- Shares of One Medical jumped after Amazon said it would buy the primary healthcare provider for $3.9 billion.
- The stock price jumped as much as 68% to $16.97 on Thursday morning.
- Amazon will buy the company in an all-cash transaction equal to roughly $18 per share.
One Medical stock jumped on Wednesday following an announcement that Amazon would buy the healthcare provider in an $3.9 billion dollar deal.
Shares of 1Life Healthcare, which operates a primary care business as One Medical, soared to $16.97 at the opening bell, up by about 67%.
Amazon will purchase the healthcare provider in an all-cash deal including its debt, paying roughly $18 a share for the firm.
The move furthers the retail giant's ambitions in the healthcare services sector. Amazon already operates Amazon Care, a platform similar to One Medical that connects users to Amazon-affiliated medical professionals. Both offer a variety of telehealth and in-person services to members.
"We think health care is high on the list of experiences that need reinvention," Neil Lindsay, the senior vice president of Amazon Health services said in a statement, adding that the company showed interest in One Medical due to its integration of technology in a ""human-centered" healthcare approach. "We want to be one of the companies that helps dramatically improve the healthcare experience over the next several years," Lindsay said.
At the end of March, One Medical operated 188 locations in the US and served about 767,000 members, according to a filing.
One Medical will retain its Chief Executive Amir Dan Rubin.