Amazon closes its $3.9B acquisition of primary care provider One Medical
Amazon closes its $3.9B acquisition of primary care provider One Medical Maria Deutscher
Amazon.com Inc. today completed its acquisition of 1Life Healthcare Inc., a primary healthcare provider that operates under the name One Medical and runs more than 125 clinics in the U.S.
The acquisition, which was originally announced last July, values One Medical at $3.9 billion. That’s 78% higher than the value of the company’s stock the day before the deal was announced.
“If you fast forward 10 years from now, people are not going to believe how primary care was administered,” said Amazon Chief Executive Officer Andy Jassy. “Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade. Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone.”
One Medical launched in 2007 with one facility and over the years expanded its clinic network to more than 125 locations. The company continued to grow at a rapid clip in the months leading up its acquisition by Amazon. One Medical’s revenue more than doubled year-over-year, to $120.4 million, in the fiscal quarter that immediately preceded the purchase.
One Medical had more than 790,000 members as of last June. The company’s primary care clinics offer same-day and next-day appointments, as well as on-site lab services. A mobile app enables One Medical members to access virtual care services along with related features, such as tools for accessing medical records and refilling prescriptions.
To mark the completion of the acquisition, Amazon today lowered the price of One Medical memberships for new customers. On a limited time basis, new customers can purchase memberships at a price of $144 for the first year instead of the standard $199 annual fee.
The completion of the acquisition comes after the U.S. Federal Trade Commission opted not to challenge the deal. On Tuesday, Politico reported that the FTC had decided against a legal challenge following an eight-month probe into the transaction. However, the agency reportedly plans to continue its investigation and hasn’t ruled out the possibility of filing an antitrust lawsuit in the future.
“We now set our sights on delivering even further positive impacts for consumers, employers, care teams, and health networks, as we join Amazon with its long-term orientation, history of invention, and passion for reimagining a better future,” said One Medical CEO Amir Dan Rubin.
The deal will support Amazon’s effort to expand its presence in the healthcare sector. In 2018, the company acquired online pharmacy startup PillPack Inc. for $753 million. More recently, Amazon introduced a service called RxPass that enables Prime members to purchase generic medications for a fixed monthly fee.