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Amazon Agrees to Acquire Primary Care Chain One Medical for $3.9B

One Medical often opens its primary care clinics near office-heavy areas of major metro areas to be convenient to where patients work. This location, for example, is in the Buckhead neighborhood of Atlanta, which is home to many businesses, skyscrapers and high-income residents.

SEATTLE AND SAN FRANCISCO — Seattle-based tech giant Amazon (NASDAQ: AMZN) has agreed to acquire San Francisco-based primary medical care chain One Medical (NASDAQ: ONEM) for $3.9 billion. One Medical operates over 180 doctor’s offices throughout major metro areas in the United States. 

Approximately 767,000 people have memberships to One Medical, paying a $200 annual subscription fee for the service. The company also mixes in-person, digital and virtual care services, with the intent of being convenient to where people already work, shop and live.

Amazon has been pushing its way into healthcare in recent years, and the One Medical acquisition represents its biggest push into the sector to date, particularly regarding the physical real estate.

“We think healthcare is high on the list of experiences that need reinvention,” says Neil Lindsay, senior vice president of Amazon Health Services. “Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.” 

“The opportunity to transform healthcare 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,” adds Amir Dan Rubin, One Medical CEO.

Amazon will pay $18 per share to acquire One Medical in an all-cash transaction. The $3.9 billion total includes assumption of One Medical’s debt. ONEM stock closed at $10.18 per share on Wednesday, July 20, the day before the announcement. The following day, it spiked to close at $17.25 per share, just below Amazon’s purchase price.

Completion of the transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval. Amir Dan Rubin will remain as CEO of One Medical following the deal.

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