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Amazon.com Inc AMZN is acquiring 1Life Healthcare Inc ONEM for $3.9 billion or $18 dollars per share in an all-cash merger agreement, including debt.
About One Medical: 1Life Healthcare went public in 2020 and is operating under the name One Medical, providing primary-care services in-person or virtually as well as telemedicine services, as stated in the Wall Street Journal.
Forbes reported that One Medical operates 188 primary-care clinics in 25 markets with roughly 767,000 memberships, which is up 28% year-over-year.
One Medical CEO, Amir Dan Rubin said in a press release, “There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers.”
Key Acquisition Details: According to an earlier CNBC report, purchasing One Medical will open Amazon’s market to 188 clinics, a clientele base and data as Amazon attempts to expand in the healthcare industry.
Senior Vice President of Amazon Health Services, Neil Lindsay said that Amazon’s focus is to reinvent its current healthcare services to make the experience more convenient for the customer.
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Amazon’s History In Healthcare: In 2018, Amazon, JPMorgan Chase & Co JPM and Berkshire Hathaway Inc (NYSE: BRK-A) set up a joint venture to figure out how to reduce health-care costs and improve care for their U.S. employees.
Ultimately, the joint venture came to an end as it faced many issues from the beginning as data collection was amongst the biggest challenges.
Competition: As Amazon is striving for growth, it is no secret that the barriers to entry within the healthcare industry are amongst the toughest.
By acquiring One Medical, Amazon will now be in direct competition with companies such as UnitedHealth Group Inc UNH and CVS Health Corp CVS as well as other companies or hospitals looking to hire primary-care physicians and specialists, as reported by the Wall Street Journal.
Price Action: One Medical shares were up over 65% following the Thursday announcement, closing at $17.15 on Friday.
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Image and article originally from www.benzinga.com. Read the original article here.