M&A wrap: Amazon, PillPack, Health Navigator, Audax, Clearlake, Gryphon, Riverside, M&A Mid-Market Award Nominations

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Artificial intelligence in healthcare saw about $4 billion in funding across 367 deals in 2019, according to data and research firm CB Insights. Amazon.com Inc. (Nasdaq; AMZN) is no exception. The tech conglomerate is using its recent deals for Health Navigator and PillPack to launch new software services in healthcare. Health Navigator works with companies like Microsoft Corp. (Nasdaq: MSFT) in offering services such as remote diagnoses, and with triage to help patients figure out whether to stay at home, see a doctor or go straight to the emergency room. Health Navigator has joined Amazon Care, which is designed to serve as a medical benefit for employees and helps provide care virtually through a video visit, or home visits, if additional care is needed. PillPack is also growing within Amazon. The company, now called PillPack by Amazon Pharmacy, is working with Blue Cross Blue Shield of Massachusetts to launch a new pharmacy integration app that helps members manage prescriptions by using Amazon’s own Internet pharmacy. BCBSMA is the first health plan provider to offer this type of integration with PillPack. Read our full coverage: How Amazon is using M&A to revolutionize healthcare.

The deadline for Mergers & Acquisitions 13th Annual M&A Mid-Market Awards nominations is fast approaching. The awards honor leading dealmakers and deals that set the standard for transactions in the middle market in 2019. Last year’s winners included TA Associates, Nike, Fortive and Hollie Haynes, who took home Dealmaker of the Year for raising a second fund for Luminate Capital Partners. Nominations are accepted only through our electronic forms. The deadline is Friday, Feb. 7, 2020. There is no fee. For more information on the nomination process and what we seek in winning candidates, see Call for nominations: Submissions for the M&A Mid-Market Awards due Feb. 7.

DEAL NEWS
Audax Private Equity has acquired a Kofile. The target works with U.S. goverment agencies in providing them with information management and access systems. Shea & Co. and Gunderson Dettmer advised Kofile.

Clearlake Capital is buying XCessories & Services LLC from Olympus Partners. XCessories provides spray-on and coating services to the automotive sector. UBS advised Clearlake. Jefferies and Harris Williams advised the target.

Enlightenment Capital-backed Trowbridge has acquired Intelliware Systems. The target offers cyber, intelligence, and information technology services to the Federal Bureau of Investigation, U.S. Marshals Service, Department of Homeland Security and Department of State. KippsDeSanto advised IntelliWare.

Gryphon Investors-backed Hepaco has purchased Evergreen AES, which offers emergency response and environmental services across Kentucky, Tennessee, Indiana and West Virginia. Lynch, Cox, Gilman & Goodman PSC advised AES, while Moore & Van Allen advised Hepaco.

The Riverside Co. has invested in LMG Holdings. The latter provides ignition interlock devices, which are used to help prevent drunk driving.

Incline Equity Partners has invested in BFG Supply, a provider of third-party and branded products to professional growers, lawn & garden centers, and other green industry participants.

Frontenac has recapitalized education content company XanEdu. Monroe Capital provided financing.

The Prelude Network is merging with Houston Fertility Institute and Aspire Fertility to form a new fertility services company called Aspire Houston Fertility Institute.

Wayforth has merged with on-demand moving and storage company Livible.

Voxx International Corp. has acquired Vehicle Safety Holding Corp. from Superior Capital Partners. Angle Advisors advised the target.

Koch Equity Development is acquiring the stake in does not own in cloud sofware company Infor from Golden Gate Capital.

DEAL TRENDS
Private equity firms lost interest in the mining world last year, pumping 75 percent less money into the sector as they focused more on funding existing investments. Investments dropped to $500 million from $2 billion a year earlier, according to a report by law firm Bryan Cave Leighton Paisner. That was the lowest amount since the company started tracking the space in 2013. Private equity poured money into the mining sector several years ago when big producers were forced to shed assets amid a collapse in commodity prices. Read the full story by Bloomberg News: Private equity abandons mining as deal opportunities dry up.

Pushed by a groundbreaking California law mandating it, more companies are putting women on their public corporate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board diversity. Investors are taking notice and trying to get ahead of the curve. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors translates to a 1.2 percent median productivity above competitors. Read the full guest article by Venable's Belinda Martinez Vega: Why businesses are adding women to their boards.

PEOPLE MOVES
Nicodemo Esposito was hired by investment bank Cascadia Capital as a managing director. He was most recently with Equiteq.

Melanie Whelan, former CEO of SoulCycle, has joined Summit Partners’ executive-in-residence program. She will help the investment firm find investment opportunities in the consumer and retail sectors.

Ryan Supple has joined investment firm Graycliff Partners as a principal. He was previously with HKW.

Michael Nelson has been named head of manufactured products and services investing at Pritzker Private Capital and David Gau has been named head of operations. Eric Kieras has joined the firm as a principal; Carter Cast has been hired as a senior advisor; and Meghan Slent has joined as head of partner relations and marketing.

FEATURED CONTENT
If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.

Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:

Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald's, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering

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 s for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.

EVENTS
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.

ACG Raleigh Durham's 18th annual capital conference is being from March 31-April 1 at the Raleigh Marriott Crabtree Hotel in Raleigh, North Carolina.

InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.

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