Bloomberg reports that before Amazon made the deal to acquire primary healthcare company One Medical for $3.5 billion, CVS Health was trying to make a deal to buy the company.
CVS, the story says, "negotiated with the company for months, and even offered the same amount that Amazon ultimately agreed to pay.
"CVS first approached One Medical parent 1Life Healthcare Inc. about a deal in October 2021 and was in the mix to buy the company until weeks before it agreed to sell to Amazon … CVS had offered to pay $18 a share in cash for One Medical in June but later had concerns about moving at an 'expedited pace'."
The difference maker was, in fact, speed: "Amazon entered the fray in February but paused M&A discussions in April. It restarted M&A conversations after it learned that 1Life had gotten an offer from someone else. On July 2, Amazon offered to pay $18 per share in cash, subject to due diligence. Amazon said it would stop engaging if its interest leaked.
"Amazon ultimately reached an agreement to buy One Medical on July 20. The deal was announced the next day."
- KC's View:
Go figure. Amazon moved faster than CVS. I'm shocked.