Amazon (NASDAQ:AMZN) is acquiring One Medical for $18 a share, an all-cash deal that values the primary health care provider at roughly $3.9 billion, the companies said Thursday.
The deal deepens Amazon’s presence in health care, which Neil Lindsay, senior vice president of Amazon Health Services, said is “high on the list of experiences that need reinvention.”
The e-commerce giant hopes to improve how people book appointments and the experience of being seen by a physician, Lindsay said in a statement.
“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” he said.
One Medical, which went public in 2020, operates a network of boutique primary care practices, and also offers a range of telemedicine services.
It has grown to oversee 188 medical offices in 25 markets, and counts 767,000 members, according to its latest quarterly results. One Medical reported a net loss of $90.9 million on revenue of $254.1 million in the first quarter.
“There is an immense opportunity to make the health care experience more accessible, affordable and even enjoyable for patients, providers, and payers,” One Medical CEO Amir Dan Rubin said.
Once the deal closes, Rubin will continue to run One Medical.
As of Wednesday’s close, prior to the announcement of the deal, shares of One Medical were trading at $10.18.
AMZN shares started out Thursday down 17 cents to $122.60.