Exit watch, Dec. 18, 2006

Forest pays $480M for VC-backed Cerexa

Forest Laboratories Inc. (NYSE: FRX) has agreed to acquire Cerexa Inc., an Alameda, Calif.-based developer of injectable antibiotics, for $480 million. The deal includes a potential $100 million milestone payment. The lead product that Forest is acquiring is a hospital-based drug, ceftaroline acetate, that Forest said could reach the market by 2010.

Cerexa raised a $50 million VC round in August 2005 from CDIB BioScience Ventures, Canaan Partners, Domain Associates, EGS Healthcare Capital Partners, Frazier Healthcare Ventures, Montreaux Equity Partners, New Leaf Venture Partners, OrbiMed Advisors and Pappas Ventures.

Galapagos buys genome company
Galapagos NV (Euronext & AIM: GLPG) has agreed to acquire Inpharmatica Ltd., a U.K.-based provider of genome-scale predictive products and services for drug discovery research. The total deal is valued at up to $25 million, including an $8.5 million upfront cash payment. Inpharmatica has raised about $75 million in VC funding since 1998 from such firms as 3i Group, Abingworth Management, Advent Venture Partners, August Equity, GIMV, Gilde, Reed Elsevier Ventures, Unibio Ltd., Genentech and Vertex Management.

Domantis commands $450M in dealGlaxoSmithKline PLC (NYSE: GSK) has agreed to acquire Domantis Ltd., a U.K.-based provider of antibody therapies, for $450 million in cash. Domantis has raised about $83 million in total VC funding from such firm as 3i Group, Novo Nordisk, MC Life Science Ventures, Gray Ghost, Albany Ventures, MVM, ISIS Equity Partners and Peptech Ltd.

TelePacific calls up Arrival
TelePacific Communications, a Los Angeles-based competitive local exchange carrier, has agreed to acquire Arrival Communications, a Bakersfield, Calif.-based CLEC that provides voice and data communications services to businesses throughout Central California. No financial terms were disclosed. Arrival has raised about $52 million in VC funding from such firm as Alta Communications and Housatonic Partners. TelePacific is backed by more than $250 million from such firms as Arena Capital Partners, Clarity Partners, GE Equity, Hillman Co. and Investcorp.

Primavera buys two companies
Primavera Systems Inc., a Bala Cynwyd, Pa.-based provider of project and portfolio management software, has acquired two companies. They include ProSight Inc., a Portland, Ore.-based provider of portfolio analysis solutions, and Pertmaster Ltd., a U.K.-based risk analysis and mitigation solutions company. No financial terms were disclosed for the two deals. Francisco Partners and Insight Venture Partners acquired a majority stake in Primavera earlier this year, while ProSight has raised VC funding from such firms as BRM Capital, Genesis Partners, Giza Venture Capital, Prism Capital and Sequoia Capital.

Midwest freight company driven to sell
Great Hill Partners has agreed to acquire a minority interest in Freightquote Inc., a Lenexa, Kan.-based provider of freight transportation information. Freightquote has raised about $45 million in VC funding since its 1998 inception from such firms as Menlo Ventures and Morgan Stanley Venture Partners.

Micron buys Avago unit
Micron Technology Inc. (NYSE: MU) has acquired the Image Sensor business of Avago Technologies for about $53 million, plus the possibility of additional earn-outs. Avago is a San Jose, Calif.-based semiconductor company owned by KKR and Silver Lake Partners. —PE Week staff