1Life Healthcare Inc., the parent company of One Medical, said Monday it has agreed to buy primary health-care group Iora Health for about $2.1 billion in an all-stock deal.
Iora focuses on serving Medicare populations with “built-for-purpose” technology, One Medical
The acquisition expands One Medical’s potential market to $870 billion across commercial and Medicare segments and extends the company’s platform to offer telehealth and in-person case in 28 markets and beyond, the company said.
One Medical, which charges membership fees in return for same-day appointments and other perks, said last month it ended the first quarter with 598,000 people as members, a 31% increase year-over-year.
The deal is expected to bring more than $350 million in annual revenue synergies by 2025, about $30 million in annual net cost synergies by 2025, and about $30 million in cumulative capital expenditures savings through 2025, One Medical said.
The acquisition is expected to close in late third or fourth quarter and is subject to customary closing conditions, including approval by One Medical and Iora Health stockholders and regulatory approval, the company said.
Shares of One Medical have lost nearly 18% so far this year, and advanced 9% in the past 12 months. That compares with gains of 12% and 32% for the S&P 500 index
in the same periods.