- Amazon continues to expand in the healthcare business.
- It bought One Medical for 3,490 million dollars.
- It will pay 18 dollars for each One Medical share.
Amazon reported Thursday that it will buy healthcare provider One Medical for $3490 million. Jeff Bezos’ company is expanding into virtual health care and also adding physical health care practices.
Amazon’s origins in the healthcare business go back to 2019 when it piloted virtual care for its employees in Seattle, before offering these services to other employers under the Amazon Care domain. Before that it bought online pharmacy Pill Pack in 2018 and then partnered with Teladoc Health, a leader in virtual healthcare.
“We believe healthcare is high on the list of experiences that need to be reinvented,” said Neil Lindsay, senior vice president of Amazon Health Services.
Some of the customers that One Medical owned and will come under Amazon’s orbit include Alphabet and Airbnb Inc.
One Medical develops its services through virtual care and also offers personal health care. The company owns more than 125 medical practices throughout the United States. This combination of the two medical activities is part of a fundamental strategy for the future of Amazon Care.
Amazon will pay $18 per One Medical share. Its stock was trading near $17. The deal is valued at $3900 million, including One Medical’s net debt.
Amazon maintains a limited presence in the healthcare business, so there should be no issues related to antitrust laws. But it should be clarified that the DOJ (US Department of Justice) keeps a close eye on these kinds of deals to avoid any kind of monopolistic practices.