmacy, in 2018 and later launched its own digital pharmacy in the United States. Separately, Amazon has partnered with JP Morgan Chase and Berkshire Hathaway in an effort to provide better health care and insurance services at lower cost to workers and families at the three companies, and possibly others as well. That effort, called Haven, was halted last year.

Amazon has expanded its empire in recent years from online retail to the entertainment sector, the grocery industry and more, increasing its reach in the lives of consumers in the process. The company’s rapid expansion has also raised alarms for antitrust regulators.

The acquisition of One Medical will be one of the largest acquisitions in Amazon history. Amazon agreed to buy grocery chain Whole Foods in 2017 for $13.7 billion, and earlier this year closed an $8.5 billion deal to buy popular Hollywood film studio MGM.

Headquartered in San Francisco, One Medical has seen an increase in demand for its services in recent years amid the Covid-19 pandemic and the rise of the telehealth sector. In its most recent quarterly earnings report, One Medical said total membership reached 767,000, up 28% year over year. One Medical was launched to the public in January 2020.
arrow for 1 Live Healthcare (ONEME), the parent company of One Medical, jumped more than 65% in early trading Thursday after the announcement. Amazon stock opened relatively flat Thursday. (Shares of CVS Health Corp and Walgreens Boots Alliance fell slightly Thursday morning after the news.)

The transaction is still subject to approval by One Medical’s shareholders and regulators.

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