Amazon to Buy One Medical for $3.9B to Expand Healthcare Offerings

Retail behemoth Amazon is expanding its healthcare offerings with the acquisition of tech-powered primary care provider One Medical, according to the company Thursday (July 21).

Amazon will acquire One Medical for $18 per share in an all-cash transaction valued at about $3.9 billion, including One Medical’s net debt. The transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval. As part of the deal, Amir Dan Rubin will remain as CEO of One Medical.

“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, senior vice president of Amazon Health Services, in the company press release. “Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”

One Medical offers in-person, digital and virtual care services.

“The opportunity to transform health care and improve outcomes by combining One Medical’s human-centered and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention and willingness to invest in the long-term is so exciting,” said Rubin in the press release. “There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers and payers.”

Related: New Data: Amazon Keeps Lead Over Walmart in Share of Q1 Retail Spending

The One Medical acquisition could strengthen Amazon’s position in the healthcare space and take some of the market share from Walmart. Overall, Amazon continues to lead the 60-year-old retail mainstay, according to the PYMNTS report “Amazon Versus Walmart Q1 2022,” with 8.8% of consumer retail spending and 3.4% of total consumer spending in the first quarter of 2022. Walmart grabbed 8.2% and 2.8%, respectively.

In the health and personal care segment, Amazon’s relatively new pharmacy service, launched in 2020, offers a range of over-the-counter personal care products in addition to general goods within this segment. However, it has yet to overtake Walmart. It has been stuck for nearly two years with its market share of about 4%.