The transaction, which has been closed after a US Federal Trade Commission (FTC) positive announcement, will address the e-commerce company’s goal of expanding its presence in the virtual healthcare space
Amazon closes acquisition of One Medical. (Credit: Marques Thomas on Unsplash)
US-based technology and e-commerce company Amazon has completed its previously announced acquisition of primary care provider One Medical for $3.5bn.
In July last year, Amazon signed an agreement to acquire the primary care provider.
Earlier this month, The Wall Street Journal reported that The US Federal Trade Commission is preparing to lodge an antitrust lawsuit against Amazon.
The transaction has been closed, a day after a US Federal Trade Commission (FTC) official announced that the agency would not challenge the proposed acquisition.
The transaction underlines the e-commerce company’s goal of expanding its presence in the virtual healthcare space, reported Reuters.
Amazon Health Services senior vice president Neil Lindsay said: “We’re on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey.
“One Medical has set the bar for what a quality, convenient, and affordable primary care experience should be like. We’re inspired by their human-centred, technology-forward approach and excited to help them continue to grow and serve more patients.”
One Medical operates in 27 markets across the US, from San Diego to Cape Cod, with 836,000 staff, and generated net revenue of $1bn, at the end of 2022.
As part of the deal, One Medical chief executive Amir Dan Rubin will continue in the same position, reporting to Amazon Health Services senior vice president Neil Lindsay.
In addition, Amazon is lowering the One Medical membership for new customers, from an initial $199 to $144 for the first year, regardless of their Amazon Prime subscription.
The membership also covers access to One Medical’s virtual care services, referral, and insurance navigation.
One Medical CEO Amir Dan Rubin said: “One Medical has been on a mission to help transform health care through its human-centred and technology-powered model to delight people with better health, better care, and better value, within a better team environment.
“We now set our sights on delivering even further positive impacts for consumers, employers, care teams, and health networks, as we join Amazon with its long-term orientation, history of invention, and passion for reimagining a better future.”
Furthermore, FTC is also investigating Amazon’s $1.7bn acquisition of iRobot, which developed the autonomous Roomba vacuum, reported Reuters.