According to a press release, Amazon is going to acquire the chain of primary healthcare clinics for $18 per share. That’s about a 76.8% premium compared to the closing price of $10.18 per share for ONEM stock on Wednesday.
That purchase price has the total value of the deal for One Medical reaching $3.9 billion. This includes the company’s current net debt. Investors will note that Amazon is using cash to fuel its acquisition of One Medical.
Amazon isn’t planning to shake up the leadership team at One Medical after the deal is complete. Instead, current CEO Amir Dan Rubin will continue to lead the company after its joins the e-commerce giant.
Neil Lindsay, SVP of Amazon Health Services, said the following about the deal:
Together with One Medical’s human-centered and technology-powered approach to health care, we believe we can and will help more people get better care, when and how they need it. We look forward to delivering on that long-term mission.
The deal between One Medical and Amazon still needs to complete customary closing conditions. That includes getting approval from regulators and shareholders. The two didn’t say when they expect the deal to close.
ONEM stock is experiencing heavy trading today on the buyout news. As of this writing, more than 40 million shares have been traded. To put that in perspective, the company’s daily average trading volume is closer to 2.6 million shares.
ONEM stock is up 69.4% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.