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Amazon.com Inc (NASDAQ: AMZN) on Thursday said it has signed a deal to buy primary care firm One Medical (NASDAQ: ONEM) for $3.49 billion, adding brick-and-mortar doctors’ offices to its ever-expanding arsenal as the e-commerce giant pushes deeper into healthcare.
“We think healthcare is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services.
The all-cash deal shows the dramatic expansion of Amazon’s healthcare ambitions.
Through the acquisition, Amazon aims to get hold of One Medical’s big brand customers like Airbnb, Google, Instacart and Lyft, according to the healthcare firm’s website.
One Medical is a primary care provider that offers both telehealth services and options to meet doctors in person at its 182 centers across 25 markets in the United States.
The e-commerce giant said it will pay $18 for each share of One Medical, representing a premium of 76.8% compared to the healthcare firm’s closing price on Wednesday.
One Medical share jumped 17.25% to $17.25.
The deal is valued at $3.9 billion, including One Medical’s net debt.
The announcement knocked down the shares of telehealth leader Teladoc Health Inc (NYSE: TDOC) by 8% in morning trading.
Shares of drugstore retailers CVS Health Corp (NYSE: CVS) and Walgreens Boots Alliance Inc (NASDAQ: WBA) fell more than 2.5%.
Until now, the e-commerce giant has a partnership with Care Medical to serve Amazon Care users.
Picture Credit: GeekWire
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