That Federal Trade Commission (FTC) is investigating the $3.9 billion transaction between Amazon.com Inc. AMZN and 1Life Healthcare Inc. ONE.
What happened: According to a submission with the U.S. Securities and Exchange Commissionthe FTC sent a notice to each company requesting “additional information and documentation” about the deal.
Amazon first announced a deal for One Medical, a family doctor owned by 1Life. in July. According to reports, the Seattle-based e-commerce giant outbid CVS Health Corp. CV in an auction process.
See also: Amazon faces stiff competition as it expands into the healthcare industry
Why it matters: A federal investigation like this can delay the collection process.
The filing extends the waiting period imposed by the Hart-Scott-Rodino Act “up to 30 days after One Medical and Amazon have substantially complied with the second filing, unless that period is voluntarily extended by the parties or terminated earlier by the FTC “. filing specified.
The news is also a hiccup for Amazon’s CEO Andy Jassiwho took over the helm from the founder jeff bezos in July 2021. One of Jassy’s goals is to strengthen Amzon’s healthcare offering. The One Medical deal, Jassy’s first major M&A move as CEO, would give Amazon ownership of about 180 clinics.
See also: How has Amazon performed over the past year with new CEO Andy Jassy at the helm?
What’s next: Both companies are expected to “response promptly” to the FTC’s request and “work cooperatively” during the remainder of the review process, the filing continued.
price target: Amazon closed at $127.51 a share on Friday – down 0.24%. Meanwhile, 1Life closed at $17.40 a share — up 0.35%.
Image: FTC Building, Wikimedia Commons
