Exit watch, Feb. 19, 2007

Diversa pays $175M for ethanol company

Diversa Corp.

(Nasdaq: DVSA) has agreed to acquire Celunol Corp., a Dedham, Mass.-based producer of ethanol and specialty chemicals created from cellulosic biomass. The deal is valued at about $175 million, including 15 million Diversa shares and $20 million in debt funding. Diversa stockholders will retain ownership of about 76% of the combined company, and Celunol stockholders and option holders will own about 24 percent. Celunol last year raised about $14 million in funding from Braemar Energy Ventures, Charles River Ventures and Rho Ventures.

GoFish lures youth site to acquisition

GoFish.com

(OTC BB: GOFH) has agreed to acquire Bolt Media, a youth-oriented operator of a user-generated content website, for up to $30 million in GoFish stock. Bolt has raised more than $62 million in VC funding since its 1996 inception, including an early 2000 infusion at a post-money valuation of about $335 million, and a deal the following June that valued the company at less than $34 million. Backers include Fremont Partners, Highland Capital Partners, Moore Capital, Oak Investment Partners, AOL, Ford Motor Co., Comcast Interactive Capital and Sandler Capital Management.

Zimmer nabs surgical instruments company

Zimmer Holdings Inc.

(NYSE: ZMH) has agreed to acquire Endius Inc., a Plainville, Mass.-based maker of steerable endoscopic surgical instruments. No pricing details of the all-cash deal were disclosed. Endius had raised about $74 million in VC funding since 1996 from such firms as Advanced Technology Ventures, Capstone Ventures, Carlyle Venture Partners, Dauphin Capital Partners, EGS Healthcare, Hickory Venture Capital Corp., Hillman Co., Morgan Stanley, Polaris Venture Partners, Rock Hill Ventures, Senmed Medical Ventures, Trellis Health Ventures and the Venture Capital Fund of New England.

Cisco buys Five Across

Cisco Systems Inc. (Nasdaq: CSCO) has agreed to acquire Five Across Inc., a San Francisco-based social networking platform. No financial terms were disclosed. Five Across had raised $2 million in VC funding from Granite Ventures and an affiliated fund.

EA acquires karaoke website

Video game maker Electronic Arts Inc. (Nasdaq: ERTS) has acquired SingShot Media, a San Francisco-based online karaoke community. No financial terms were disclosed. SingShot raised just over $1 million in Series A funding last spring from Trans Cosmos USA.

Ericsson fiber access provider

Ericsson

(Nasdaq: ERIC) has acquired Entrisphere Inc., a Santa Clara, Calif.-based provider of fiber access technology. No financial terms were disclosed. Entrisphere had raised about $145 million in VC funding since its 2000 inception from such firms as Accel Partners, Benchmark Capital, CDP Capital, Crosspoint Venture Partners, DAG Ventures, El Dorado Ventures, Lighthouse Capital Partners, Ontario Teachers Pension Plan, Star Ventures and VantagePoint Venture Partners.

Digital publisher sold

Gilvest

has acquired Zinio Systems Inc., a San Francisco-based digital publishing and distribution platform for magazines and books. No financial terms were disclosed. Zinio had raised about $34 million in total VC funding since 2001 from such firms as New Enterprise Associates, Intel Capital, Palisades Ventures, Apax Partners, North Bridge Venture Partners and Commonwealth Capital Ventures. Zinio sold its magazine e-commerce site BlueDolphin.com last month to M2 Media Group for an undisclosed amount.

Cytec buys Adeza for $450M

Cytec Corp.

(Nasdaq: CYTC) has agreed to acquire women’s health product developer Adeza (Nasdaq: ADZA) for $24 per share. The total deal is valued at about $450 million, and is expected to close by the end of March. Adeza raised about $33.5 million in VC funding before going public in 2004, but still counts Enterprise Partners Venture Capital and Sprout Group among its larger shareholders.