Hi! Aaron Weinman reporting from New York. Amazon's $3.9 billion purchase of One Medical could net Goldman Sachs and Morgan Stanley millions-of-dollars in advisory fees apiece. It comes as investment banks fall under the microscope for a slow year in dealmaking.

Let's unpack who at the two Wall Street giants put this deal together.

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1. Goldman Sachs and Morgan Stanley got the nod for Amazon's $3.9 billion purchase of One Medical. It's a welcome payday for the pair especially after investment-banking teams across Wall Street shouldered much of the pain in last quarter's earnings cycle.

Goldman Sachs advised Amazon — rekindling a relationship that spans back to 2017,  when the company bought Whole Foods Market for $13.7 billion — and Morgan Stanley advised One Medical on the sale, Insider has learned.

Morgan Stanley has advised One Medical at least three times now, following up its lead role on the clinic operator's $245 million initial public offering in January 2020, and its $2.1 billion acquisition of Iora Health in June last year.

Amid a dearth of M&A activity, a deal of this size should net each bank millions of dollars in fees. Investment banks typically earn between 2% to 4% (of the enterprise value of a transaction) in revenues for their advisory services. A sought-after client like Amazon, however, might lead banks to lower their price in exchange for the tech giant's business.

Amazon's interest in One Medical, meanwhile, started back in the spring of 2022, a person with knowledge of the process told Insider. But the company was not seeking a buyer at the time, this person said.

News of Amazon's acquisition sent One Medical's share price to more than $17 per share from a little over $10 last week.

For the full story on the genesis of this deal, and the bankers who helped piece the transaction together, check out this report from Insider's Reed Alexander, and myself.

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Foto: Robert A Tobiansky/Getty; Boris Zhitkov/Getty; Jake Wyman/Getty; José Miguel Hernández Hernández/Getty; Spencer Platt/Getty; Twitter; Anna Kim/Insider

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Curated by Aaron Weinman in New York. Tips? Email [email protected] or tweet @aaronw11. Edited by Hallam Bullock (tweet @hallam_bullock) in London.

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