Exit watch, Feb. 26, 2007

Cisco acquires enterprise company

(Nasdaq: CSCO) has agreed to acquire Reactivity Inc., a Redwood City, Calif.-based XML gateway provider for the enterprise. The deal is valued at about $135 million in cash and assumed options of Reactivity, and is expected to close by the end of April.

Reactivity has raised about $50 million in VC funding since 2000, including $24 million in Series A funding at a $52.3 million post-money valuation and a 2003 Series AA recap. Backers include Accel Partners, Austin Ventures, Diamondhead Ventures, JK&B Capital and Maveron.

Cisco’s acquisition of Reactivity follows its buying spree last year when it paid $6.9 billion for set-top vendor Scientific Atlanta (backed by the private equity firm Venture Management Associates) and it purchased, for $90 million, the video-on-demand technology supplier Arroyo Video Solutions (which was funded by Comcast Interactive Capital, DCM – Doll Capital Management, Foundation Capital and Matrix Partners).

3M buys U.K. company

3M (NYSE: MMM) has acquired Acolyte Biomedica Ltd., a Salisbury, U.K.-based provider of an automated microbial detection platform for the detection, diagnosis and treatment of infectious diseases. The all-cash deal included various earn outs, although specific terms were not disclosed. Acolyte had raised VC funding from Angle Technology Group and Circus Capital.

Aceva scooped up by SunGard

has acquired Aceva Technologies, a San Mateo, Calif.-based provider of enterprise applications for revenue and receivables management. No financial terms were disclosed. SunGard was acquired in 2005 by seven private equity firms, while Aceva had raised more than $50 million in VC funding since its 1999 inception from such firms as Sequoia Capital, Accel Partners and Clearstone Venture Partners.

Touch Clarity tapped for acquisition

(Nasdaq: OMTR), an Orem, Utah-based provider of Web analytics, has agreed to acquire Touch Clarity, a London-based on-demand provider of automated behavioral targeting. The deal is valued at more than $51 million, plus about $8.5 million in assumed vested stock options. It is expected to close later this quarter. Touch Clarity has raised about $11 million in VC funding since 2000 from such firms as Alta Berkeley Venture Partners, The Capital Fund, JVP and NewMedia Spark.

LSI buys enterprise storage company

(NYSE: LSI) has agreed to acquire SiliconStor Inc., a Fremont, Calif.-based provider of silicon solutions for enterprise storage. The deal is valued at around $55 million in cash, and is expected to close later this quarter. SiliconStor has raised more than $17 million in VC funding from such firms as APV Technology Partners and VSP Capital.