Amazon (AMZN) introduced right now that it might purchase subscription well being care supplier One Medical for $3.9 billion.
The deal marks one in all Amazon’s most high-profile pushes into well being care thus far. So, why One Medical? To start out, One Medical — which was based in 2007 and focuses on so-called concierge major care — was in the marketplace. The corporate had reportedly been fielding takeover curiosity from giants like CVS (CVS).
One Medical’s $199 annual subscription affords 24/7 entry to telehealth companies, same-day appointments, and an app. The corporate had 188 U.S. areas and greater than 750,000 members, as of a Could submitting. The corporate’s focus is on major care and boasts nearly no wait occasions, and in its IPO submitting expressed curiosity in shifting into behavioral well being. The Carlyle Group has been one in all One Medical’s key buyers, and is reportedly set to exit after Amazon’s acquisition.
One Medical, whose mum or dad firm 1Life Healthcare trades underneath the ticker ONEM, went public in 2020. The corporate’s shares, as of shut Wednesday, had been down about 44% 12 months thus far. Nevertheless, as of this morning, One Medical’s shares have skyrocketed within the wake of the information of the Amazon deal, up almost 70% in noon buying and selling.
One Medical, ought to the deal shut, can even be one in all Amazon’s greatest acquisitions ever, surpassed solely by MGM and Entire Meals — which clocked in at $8.45 billion and $13.7 billion, respectively.
Amazon’s well being care strikes (thus far)
Amazon’s efforts to broaden its footprint in well being care stretch again just a few years, and a few initiatives have been extra profitable than others.
In 2018, the corporate purchased on-line pharmacy PillPack and used that deal to launch “Amazon Pharmacy” the next 12 months. Amazon additionally partnered with JPMorgan Chase and Berkshire Hathaway on a well being care initiative known as Haven, which shuttered considerably ignominiously final 12 months.
Nonetheless Huge Tech’s push into well being care has endured. Apple (AAPL) simply revealed a report outlining its strikes into well being care, and the way it plans to construct on its well being options — from sleep monitoring to step-tracking — and what its partnerships with medical establishments entail.
Allie Garfinkle is a senior tech reporter at Yahoo Finance. Discover her on twitter @agarfinks.
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