M&A wrap: Amazon, Health Navigator, PTC, Rothschild, Livingstone, Vance Street
Amazon.com Inc. (Nasdaq: AMZN) has bought digital healthcare company Health Navigator, marking Amazon's second medical-related deal. The company bought online pharmacy PillPack in 2018. Health Navigator was founded in 2014 by CEO David Thompson, who is known for developing Schmitt-Thompson, which became the standard way for nurses and medical professionals to guide patients to the right place, usually through call centers. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) to offer services such as remote diagnoses, and with triage, in helping patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Health Navigator will join Amazon Care, which is designed to serve as a medical benefit for employees and helps provide care virtually, through a video visit and with home visits if additional care is needed. “The service eliminates travel and wait time, connecting employees and their family members to a physician or nurse practitioner through live chat or video, with the option for in-person follow up services from a registered nurse ranging from immunizations to instant strep throat detection,” an Amazon spokesperson told CNBC.
PTC (Nasdaq: PTC) is buying Onshape for $470 million. Onshape says it is a pioneer is uniting a Software-as-a-Service approach to computer-aided design with data management and collaboration tools. Barclays is advising PTC.
Rothschild & Co. is acquiring Livingstone's U.K. operations. Livingstone's offices in Beijing, Chicago, Dusseldorf, Los Angeles, Madrid and Stockholm are not part of the deal. Livingstone, a mid-market M&A and debt advisory firm, said it will look for other global growth opportunies in Europe and Asia.
Vance Street Capital has acquired a majority stake in Eirtech Aviation Services. The latter offers enginneering and manufacturing services to airlines and airplane leasing companies. Neuberger Berman Private Credit invested alongside Vance Street. O’Melveny & Myers LLP and Arthur Cox advised Vance Street. KPMG, McCann FitzGerald and Cooley LLP advised the target.
ChrysCapital-backed Infoagain is buying digital consulting firm Revel.
O2 Investment Partners-backed Frontier Dental Laboratories has invested NuArt Dental LLC, a full-service dental laboratory.
Overall M&A activity in the third quarter saw $600 billion worth of deals closed, according to PitchBoook. So far in 2019, more than 8,000 deals have closed, worth about $1.6 trillion. The activity is on pace with the first three quarters of 2018.
Deal value and volume in the oil and gas sector declined significantly in the third quarter, according to a PwC report. M&A value fell to $37 billion, compared to $123 billion from the 2018 third quarter. Deal volume was at 36 transactions, compared to 45 deals in the 2018 third quarter.
Kim Kaselionis has joined middle-market advisory firm AssayCS as a managing director. Kaselionis is the former CEO of Circle Bank.
Doug King was hired by Arlington Capital Partners-backed medical device maker Riverpoint Medical as CEO. King most recently served as president of Medtronic's Spinal business.
The private equity model has held up very well over the decades, continuing to outperform the public markets, even as economic cycles come and go. But the rate of growth has slowed, leading PE firms to seek adjacent areas of business to expand. As PE firms face increased pressure to produce higher returns on their investments, many of them are turning to a familiar area of business: lending. Read the full story: Private equity firms are becoming lenders. Here’s why.
It’s a milestone year for the Blackstone Group Inc. (NYSE: BX), which transitioned from a publicly traded partnership to a corporation on July 1. The New York firm announced the final close of its latest global real estate fund recently. With $20.5 billion of total capital commitments, Blackstone Real Estate Partners IX is the largest real estate fund ever raised. Mergers & Acquisitions spoke with Stephen A. Schwarzman, the firm’s co-founder, chairman and CEO. Read the full story: "Complete control" is the beauty of private equity, says Blackstone's Stephen A. Schwarzman.
Bank M&A has been soaring, creating the perfect backdrop for Piper Jaffray’s announced acquisition of Sandler O’Neill & Partners LP. “There has been a lot of consolidation in the bank space,” Piper Jaffray CEO Chad Abraham told Mergers & Acquisitions. “But there are still 5,000 banks, and we expect the pace of consolidation to continue.” For analysis of the deal, see Counting on bank M&A: Why Piper Jaffray bought Sandler O'Neill.
Looking for a glimpse of what’s to come in the private equity industry? Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. As the PE industry undergoes a generational shift, and many firm founders retire, it’s well worth getting to know these emerging leaders, including Branford's Austin Collier, Sterling Partners' Shawn Domanic and Summit Partners' Sophia Popova. For profiles and video interviews, see Meet Mergers & Acquisitions' 2019 Rising Stars of Private Equity. For Q&As, see 10 Rising Stars of Private Equity tell their tales.
To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most Influential Women in Mid-Market M&A. For more on the timeline and nomination process for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.
ACG Charlotte is hosting Deal Crawl at the Mint Museum in Charlotte, North Carolina, Nov. 6-7.
The Third Annual Women in Alternative Investments Career Forum is taking place at the New York Hilton on Nov. 8.
ACG New York is hosting Middle Market Week in New York from Nov. 11-15. The 17th Annual Private Equity Wine Tasting Gala takes place on Nov. 13 at Gotham Hall.