One Medical jumps 67% as Amazon inks $3.9B buyout deal

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• Amazon (NASDAQ:AMZN) has agreed to acquire One Medical (ONEM), an operator of a membership-based primary care platform for nearly $3.9B, the companies announced on Thursday.

• After a brief trading halt, One Medical (ONEM) shares surged ~67% in the pre-market while Amazon (AMZN) added ~1.0%.

• Per the terms, Amazon (AMZN) will buy the San Francisco, California-based health services company for $18 per share in an all-cash transaction valuing it at approximately $3.9B, including net debt.
• Following the closure of the deal, Amir Dan Rubin will remain as the Chief Executive of One Medical (ONEM). Completion of the deal is subject to regulatory clearance and the approval of One Medical's shareholders.
• Stocks to watch: One Medical's (ONEM) rivals in value-based care, namely Oak Street Health (OSH), Privia Health Group (PRVA), agilon health (AGL), CareMax (CMAX) and Cano Health (CANO)

• Early this month, Bloomberg reported that One Medical (ONEM) was weighing options following takeover interest.

Comments

[Jamjack]

Thanks to those who shared experiences at onem. I didn't know anything about them. I missed this news. Long Amzn

[Value__Hunter]

Big opening shot in tech's next arms race: healthcare.

[ecarboniero]

wallstreetbets time!

[Michael Dolen]

I believe this will be their 2nd largest acquisition, after Whole Foods. They normally do deals of only ~$1B and below.

[Michael Maiello]

@Michael Dolen MGM is $8.5B. This would be 3rd on an absolute basis. Nothing else over $1.2 billion. Though I might index these to AMZN's market cap.

[Michael Dolen]

@Michael Maiello Yes, I forgot the MGM deal finally closed this year. Took forever.

[Michael Maiello]

@Michael Dolen That one probably spooked regulators more than AMZN getting into healthcare does.

[Another Mountain's Rock Investing]

Who would've thought

[Jeff B ME]

Darn... we RAD holders kept hoping Amazon would bail out Rite Aid...

[Another Mountain's Rock Investing]

@Jeff B ME no one wants them, not even cvs or wba

[Michael Maiello]

And TDOC plummets every time Amazon makes another questionable move into this space. :)

[phyllisquirk]

@Michael Maiello yep looks like no bid for tdoc. the cooler

[Gary J is Rich on AMZN]

“The opportunity to transform health care and improve outcomes by combining One Medical’s human-centered and technology-powered model and exceptional team with Amazon’s customer obsession, history of invention, and willingness to invest in the long-term is so exciting,” said Amir Dan Rubin, One Medical CEO. “There is an immense opportunity to make the health care experience more accessible, affordable, and even enjoyable for patients, providers, and payers. We look forward to innovating and expanding access to quality healthcare services, together.”

Fly by posters should study up.

[noobwhale]

Loaded up under $10. Wish they wouldn't have been bought out.

[Stock Scanner]

Wonder what the attraction of buying a loss making bunch of medical offices is. Jassy is losing it!

[User 31614085]

@Ranjit Thomas, CFA do they actually own medical offices..or do they just help people make appointments at other medical offices?? I'm confused as to what their business model is...

[Stock Scanner]

@MJL987 They employ doctors and other staff. It's a genuine business! I used them when I lived in NYC and liked the service. They used to charge a $200 annual fee at that time, but unlike most medical offices, they were efficient without much of a wait time.

[mikejack]

@Ranjit Thomas, CFA They are a "concierge" medical practice. By virtue of paying an annual fee, a patient can call in the morning and get a same day appointment. Our son worked for One Medical in NYC about 4 years ago.

[Manzanita Research]

I have used $ONEM and like them. But I am not sure how they are synergistic with Amazon?

[Another Mountain's Rock Investing]

@Manzanita Research amazon is trying to move into healthcare. https://amazon.care/

[Troutr]

@Manzanita Research it's not good to me. Stay tuned for an imminent subscriber loss for onem

[Dr Paul Varcoe]

Hey Troutr, Just cancel your subscription without the histrionics. Your paranoia and lack of self control must make your life and those around you truly miserable.

[Gary J is Rich on AMZN]

@Dr Paul Varcoe

Spot on, Doc.

[Troutr]

@Dr Paul Varcoe I will. Thanks, Dr. Phil.

[JC_value]

Anti trust

[Gary J is Rich on AMZN]

worthless post

[StevenK1]

@Gary J is Rich on AMZN we tend to use the 'like' button to establish that. Thank you.

[Gary J is Rich on AMZN]

@StevenK1 double down