Jul 21, 2022 - Economy

Amazon buys primary care company One Medical

Illustration of a first aid bag filled with cash.  

Illustration: Aïda Amer/Axios

Amazon has agreed to acquire One Medical, the primary care chain, for $18 per share in an all-cash transaction. It values the latter at about $3.9 billion, including its net debt.

Why it matters: This is Amazon's latest move into health care after some efforts panned out better than others.

  • Meanwhile, One Medical was reportedly considering its options after attracting takeover interest.

Details: Founded in 2007 by Tom Lee, One Medical went public in January 2020, raising $245 million and a valuation of $1.7 billion. It had a market cap of $1.98 billion, as of Wednesday's market close.

  • The Carlyle Group will fully exit its position in One Medical, in which it initially invested up to $350 million in 2018, per a source.

The bottom line: Amazon's perceived interest in brick-and-mortar health care has wavered over the years, but in buying One Medical the retail giant is making a clear and sizable commitment to the category, per Axios Pro's Sarah Pringle.

  • The acquisition also gives it access to One Medical's employer relationships, which it could leverage in new ways potentially,
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