Amazon is buying primary health care company One Medical for roughly $3.9 billion, the companies announced Thursday morning. The company says the deal will allow it to "reinvent" health care and "dramatically improve the healthcare experience over the next several years," said Neil Lindsay, senior vice president of Amazon Health Services.
One Medical CEO Amir Dan Rubin said in a statement that the deal represents an opportunity to merge Amazon's "customer obsession" with One Medical's health care technology and expertise. Rubin will remain CEO upon completion of the deal, with Amazon acquiring the company for $18 per share in an all-cash transaction. The deal is subject to approval by federal antitrust regulators and requires approval by One Medical shareholders.
One Medical, owned by parent company 1Life Healthcare, was founded in 2007 in San Francisco. The boutique primary care company now has 188 medical offices in 25 markets and has more than 8,500 enterprise clients across the country, according to its latest quarterly results. It has a direct-to-consumer, membership-based model and has made a big push into telehealth since the beginning of the pandemic. The company went public in 2020.
Amazon has delved deeper into the health care space in recent years, growing its brick-and-mortar health care clinic presence and expanding its telehealth service, Amazon Care. It also bought online pharmacy company PillPack in 2018. Haven, Amazon's previous venture with Berkshire Hathaway and JP Morgan to disrupt employee health care, fell apart in 2021 after three years. The move to buy One Medical signals Amazon's ambition to dive into broader primary care.