Amazon to acquire One Medical clinics in latest push into health care.

Amazon stated on Thursday that it had reached a deal to accumulate One Medical, a community of main care clinics, in a deal price $3.9 billion, a giant step within the e-commerce large’s plans to turn into a participant within the well being care business.

One Medical, which is predicated in San Francisco, operates a community of main care suppliers that supply in-office and digital medical providers, and is without doubt one of the main opponents to an analogous however smaller service Amazon had began to supply.

Amazon will purchase One Medical for $18 per share in an all-cash transaction, it stated in an announcement. The deal would require approval from One Medical’s shareholders and regulators.

“We expect well being care is excessive on the record of experiences that want reinvention,” Neil Lindsay, the senior vp of Amazon Well being Companies, stated within the assertion.

The deal is the primary main acquisition beneath Andy Jassy, who took over as Amazon’s chief government final 12 months when founder Jeff Bezos stepped down. Mr. Jassy has instructed traders he would rein in prices, although the acquisition reveals he won’t shrink back from strategic investments on the proper value.

One Medical, a former Silicon Valley “unicorn,” a time period for a start-up valued by traders at $1 billion or extra, went public in 2020 at $22.07 a share. After hitting a peak of $58.70 final 12 months, its inventory value closed on Wednesday at $10.18.

“We look ahead to innovating and increasing entry to high quality healthcare providers, collectively,” stated One Medical’s chief government, Amir Dan Rubin, who will stay in his put up after the deal closes.

In 2019, Amazon started operating its personal main and pressing care service, referred to as Amazon Care, to deal with its workers, first in Washington State after which nationally. It’s based mostly on digital periods with suppliers and residential visits, although it has been increasing its bodily clinics.

Amazon Care has tried to get different employers to supply the service, although it has not had a lot success. In saying a nationwide growth this 12 months, it promoted Silicon Labs, TrueBlue and Entire Meals Market, which Amazon owns, as purchasers.

One Medical is way bigger, with greater than 8,500 employers signed up as clients. One Medical additionally presents memberships on to customers.

Amazon’s ambitions to be a well being care participant accelerated in 2018, when it spent $753 million to purchase the start-up PillPack, a web-based pharmacy, in an effort to seize a chunk of the $560 billion prescription drug business.