Amazon just spent worth $3.5 billion to acquire One Medical
One Medical was acquired by Amazon for $3.5 billion, or $18 per share. Amazon, an online retailer, approved the $3.49 billion purchase of One Medical, a crucial healthcare institution, this week. This is because the company is concentrating on expanding into virtual healthcare and finally incorporating conventional doctor’s offices. With this deal, a few rather unimportant players would combine. In an effort to grow faster, the retail giant is stepping up its efforts to get into the healthcare business.
About three years ago, in Seattle, the online retailer began offering its employees virtual medical appointments. Notably, this was before they offered the employers facilities under the Amazon Care name. Similar to that, it bought PillPack, a drugstore, a year earlier. As a result, Amazon created a website specifically for prescription delivery services. Neil Lindsay, senior VP of Amazon Health Services, explained how the corporation saw the healthcare industry as one that needed additional reinvention. It talked about how it planned to improve and add to care facilities, both in person and online.
With this agreement, Amazon would acquire the insolvent One Medical. According to its official website, the healthcare sector employs 767,000 people, including staff from clients like Airbnb and the search engine behemoth Google. As customers came in one by one during the shutdown, Amazon saw a big rise in demand for its facilities.
When the acquisition is completed, One Medical will supply the retail behemoth with up to 188 medical practices, and the Carlyle Group will depart. The agreement calls for Amazon to pay $18 per share for the company, up around 76.8% from the facility’s most recent closing, when its shares were trading at $17.12. Currently, the agreement is valued at $3.9 billion.