Amazon buys One Medical for $3.9bn and promises to reinvent healthcare
Amazon announced in the summer of 2022 that it would buy One Medical, a primary care company. More than six months later, the deal was closed.
Here's What We Know
One Medical is a subsidiary of 1Life Healthcare Inc. It operates 182 medical offices across the United States. Amazon will pay $3.9 billion including debt. The stock will be valued at $18.
The closure of the deal was announced a day after the Federal Trade Commission (FTC) said it has no plans to challenge the takeover. However, the regulator intends to investigate the deal to look into potential anti-competitive effects and privacy concerns that could arise from gaining access to people's health data. An FTC spokesman told Amazon that the online retailer was closing the deal at its own risk and could face challenges from the government.
The US company continues to expand its presence in the healthcare sector. In 2018, Amazon acquired online pharmacy PillPack, and a year later opened a primary care clinic for employees. A special version of Alexa voice assistant for healthcare was introduced in 2021.
The One Medical takeover will not result in an immediate change in services. But the cost of annual membership has been temporarily reduced by $55 (to $144). Amir Den Rubin will remain CEO of One Medical. With the purchase, Amazon has promised to reinvent healthcare.