Private equity firm Carlyle Group agreed yesterday to invest up to $350m in 1Life Healthcare, the US-based owner of care provider One Medical that counts internet technology group Alphabet as an investor.
Carlyle provided $220m in direct funding for the company and is buying $130m of shares in a secondary transaction, making the investment through its Carlyle Partners VII fund, though it told Forbes the secondary portion has not yet closed.
One Medical runs a subscription-based primary care service that provides access to doctors and diagnostic services across 72 health centres in Boston, Chicago, Los Angeles, New York, Phoenix, San Francisco, Seattle and Washington DC, with four to open in San Diego in 2019.
Subscribers can also use a telehealth platform, and schedule appointments and request and renew prescriptions through the company’s app. The service is available to individual users but 1Life claims more than 1,000 businesses have added it to their employee health benefits.
Amir Rubin, president and CEO of 1Life, told TechCrunch it plans to use the funding to double the number of offices in the US while strengthening its data technology and increasing its medical staff. He did not disclose which investors are selling shares to Carlyle.
The company has now raised $400m in equity funding, $30m of which came in a 2013 series F round featuring Alphabet subsidiary GV and existing investors Benchmark, DAG Ventures, Maverick Capital and Oak Investment Partners.
The 2013 round was followed by a $40m round led by Redmile Group in 2014 that included unnamed existing backers, before investment bank JP Morgan’s Asset Management unit led a $65m round the following year that valued 1Life at more than $1bn.
Latham & Watkins was legal adviser for the deal, which followed reports on Monday that Carlyle was in talks to invest $300m.