What simply occurred? Amazon has agreed to buy One Medical, a human-centered, technology-powered major care group that makes healthcare extra reasonably priced and accessible by means of a mixture of in-person, digital and digital companies.
Neil Lindsay, SVP of Amazon Health Services, stated they imagine well being care is excessive on the record of experiences that have to be reinvented. The typical course of for seeing a health care provider at present concerned reserving an appointment and having to attend weeks or months to be seen. There’s additionally the effort of getting to take off work, drive to a clinic, discover a parking spot, and wait within the ready room earlier than being transferred to an examination room, solely to spend a rushed couple of minutes chatting with a doctor.
It does not finish there, nevertheless, as you might also need to go to a pharmacy and take care of all the things that entails.
The deal is notable for being the primary main acquisition below Andy Jassy, who changed founder Jeff Bezos as CEO final summer time. Jassy has been with Amazon since 1997 and was instrumental in serving to the corporate launch its internet companies enterprise.
It’s not Amazon’s first foray into the doubtless profitable well being business. In 2018, Amazon bought a web based pharmacy known as PillPack that delivers medicines in pre-sorted dose packaging on to your door. In November 2019, Amazon modified the identify of the service to PillPack by Amazon Pharmacy.
One Medical went public in early 2020 at round $22 per share. Value peaked in February 2021 at $58.70 however has since slid significantly.
The all-cash deal is valued at roughly $3.9 billion, or $18 per share. That represents almost a 77 % premium over the inventory’s closing value of $10.18 on the finish of buying and selling on Wednesday. The acquisition is topic to regulatory and shareholder approval in addition to customary closing situations. Amir Dan Rubin will stay CEO of One Medical as soon as the deal is full.
Image credit score: Tima Miroshnichenko, Artem Podrez