Amazon shook up the health care industry Thursday by announcing it will acquire One Medical for about $3.9 billion, including debt. It's the e-commerce company's largest expansion into Amazon health care services.
Amazon will acquire San Francisco-based One Medical for $18 a share. This includes 1Life Healthcare, a managerial services company for One Medical that provides medical services in-office and virtually.
One Medical is a technology-centric primary health care business that held its initial public offering in January 2020. It priced at $14 a share and raised $245 million. One Medical has offices in 12 major U.S. markets. It offers in person health care service in addition to virtual care services.
One Medical stock soared 69% to 17.15 in afternoon trading on the stock market today. Amazon stock rose 1% to 123.90.
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Teledoc Health, also a technology-centric health care operation, was flat at 43.20 in afternoon action. Another, American Well, climbed 3.9% to 33.70.
Meanwhile, Evolent Health jumped 4.2% to 33.81. Evolent helps health care providers lower the cost of care. Rite Aid dropped 6.4% to 7.30.
Amazon Health Care Push Got Much Bigger
Amazon's acquisition of One Medical is its largest push yet into the health care business, which began with its acquisition of PillPack four years ago for a reported $1 billion. That gave Amazon the ability to ship prescription drugs around the country. In the past few years Amazon has steadily expanded into telehealth services provided to employees and to other businesses as a service.
Amazon said the mission of One Medical "is to make quality health care more affordable, accessible, and enjoyable through a seamless combination of in-person, digital, and virtual care services."
"We think health care is high on the list of experiences that need reinvention," Neil Lindsay, senior vice president of Amazon Health Services, said in a press release.
"Together with One Medical's human-centered 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," he said.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
