What just happened? Amazon has agreed to purchase One Medical, a human-centered, technology-powered primary care organization that makes healthcare more affordable and accessible through a combination of in-person, digital and virtual services.
Neil Lindsay, SVP of Amazon Health Services, said they believe health care is high on the list of experiences that need to be reinvented. The typical process for seeing a doctor today involved booking an appointment and having to wait weeks or months to be seen. There's also the hassle of having to take off work, drive to a clinic, find a parking spot, and wait in the waiting room before being transferred to an exam room, only to spend a rushed few minutes speaking to a physician.
It doesn't end there, however, as you may also have to go to a pharmacy and deal with everything that entails.
The deal is notable for being the first major acquisition under Andy Jassy, who replaced founder Jeff Bezos as CEO last summer. Jassy has been with Amazon since 1997 and was instrumental in helping the company launch its web services business.
It's not Amazon's first foray into the potentially lucrative health industry. In 2018, Amazon purchased an online pharmacy called PillPack that delivers medications in pre-sorted dose packaging directly to your door. In November 2019, Amazon changed the name of the service to PillPack by Amazon Pharmacy.
One Medical went public in early 2020 at around $22 per share. Value peaked in February 2021 at $58.70 but has since slid considerably.
The all-cash deal is valued at roughly $3.9 billion, or $18 per share. That represents nearly a 77 percent premium over the stock's closing price of $10.18 at the end of trading on Wednesday. The acquisition is subject to regulatory and shareholder approval as well as customary closing conditions. Amir Dan Rubin will remain CEO of One Medical once the deal is complete.