Exit watch, Oct. 16, 2006

Hedge fund scores on YouTubeGoogle Inc. (Nasdaq: GOOG) has agreed to acquire online video-sharing company YouTube Inc. for about $1.65 billion in stock. YouTube had raised $11.5 million over two rounds of VC funding, from Sequoia Capital and hedge fund Artis Capital Management.

Artis, a San Francisco-based hedge fund, specializes in public and late stage private technology companies.

Artis co-invested in YouTube with Sequoia Capital in the startup’s $8 million Series B this spring, according to a regulatory filing. In two rounds of funding, YouTube raised $11.5 million.

Artis has also invested with Sequoia in other startups, such as fables semiconductor company Open Silicon. And the hedge fund invests in public tech companies, such as WiMAX product maker Alvarion (Nasdaq: ALVR) and software company Synplicity (Nasdaq: SYNP)

Other winners in the YouTube purchase include Stephen Welles, a lawyer with Wilson Sonsini Goodrich & Rosati, who participated in the Series B round.

Serena acquires Pacific EdgeSerena Software Inc., a San Mateo, Calif.-based provider of change governance software, has agreed to acquire Pacific Edge Software Inc., a Bellevue, Wash.-based provider of project and portfolio management solutions. No financial terms were disclosed for the deal. Serena Software is a portfolio company of Silver Lake Partners, while Pacific Edge has raised more than $44 million in VC funding from such firms as Fluke Venture Partners, Northwest Venture Associates, Sequoia Capital, Stanford University, Foundation Capital, Dain Rauscher Corp. and Newbury Ventures.

Automatic buys VirtualEdgeAutomatic Data Processing Inc. (NYSE: ADP) has acquired VirtualEdge Corp., a Yardley, Pa.-based provider of recruiting and talent lifecycle management solutions for HR management. No financial terms were disclosed. VirtualEdge has raised nearly $5 million from Edison Venture Fund and Carmel Associates.

Solsoft sold to French security companyExaProtect, a France-based provider of core security event management, has agreed to acquire Solsoft Inc., a Mountain View, Calif.-based provider of security policy management solutions. No financial terms of the deal were disclosed, except that it is supported by VC backers of both companies. ExaProtect shareholders include CIC Innovation and Elaia Partners, while Solsoft has raised about $46 million from such firms as CITA Gestion, Carlyle European Venture Partners, Credit Agricole Private Equity, Innovacom, Intel Capital, Logispring, Rothschild Ventures, Sofinnova Partners and VSPA.

Kenexa grabs BrassRing for $115MKenexa Corp. (Nasdaq: KNXA) has agreed to acquire BrassRing LLC, a Waltham, Mass.-based provider of talent management solutions. The deal is valued at about $115 million, including $10 million in net cash, and is expected to close later this quarter. BrassRing has raised about $183 million in total VC funding since its 1999 inception, including a $15 million 2001 deal with a $144 million post-money valuation, and a $40 million down-round in 2002 at a $75 million post-money valuation. Backers include Accel Partners, Gannett Co., Kaplan, Tribune Co. and the Washington Post Co.

Pfizer bulks up on PowderMed

Pfizer Inc. (NYSE: PFE) has agreed to acquire PowderMed Inc., a U.K.-based developer of DNA-based vaccines for such conditions as influenza and chronic viral disease. No financial terms were disclosed. PowderMed backers include Abingworth Management, Advent Venture Partners, Isis College Fund, Oxford Bioscience Partners and SV Life Sciences.