Why Amazon’s buying this well being care firm for $3.9 billion

Amazon (AMZN) introduced at the moment that it could purchase a subscription to well being care supplier One Medical for $3.9 billion.

The deal marks one in every of Amazon’s most high-profile pushes into well being care thus far. So, why One Medical? To begin, One Medical — which was based in 2007 and focuses on so-called concierge major care — was in the marketplace. The corporate had reportedly been fielding takeover curiosity from giants like CVS (CVS).

One Medical’s $199 annual subscription affords 24/7 entry to telehealth companies, same-day appointments, and an app. The corporate had 188 US places and greater than 750,000 members, as of a Might submitting. The corporate’s focus is on major care and boasts just about no wait occasions, and in its IPO submitting expressed curiosity in transferring into behavioral well being. The Carlyle Group has been one in every of One Medical’s key traders, and is reportedly set to exit after Amazon’s acquisition.

One Medical, whose mum or dad firm 1Life Healthcare trades below the ticker ONEM, went public in 2020. The corporate’s shares, as of shut Wednesday, have been down about 44% yr thus far. Nonetheless, as of this morning, One Medical’s shares have skyrocketed within the wake of the information of the Amazon deal, up practically 70% in noon buying and selling.

Physician John Jones, DO tests administrative assistant Morgan Bassin for the coronavirus disease (COVID-19) at One Medical in Scottsdale, Arizona, US June 17, 2020. One Medical employees receive testing every two weeks.  REUTERS/Courtney Pedroza

Doctor John Jones, DO exams administrative assistant Morgan Bassin for the coronavirus illness (COVID-19) at One Medical in Scottsdale, Arizona, US June 17, 2020. One Medical workers obtain testing each two weeks. REUTERS/Courtney Pedroza

One Medical, ought to the deal shut, will even be one in every of Amazon’s greatest acquisitions ever, surpassed solely by MGM and Complete Meals — which clocked in at $8.45 billion and $13.7 billion, respectively.

Amazon’s well being care strikes (up to now)

Amazon’s efforts to develop its footprint in well being care stretch again a number of years, and a few initiatives have been extra profitable than others.

In 2018, the corporate purchased on-line pharmacy PillPack and used that deal to launch “Amazon Pharmacy” the next yr. Amazon additionally partnered with JPMorgan Chase and Berkshire Hathaway on a well being care initiative referred to as Haven, which shuttered considerably ignominiously final yr.

Nonetheless Huge Tech’s push into well being care has continued. Apple (AAPL) simply printed a report outlining its strikes into well being care, and the way it plans to construct on its well being options — from sleep monitoring to step-tracking — and what its partnerships with medical establishments entail.

Allie Garfinkle is a senior tech reporter at Yahoo Finance. Discover her on twitter @agarfinks.

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