Topline
Amazon plans to purchase One Medical dad or mum firm 1Life Healthcare—a membership-based healthcare firm that gives main care providers—in a deal valued at $3.9 billion, after shares of the well being agency plunged greater than 70% over the previous yr, and as Amazon takes one other step into the healthcare area greater than two years after the Covid-19 pandemic started.
Staff work in an Amazon achievement middle.
Key Info
Amazon will purchase One Medical—which affords digital well being care by an software in addition to in-person workplaces in additional than a dozen U.S. cities, in line with the corporate’s website—together with all of One Medical’s web debt, for $18 a share in money, the e-commerce big said.
Shares of 1Life surged 68% Thursday morning following the information, after closing at $10.18 a share Wednesday, giving the corporate a worth of practically $2 billion.
Amazon mentioned it noticed “a lot of alternative” to “enhance the standard” of the well being care expertise and “give folks again helpful time of their days,” whereas One Medical mentioned it noticed “immense” alternatives to “make the well being care expertise extra accessible, inexpensive, and even satisfying.”
One Medical will preserve its CEO, Amir Dan Rubin, as soon as the deal is full, Amazon mentioned.
Key Background
One Medical went public in 2020 at $14 a share. Shares of the corporate—whose members pay a $199 annual charge—rose to $54 in early 2021, giving the corporate a market cap of over $6 billion on the time. The inventory has plummeted since. Reports emerged two weeks in the past that the well being care firm was contemplating a takeover, after a number of corporations, together with CVS, expressed curiosity. The acquisition marks the most recent transfer from Amazon into the healthcare trade, after launching its first telemedicine program a yr into the pandemic with its app Amazon Care. Amazon is one among a number of corporations which have forayed into the healthcare area lately, in addition to Apple, Google and Microsoft.
Tangent
Congress launched an investigation into One Medical’s Covid-19 vaccination practices in March 2021 after a number of retailers, together with Forbes, reported the corporate didn’t implement state vaccination pointers by permitting healthcare employees to get vaccinated with out proof of identification, successfully permitting folks to leap the road throughout a time when vaccines had been scarce.
Additional Studying
One Medical Let Folks Leap The Line For Covid-19 Vaccines (Forbes)
Amazon to Buy One Medical for $3.9 Billion in Healthcare Deal (Wall Road Journal)
