Online retail and technology giant Amazon has announced that it has completed its $3.5 billion acquisition of primary care provider One Medical. The news comes just a day after a U.S. Federal Trade Commission (FTC) official announced that the agency would not challenge the deal.
The takeover gives Amazon a virtual health offering as well as offices for in-person medical services for the first time. Its shares rose 2% in the morning trade.
Along with this announcement, the online retailer has also said that it will discount One Medical membership to $144 from $199 for the first year to new customers, irrespective of whether they are subscribers to Amazon's Prime loyalty program. The One Medical membership covers access to One Medical's virtual care services, referral and insurance navigation, the company said in a news release.
The deal reflects Amazon's long-held ambition to greatly simplify how consumers navigate healthcare in the U.S.
“Customers want and deserve better, and that’s what One Medical has been working and innovating on for more than a decade. Together, we believe we can make the health care experience easier, faster, more personal, and more convenient for everyone,” Amazon CEO Andy Jassy said in a statement.
While the FTC said it wouldn’t block the deal, the agency would continue its investigation.
"The FTC’s investigation of Amazon’s acquisition of One Medical continues," FTC spokesman Douglas Farrar said in a statement. "The commission will continue to look at possible harms to competition created by this merger as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical."
It is also probing Amazon's plan to buy iRobot Corp for $1.7 billion.
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