Amazon wants to acquire One Medical for $3.9 billion, but the FTC is investigating the deal before agreeing to move forward.
Amazon recently announced the $3.9 billion acquisition of One Medical. The Federal Trade Commission (FTC) has requested Amazon for further data as they investigate the acquisition. One Medical and Amazon are both under inquiry, and the FTC has asked for additional details to make sure the deal is within regulations.
FTC investigates Amazon
Investigation and information requests are a normal occurrence in these instances. The steps are standard regulatory processes in order to ensure an acquisition is legal. The FTC issued a second request in this regard. According to the filing, it aims to extend the waiting period to 30 days. Antitrust inquiries can typically take months before completion.
There is no clear reason why the FTC is scrutinizing the companies so strictly. “Both parties expect to promptly respond to the Second Request and to continue to work cooperatively with the FTC in its review of the Merger”, the security filing disclosed.
One Medical is a healthcare chain that operates 188 clinics for over 767,000 members in the US. According to the latest financial report, the company generated quarterly revenue of $255.8 million, a 112 percent year-over-year increase.
“We think healthcare is high on the list of experiences that need reinvention”, Neil Lindsay, senior vice president of Amazon Health Services, said during the acquisition’s announcement. “Together with One Medical’s human-centered and technology-powered approach to healthcare, we believe we can and will help more people get better care, when and how they need it.”
The FTC is still investigating the merger. Time will tell how long it gets postponed until the entire process is completed.