Neil Lindsay, SVP of Amazon Health Services, said: “We think health care is high on the list of experiences that need reinvention. The proposed acquisition see Amazon acquiring One Medical for approximately £15 ($18) per share in an all-cash transaction that has been valued at approximately £3.3billion ($3.9billion). One Medical’s mission is to make quality healthcare more affordable and accessible through a combination of in-person, digital and virtual care services. One Medical’s offering is expected to close on February 4.Amazon is set to acquire primary care tech provider, One Medical, for approximately £3.3billion ($3.9billion). Morgan and Morgan Stanley served as the lead underwriters for the deal. “If there’s a market where these companies can grow and exit, you can have more companies follow.” “At some point, these companies are going to have to demonstrate that they can be profitable,” he said. Kurtzman compared One Medical’s IPO to the recent spate of digital health companies going public, such as Livongo, Phreesia and Progyny. They need bricks and mortar, and they need to pay physician salaries.”

“One Medical is what I would call a tech-enabled service. The reason I like it, I think the only way to fundamentally change healthcare is to change the way it’s delivered,” Kurtzman said. One Medical chalked up the costs to the new offices, and salaries and benefits as it grew its workforce and prepared for the IPO. The company’s cost of care increased to $168.6 million, though it represented a slightly smaller chunk of One Medical’s overall revenue, at 61 percent. One Medical reported a net loss of $52.45 million, an increase from its $45 million net loss last year. However, the company also saw its costs grow as it continued its rapid expansion. It also added six new offices in early 2019. The company brought in a total of $227.4 million in revenue, up 30 percent from 2018. One Medical had a total of 422,000 members at the end of December, a 22 percent increase from last year, according to an amended prospectus. The company also has a tech component: it built its own health record and practice management system, as well as a front-facing app that lets patients book appointments and contact their provider. The company has also been focused on building out its corporate customer base it currently serves 6,000 employers, Rubin wrote. One Medical offers its services at about $200 per year, giving patients access to its offices in most major metros, from Los Angeles to Boston. The San Francisco-based startup essentially offers concierge primary care services, but at a more modest price. “This is a company that’s going to require more capital to grow.” “Not knowing the nature of the deal structure, this has the flavor of a financing,” he said. Gary Kurtzman, managing director of healthcare at Safeguard Scientifics, said the IPO value was a “modest uptick” to the company’s last private financing round.

Morgan Asset Management and Redmile Group. In total, One Medical had raised more than $530 million as a private company, with investors including Alphabet’s GV, Benchmark, J.P. In 2018, One Medical raised $350 million from private equity investor the Carlyle Group, valuing the company above $1 billion. It also creates an opportunity for a broader group of investors to participate in our vision to delight millions of members with better health and better care, while lowering costs.” “Publicly raising funds will allow us to widen our reach and impact. “Today we mark a milestone on One Medical’s journey to transform health care with our public listing on Nasdaq,” One Medical CEO Amir Dan Rubin wrote in a blog post.

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