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Amazon expands healthcare offering in US$3.9bn takeover

One Medical’s share price got a boost following news of the merger

Amazon.com Inc (NASDAQ:AMZN) has agreed to buy healthcare tech group One Medical for approximately US$3.9bn, the companies said in a statement today.

One Medical is costing US$18 per share in an all-cash transaction, a 77% premium over the healthcare provider's US$10.18 share price when the markets closed yesterday.

The company offers digital and virtual healthcare services, allowing patients to renew prescriptions, schedule health appointments and access health records.

Amazon’s senior vice president of Health Services Neil Lindsay indicated that a technology-powered approach to healthcare will become a part of its long-term mission.

“We love inventing to make what should be easy easier and we want to be one of the companies that helps dramatically improve the healthcare experience over the next several years,” Lindsay said.

“Together with One Medical’s human-centred and technology-powered approach to health care, we believe we can and will help more people get better care, when and how they need it. We look forward to delivering on that long-term mission.”

One Medical chief executive Amir Dan Rubin will stay in the role following the deal, which requires approval by its shareholders and regulators.

San Francisco-based 1Life Healthcare is the managerial services company for the affiliated One Medical physician-owned professional companies that deliver medical services both in the office and virtually.

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