Amazon bets on health care and will buy One Medical for 3.49 million dollars

77 reported Thursday that it would buy One Medical for $3.49 billion in an all-cash transaction, which adds medical offices to its arsenal in the healthcare sector.

The operation heralds a major expansion of online retailer in health careafter testing virtual care visits for Amazon employees in Seattle in 2019 before offering such services to other employers and in other cities under the Amazon Care brand.

“We believe that health care is at the top of the list of experiences that need reinventionsaid Neil Lindsay, senior vice president of Amazon Health Services.

The operation is subject to regulatory approval and to the green light of the shareholders of One Medical.

One Medical is a primary care provider that offers telehealth services and options to meet with doctors in person at its 182 offices, spread across 25 markets in the United States.

The e-commerce giant agreed to pay $18 for each One Medical share, representing a 76.8% premium to the health care firm’s closing price on Wednesday. One Medical shares were trading at $16.95.

The news brought down the actions of the leader of telehealth Teladoc Health Inc by 8% in morning operations. Shares of drugstore retailers CVS Health and Walgreens Boots Alliance fell more than 2%.

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