1Life Healthcare to buy Iora Health in deal valued at $2.1 billion

(Reuters) -Digital health provider 1Life Healthcare Inc said on Monday it would acquire privately held Iora Health in an all-stock transaction valued at about $2.1 billion to benefit from its Medicare Advantage members.

Shareholders of Iora Health, a primary health provider that caters to older adults, will receive 56.1 million shares of 1Life Healthcare common stock and will own about 26.75% of the combined company.

The deal is expected to close in the late third quarter or the fourth quarter of 2021.

1Life Healthcare, which has 598,000 members, said the deal will help them reach a combined 28 U.S. markets across commercial and Medicare populations and expand potential market opportunity to $870 billion across the two segments.

Reporting by Dania Nadeem in Bengaluru; Editing by Maju Samuel