Amazon.com Inc. on Thursday reached an agreement to pay $3.49 billion to acquire primary care provider One Medical, boosting the e-commerce giant’s virtual care capabilities and giving it access to select physical doctor’s clinics. After testing out virtual care visits for Amazon employees in Seattle in 2019, the all-cash purchase signals a significant extension of Amazon’s healthcare aspirations. These services will now be made available to other employers and in more locations under the Amazon Care brand.
Additionally, it acquired the online pharmacy Pill Pack in 2018 and collaborated with Teladoc Health to provide Alexa-based virtual doctor visits.
One Medical And Amazon To Create A New Healthcare Line
Amazon will purchase 1 Medical, a business whose clients include Alphabet Inc.’s Google and Airbnb Inc. According to its website, 1 Medical has more than 125 medical locations spread out across the United States and provides both telemedicine services and opportunities to visit doctors in person. 2007 saw the establishment of the San Francisco-based business. According to sources familiar with the situation, Carlyle Group Inc., which had invested $350 million for a minority share in 1 Medical in 2018 would sell its holding as part of Amazon’s acquisition.
According to Citi analyst Daniel Grosslight, the purchase makes sense since the “blending of virtual and in-person treatment is essential to both One Medical and Amazon Care’s strategy.”
One Medical shareholders will receive $18 per share from Amazon, a premium of 76.8% over the company’s most recent closing. Shares of One Medical were being traded at $17.27. The total acquisition value, including One Medical’s net debt, is $3.9 billion.
Shares of Walgreens Boots Alliance, CVS Health, and Teladoc, a pioneer in telemedicine, all fell between 1 and 2 percent in response to the news.
Doctor visits at home have been made possible in some regions through a partnership between Amazon and Care Medical, a business that caters to Amazon Care members.
Analysts stated that while Amazon’s minimal healthcare business should reduce antitrust concerns, vulnerabilities still exist.
