The primary care clinic operator One Medical (NASDAQ: ONEM) has expanded its network size with the acquisition of Boston, Massachusetts-based Iora Health. Under the terms of the agreement, Iora Health shareholders will receive 56.1 million shares of One Medical stock valued at the company’s closing price of $35.59 on June 4, 2021, or approximately $2.1 billion in total deal value. Iora Health shareholders are expected to own approximately 26.75% of the combined company.

Iora Health is a national network of primary care clinics offering holistic, personalized care to patients through online and in-person sessions with individual health coaches. The company provides services such as mental health treatment and primary care for adults 65+ enrolled in Medicare Advantage and other at-risk reimbursement models.

Back in February 2020, Iora Health closed a $126 Million Series F Funding Round. India-based Premji Invest led the funding round and was joined by existing investors Cox Enterprises, Temasek F-Prime Capital, Devonshire Investors, .406 Ventures, Flare Capital Partners, Polaris Partners, and Khosla Ventures

One Medical is a network of primary care clinics offering services such as wellness and prevention, treatment for chronic care conditions, mental health services, child care and LGBTQ+ services.

The deal extends One Medical’s primary care and digital health platform to a total of 28 markets. The combined company is expected to have more than $350 million in annual revenue synergies by 2025 and $30 million in annual net cost synergies by 2025. Perhaps the best advantage of this deal is it gives One Medical a significant presence in the Medicare and Commercial health insurance markets, which is estimated at $870 billion, according to One Medical’s release.