Merger Arbitrage Mondays – Amazon Acquires 1Life Healthcare (One Medical)

  • July 25, 2022

Merger activity decreased last week with two new deals announced and six deals completed including three that at various points sported large spreads and appeared to be in trouble. One of the deals announced last week was a potential deal in the works.

1Life Healthcare (ONEM)

Having worked in healthcare services in a San Francisco based company, I was acutely aware of One Medical, a company that was attempting to reinvent the way primary care was delivered to patients. 1Life Healthcare also known as One Medical was founded by Tom Lee in 2007. Google was an early investor in the company and by the time the company went public in January 2020, The Carlyle Group with a 27% stake, was its largest investor.

1Life and the One Medical entities do business under the “One Medical” brand. The company operates as a membership-based primary care practice. One Medical grew from a single clinic in San Francisco to 182 medical offices in the United States, providing 24/7 virtual care. Patients can access virtual medical services provided by One Medical for an annual membership fee of $199. One Medical was unique as it required an annual subscription and more often than not, that subscription fee was picked up by the employer because of the company’s deep rooted partnerships with several large companies. One Medical Services

The company’s stock took a pretty big hit after it announced a large $2.1 billion all stock acquisition of Iora Health,  a company focused on providing senior care and then once again this year when non-profitable growth stocks fell out of favor. The stock declined nearly 90% peak-to-trough from a high of almost $60 per share in February 2020 to just above $6 by May 2022. The deal by Amazon is not significantly higher than the company’s $14 IPO price. I looked at 1Life Healthcare multiple times and it was also on the “broken growth watch list” we discussed in our January 2020 mid-month update. Unfortunately the fact that the company was cash flow negative and conversations I had with executives who have extensive healthcare services experience, kept me away from the stock.

We added 1Life Healthcare as a potential deal in the works on July 5, 2022, when Bloomberg reported that the company was considering options after attracting takeover interestCVS Health Corporation (CVS) had initially shown interest but later backed out. 1Life’s price after this announcement was $10.34. The potential deal was announced almost a year after the company acquired Iora Health.

One Medical and Iora Health

On July 21, 2022, Amazon and One Medical entered into a definitive merger agreement, under which Amazon will acquire One Medical for $18, in a transaction valued at $3.9 billion, representing a premium of over 76%. This is Amazon’s third largest acquisition after its purchases of organic grocer Whole Foods Market and film studio MGM.  The deal currently sports a spread of 4.96% or over 11% annualized if the deal closes by the end of the year.

You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.

Deals In The Works

There were three new deals announced in the Deals in the Works section last week.

  1. On July 19, 2022, Godspeed Capital Management sent a letter to the Board of Directors of Hill International (HIL), proposing to acquire the company for $1.85 per share in cash.
  2. On July 19, 2022, Reuters reported that private equity firm CVC Capital and wood panel manufacturer Kronospan submitted a joint expression of interest to acquire Canadian lumber company West Fraser Timber (WFG). The same day, West Fraser issued a statement stating it had not received a proposal and there are no ongoing discussions regarding the terms of any transaction.
  3. On July 20, 2022,  Reuters reported that New Relic (NEWR) targeted by activist hedge fund Jana Partners, is preparing to explore a potential sale following interest from private equity firms.

SPAC Arbitrage

There was one new SPAC combination announced last week, three business combinations were completed and two terminated. You can find new SPAC business combinations in our SPACs tool here.

New Business Combinations

  1. On July 21, 2022, ZyVersa Therapeutics, a clinical stage specialty biopharmaceutical company and Larkspur Health Acquisition (LSPRentered into a definitive business combination agreement.


  1. On July 18, 2022, ITHAX Acquisition Corp. announced the completion of its business combination with Mondee Holdings (MOND).
  2. FaZe Clan (FAZEcompleted its business combination with B. Riley Principal 150 Merger Corp.
  3. OPAL Fuels (OPALcompleted its previously announced business combination with ArcLight Clean Transition Corp. II.


  1. On July 19, 2022, Aesther Healthcare Acquisition (AEHAmutually terminated its combination agreement with automotive component manufacturer United Gear & Assembly.
  2. On July 20, 2022, Fortune Rise Acquisition (FRLAmutually terminated its combination with crypto mining business VCV Power Sigma.

Merger Arbitrage

Weekly Spread Changes:

The table below shows weekly spread changes between July 15 and July 22, 2022.

Company Quote
Last Week
Spread Change
RDBX3.05Chicken Soup for the Soul Entertainment, Inc. (CSSE)9.11-74.01%-82.18%8.17%All Stock
EMCF33.48Farmers National Banc Corp. (FMNB)15.46-0.72%-6.67%5.95%All Stock
SAVE24.02Frontier Group Holdings, Inc. (ULCC)11.125.74%2.99%2.75%Cash Plus Stock
SIMO85.75MaxLinear, Inc. (MXL)38.8226.65%24.30%2.35%Cash Plus Stock
TEN18.85Apollo Global Management, Inc. (APO)53.946.10%3.95%2.15%All Cash
GSV0.3261Orla Mining Ltd. (ORLA)2.64-3.42%0.01%-3.43%All Stock
TGNA20.91Standard General L.P. (N/A)14.78%18.81%-4.03%Special Conditions
BKI65.03Intercontinental Exchange, Inc. (ICE)99.1130.71%35.78%-5.07%Special Conditions
EXTN3.72Enerflex Ltd. (EFX.TO)5.2611.79%18.29%-6.50%All Stock
TWTR39.84Elon Musk (N/A)36.04%43.61%-7.57%All Cash

Deal Statistics:

Total Number of Deals Closed in 2022105
Total Number of Deals Not Completed in 20225
Total Number of Pending Deals
Cash Deals52
Stock Deals21
Stock & Cash Deals3
Special Conditions10
Total Number of Pending Deals86
Aggregate Deal Consideration$991.34 billion

New Deals:

  1. The acquisition of 1Life Healthcare (ONEM) by Amazon (AMZN) for $3.9 billion or $18 per share in cash. We added ONEM as a potential deal to the Deals in the Works section on July 5, 2022 and the price after the news of the potential deal came out was $10.34.
  2. The acquisition of Hanger (HNGR) by Patient Square Capital for $1.25 billion or $18.75 per share in cash.

Deal Updates:

  1. On July 15, 2022, the DOJ granted early termination of the waiting period under the HSR Act with respect to the merger between Mandiant (MNDT) and Alphabet (GOOG).
  2. July 18, 2022: According to The Wall Street Journal, the Justice Department is discussing with Cargill and Continental Grain, potential concessions that could clear the way for the companies to acquire poultry processor Sanderson Farms (SAFM).
  3. On July 19, 2022, Bristol Myers Squibb (BMY) announced that it has extended the expiration date of its offer to acquire Turning Point Therapeutics (TPTX) to August 15, 2022.
  4. July 19, 2022: According to The Wall Street Journal, Twitter (TWTRwon its first legal fight against Elon Musk on Tuesday when a Delaware judge granted the company’s request to fast-track its lawsuit seeking to compel Elon Musk to complete his $44 billion purchase of the social-media site.
  5. On July 20, 2022, shareholders of Emclaire (EMCFvoted to approve the agreement and plan of merger with Farmers National Banc Corp (FMNB).

Closed Deals:

Over $30 billion worth of active M&A deals were completed last week.

  1. The acquisition of PS Business Parks (PSB) by Blackstone (BX) on July 20, 2022. It took 86 days for this deal to be completed.
  2. The acquisition of ServiceSource International (SREV) by Concentrix Corporation (CNXC) on July 20, 2022. It took 72 days for this deal to be completed.
  3. The acquisition of Healthcare Trust of America (HTA) by Healthcare Realty Trust Incorporated (HR) on July 21, 2022. It took 143 days for this deal to be completed.
  4. The acquisition of Vonage Holdings (VG) by Ericsson (ERIC) on July 21, 2022. It took 241 days for this deal to be completed.
  5. The acquisition of Natus Medical Incorporated (NTUS) by ArchiMed on July 21, 2022. It took 94 days for this deal to be completed.
  6. The acquisition of Sanderson Farms (SAFM) by Cargill and Continental Grain Company on July 22, 2022. It took 94 days for this deal to be completed.

Top 10 deals with largest spreads:

Please do your own due diligence on deals with large spreads. Some of these large spreads might be related to regulatory issues or because of the way the deal is structured. We classify some of these deals as “special situation” deals in our merger arbitrage tool and provide additional details to help with the analysis. There may be unique situations related to special dividends, spinoffs, proration, etc. that need to be accounted for when looking at these spreads.

TYME07/05/2022Syros Pharmaceuticals, Inc. (SYRS)$0.41$0.30112/31/202236.59%83.48%
TWTR04/25/2022Elon Musk (N/A)$54.20$39.8412/31/202236.04%82.23%
BKI05/04/2022Intercontinental Exchange, Inc. (ICE)$85.00$65.0306/30/202330.71%32.87%
SIMO05/05/2022MaxLinear, Inc. (MXL)$108.60$85.7506/30/202326.65%28.53%
VMW05/26/2022Broadcom Inc. (AVGO)$142.50$113.604/30/202325.44%33.16%
SJR03/15/2021Rogers Communications Inc. (RCI)$32.40$26.9409/30/202220.27%108.79%
ATVI01/18/2022Microsoft Corporation (MSFT)$95.00$79.2306/30/202319.90%21.30%
NLSN03/29/2022Evergreen Coast Capital Corporation (N/A)$28.00$23.9112/31/202217.11%39.02%
CHNG01/06/2021UnitedHealth Group Incorporated (UNH)$27.75$23.8912/31/202216.16%36.86%
AUY05/31/2022Gold Fields Limited (GFI)$5.34$4.6112/31/202215.84%36.12%

List of all pending deals:

The list of all pending deals is only available to InsideArbitrage Premium and Plus members.

Target VolumeEstimated
Closing Date
+TYME7/05/22Syros Pharmaceuticals, Inc. (SYRS)All Stock$67.2 M$0.41$0.301536,08612/31/2236.59%84.01%
+TWTR4/25/22Elon Musk (N/A)All Cash$44 B$54.20$39.8424,868,50812/31/2236.04%82.74%
+BKI5/04/22Intercontinental Exchange, Inc. (ICE)Special Conditions$16 B$85.00$65.03284,4416/30/2330.71%32.97%
+TMX12/14/21Rentokil Initial plc (RTOKY)Special Conditions$6.7 B$55.00$42.731,380,2749/30/2228.72%156.43%
+SIMO5/05/22MaxLinear, Inc. (MXL)Cash Plus Stock$8 B$108.60$85.75194,6106/30/2326.65%28.61%
+VMW5/26/22Broadcom Inc. (AVGO)Special Conditions$69 B$142.50$113.6953,4724/30/2325.44%33.28%
+SJR3/15/21Rogers Communications Inc. (RCI)Special Conditions$26 B$32.40$26.94375,1989/30/2220.27%110.41%
+ATVI1/18/22Microsoft Corporation (MSFT)All Cash$68.7 B$95.00$79.232,888,8536/30/2319.90%21.37%
+NLSN3/29/22Evergreen Coast Capital Corporation (N/A)All Cash$16 B$28.00$23.91658,65912/31/2217.11%39.27%
+CHNG1/06/21UnitedHealth Group Incorporated (UNH)All Cash$13.28 B$27.75$23.893,109,15812/31/2216.16%37.09%
+AUY5/31/22Gold Fields Limited (GFI)All Stock$6.7 B$5.34$4.6115,204,48412/31/2215.84%36.35%
+FSTX6/23/22invoX Pharma (N/A)All Cash$161 M$7.12$6.17155,02912/31/2215.40%35.35%
+TSEM2/15/22Intel Corporation (INTC)All Cash$5.4 B$53.00$45.96244,9712/15/2315.32%27.27%
+TGNA2/22/22Standard General L.P. (N/A)Special Conditions$8.6 B$24.00$20.91708,50412/31/2214.78%33.92%
+BRG12/20/21Blackstone Real Estate (N/A)Special Conditions$3.6 B$29.85$26.16330,3989/30/2214.11%76.84%
+GSMG7/11/22Cheers Inc (N/A)All Cash$105.59 M$1.55$1.36246,02312/31/2213.97%32.07%
+FHN2/28/22The Toronto-Dominion Bank (TD)Special Conditions$13.4 B$25.00$21.961,757,97911/27/2213.84%40.42%
+EXTN1/24/22Enerflex Ltd. (EFX.TO)All Stock$735 M$4.16$3.7264,0759/30/2211.77%64.10%
+RDUS6/23/22Gurnet Point Capital (N/A)All Cash$890 M$11.00$10.06811,3949/30/229.34%50.90%
+HLG5/09/22Hailiang Education International Limited (N/A)All Cash$368.89 M$14.31$13.129299/30/229.07%49.41%
+BLCT4/30/22Multelements Limited (N/A)All Cash$60 M$1.60$1.4827,10012/31/228.11%18.61%
+USWS6/21/22ProFrac Holding Corp. (PFHC)All Stock$546.29 M$0.88$0.8149163,01912/31/227.88%18.08%
+MGI2/15/22Madison Dearborn Partners, LLC (N/A)All Cash$1.8 B$11.00$10.27438,96412/31/227.11%16.32%
+PNM10/21/20Avangrid, Inc. (AGR)All Cash$8.05 B$50.30$46.98285,7769/30/227.07%38.50%
+TEN2/23/22Apollo Global Management, Inc. (APO)All Cash$7.1 B$20.00$18.851,163,11212/31/226.10%14.00%
+SJI2/24/22Infrastructure Investments Fund (N/A)All Cash$8.1 B$36.00$33.95480,56412/31/226.04%13.86%
+SAVE2/07/22Frontier Group Holdings, Inc. (ULCC)Cash Plus Stock$6.6 B$25.40$24.021,447,08712/31/225.74%13.17%
+MILE11/08/21Lemonade (LMND)All Stock$201.47 M$1.01$0.9552382,4627/31/225.40%328.39%
+ONEM7/21/22Amazon (AMZN)All Cash$3.9 B$18.00$17.1514,706,55812/31/224.96%11.38%
+IS7/13/22Unity (U)All Stock$3.61 B$3.97$3.812,243,15112/31/224.52%10.37%
+VIVO7/07/22SD Biosensor and SJL Partners (N/A)All Cash$1.53 B$34.00$32.61414,60812/31/224.26%9.78%
+CTEK5/23/22Clearwater Compliance LLC (N/A)All Cash$13.9 M$1.25$1.281,0819/30/224.17%22.70%
+LHCG3/28/22Optum (N/A)All Cash$6.2 B$170.00$163.24134,61512/31/224.14%9.51%
+TUFN4/06/22Turn/River Capital (N/A)All Cash$570 M$13.00$12.55538,3599/30/223.59%19.53%
+TGA7/14/22VAALCO Energy, Inc. (EGY)All Stock$273 M$3.33$3.22732,59412/31/223.41%7.83%
+ROG11/02/21DuPont de Nemours, Inc. (DD)All Cash$5.2 B$277.00$267.89113,2209/30/223.40%18.53%
+ATC7/01/21MKS Instruments, Inc. (MKSI)Cash Plus Stock$6.5 B$22.25$21.55197,0939/30/223.26%17.75%
+FBC4/26/21New York Community Bancorp, Inc. (NYCB)All Stock$2.6 B$37.82$36.7311,19510/31/223.06%11.39%
+ZEN6/24/22Permira and Hellman & Friedman LLC (N/A)All Cash$10.2 B$77.50$75.251,997,72612/31/222.99%6.86%
+CTXS1/31/22Vista Equity Partners and Elliott Investment Management LP (N/A)All Cash$16.5 B$104.00$101.48452,8467/31/222.48%151.06%
+SAIL4/11/22Thoma Bravo (N/A)All Cash$6.9 B$65.25$63.75572,29212/31/222.35%5.40%
+EURN7/11/22Frontline Ltd. (FRO)All Stock$4.08 B$13.30$131,211,75912/31/222.28%5.24%
+RNDB3/28/22Hometown Financial Group, Inc. (N/A)All Cash$146.5 M$27.00$26.42146712/31/222.19%5.03%
+SMED7/13/22Aurora Capital Partners (N/A)All Cash$139.85 M$8.75$8.58240,7699/30/221.98%10.79%
+USAK6/24/22DB Schenker (N/A)All Cash$435 M$31.72$31.16133,61312/31/221.80%4.13%
+BHVN5/10/22Pfizer Inc. (PFE)Special Conditions$11.6 B$148.50$145.95578,2403/31/231.75%2.56%
+STON5/25/22Axar Capital Management, LP (N/A)All Cash$927.7 M$3.50$3.4457,7339/30/221.74%9.50%
+HNGR7/21/22Patient Square Capital (N/A)All Cash$1.25 B$18.75$18.4321,534,74312/31/221.74%3.99%
+AXU7/05/22Hecla Mining Company (HL)All Stock$75.24 M$0.44$0.4356423,7799/30/221.73%9.40%
+SWCH5/11/22DigitalBridge Group, Inc. (DBRG)All Cash$11 B$34.25$33.681,725,45112/31/221.69%3.89%
+MN4/01/22Callodine (N/A)All Cash$137.1 M$12.85$12.65121,7499/30/221.58%8.61%
+HMLP5/25/22Höegh LNG Holdings Ltd. (N/A)All Cash$167.6 M$9.25$9.1255,03012/31/221.43%3.27%
+RFP7/06/22The Paper Excellence Group (N/A)Special Conditions$2.7 B$20.50$20.23844,8596/30/231.33%1.43%
+TPTX6/03/22Bristol Myers Squibb (BMY)All Cash$1.66 B$76.00$75901,3939/30/221.33%7.26%
+NPTN11/04/21Lumentum Holdings Inc. (LITE)All Cash$745.24 M$16.00$15.79650,27112/31/221.33%3.05%
+MNDT3/08/22Alphabet Inc. (GOOG)All Cash$5.4 B$23.00$22.71,481,36512/31/221.32%3.03%
+BKEP4/22/22Ergon, Inc. (N/A)All Cash$199.72 M$4.65$4.59543,9269/30/221.31%7.12%
+Y3/21/22Berkshire Hathaway (BRK.A)All Cash$11.6 B$848.02$837.1540,69112/31/221.30%2.98%
+GCP12/06/21Saint-Gobain (N/A)All Cash$2.3 B$32.00$31.59347,35912/31/221.30%2.98%
+CVET5/25/22Clayton, Dubilier & Rice and TPG Capital (N/A)All Cash$4 B$21.00$20.762,341,87912/31/221.16%2.65%
+UMPQ10/12/21Columbia Banking System, Inc. (COLB)All Stock$4.5 B$17.47$17.291,256,4719/30/221.07%5.82%
+DRE6/13/22Prologis, Inc. (PLD)All Stock$26 B$60.28$59.691,380,84412/31/220.98%2.26%
+RTLR5/16/22Diamondback Energy, Inc. (FANG)All Stock$2.36 B$12.82$12.7750,2569/30/220.93%5.04%
+CTT5/31/22PotlatchDeltic Corporation (PCH)All Stock$1.06 B$10.76$10.68378,83312/31/220.79%1.81%
+LJPC7/11/22Innoviva, Inc. (INVA)All Cash$149 M$6.23$6.19201,4028/11/220.65%13.87%
+OBCI6/22/22OneWater Marine Inc. (ONEW)All Cash$125 M$13.08$1311,5539/30/220.62%3.35%
+CNVY6/21/22TPG Capital (N/A)All Cash$1.1 B$10.50$10.4463,80212/31/220.57%1.32%
+POLY3/28/22HP Inc. (HPQ)All Cash$3.3 B$40.00$39.78629,25412/31/220.55%1.27%
+MTOR2/22/22Cummins Inc. (CMI)All Cash$3.7 B$36.50$36.33815,63012/31/220.47%1.07%
+NSR5/02/22Sandstorm Gold Ltd. (SAND)All Stock$585.29 M$6.66$6.6326,80012/31/220.38%0.87%
+ACC4/19/22Blackstone (BX)All Cash$12.8 B$65.47$65.25734,9399/30/220.34%1.84%
+MANT5/16/22The Carlyle Group Inc. (CG)All Cash$4.2 B$96.00$95.74268,84512/31/220.27%0.62%
+WBT7/14/21Ali Holding S.r.l. (N/A)All Cash$4.8 B$24.00$23.981,068,7087/28/220.08%10.15%
+CNR3/07/22Clayton, Dubilier & Rice (N/A)All Cash$5.8 B$24.65$24.663,280,1059/30/22-0.04%-0.22%
+CDR3/02/22Wheeler Real Estate Investment Trust, Inc. (WHLR)All Cash$291.3 M$29.00$29.04174,3579/30/22-0.14%-0.75%
+STCN6/13/22Steel Partners Holdings L.P. (SPLP)All Cash$519.36 M$1.35$1.355121,35712/31/22-0.37%-0.85%
+ABTX11/10/21CBTX, Inc. (CBTX)All Stock$1.5 B$40.92$41.1866,4329/30/22-0.63%-3.43%
+SRLP6/02/22Hartree Partners, LP (N/A)All Cash$1.44 B$19.00$19.1311,4349/30/22-0.68%-3.70%
+EMCF3/24/22Farmers National Banc Corp. (FMNB)All Stock$105 M$33.24$33.481,10212/31/22-0.72%-1.65%
+PTRS11/04/21OceanFirst Financial Corp. (OCFC)All Stock$186 M$8.95$9.1719,4799/30/22-2.38%-12.96%
+EPZM6/27/22Ipsen (N/A)Special Conditions$247 M$1.45$1.491,077,7219/30/22-2.68%-14.62%
+GSV6/13/22Orla Mining Ltd. (ORLA)All Stock$138.14 M$0.31$0.3261370,4408/31/22-3.42%-33.72%
+PCSB5/24/22Brookline Bancorp, Inc. (BRKL)All Stock$313 M$18.09$19.2631,57612/31/22-6.06%-13.91%
+HMTV5/09/22Gato Investments LP (N/A)All Cash$658.07 M$7.00$7.9229,6679/30/22-11.62%-63.28%
+ELSE6/13/22Mobile X Global, Inc. (N/A)All Cash$9.89 M$4.83$5.70015,8319/30/22-15.26%-83.16%
+RDBX5/11/22Chicken Soup for the Soul Entertainment, Inc. (CSSE)All Stock$182.9 M$0.79$3.054,457,85912/31/22-74.01%-169.91%

Disclaimer: I have long positions in Biohaven Pharmaceutical (BHVN), Twitter (TWTR), First Horizon (FHN), Tower Semiconductor (TSEM), TEGNA (TGNA) and Bluerock Residential Growth REIT (BRG). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.