Exit watch, Oct. 2, 2006

Microsoft gets GtekoMicrosoft Corp. (Nasdaq: MSFT) has agreed to acquire Gteko Ltd., an Israel-based provider of support automation software solutions for personal computers. No financial terms were disclosed, although Israeli media reports pegged the sale price between $90 million and $120 million. Gteko raised $12 million in a 2004 venture capital deal from such firms as Intel Capital, NEC Europe, Pitango Venture Capital and individual investors.

The deal is Microsoft’s second acquisition in Israel since the summer. In July, the computer giant bought Whale Communications Ltd., which makes secure access products, for about $75 million. Whale had raised about $30 million in funding from BRM Capital and other investors.

Acquicor unites with JazzAcquicor Technology Inc. (AMEX: AQ) has agreed to acquire Jazz Semiconductor Inc., via a $260 million reverse merger. Acquicor is a blank check acquisition company formed earlier this year by former Apple Computer executives Gilbert Amelio, Ellen Hancock and Steve Wozniac. Jazz is a Newport Beach, Calif.-based wafer foundry that was formed in 2002 by The Carlyle Group, Conexant Systems Inc. and RF Micro Devices Inc. Jazz had been in registration for a $105 million IPO. The reverse merger is expected to close in the first quarter of 2007.

Siemens acquires video security providerSiemens Building Technologies Inc. has agreed to acquire VistaScape Security Systems Corp., an Atlanta-based provider of video analytic technology designed to protect critical infrastructure from a broad spectrum of threats. No financial terms were disclosed for the deal, which is expected to close within 30 days. VistaScape has raised more than $18 million in VC funding from such firms as H.I.G. Capital, Paladin Capital Group, CDP Capital and Visionaria Venture Capital.

Art Tech buys eStaraArt Technology Group Inc. (Nasdaq: ARTG) has agreed to acquire eStara Inc., a Reston, Va.-based provider conversion solutions for enhancing online sales and support initiatives. The deal is valued at up to $48.3 million, including $2 million in cash, a $6 million cash earn-out and about 15.3 million common shares of ATG stock. In 2000, eStara raised $17 million in VC funding, including a $15 million infusion at a $25 million post-money valuation. Backers included Texas Pacific Group, One Equity Partners and JNet Ventures.

SecureWorks merges with enterprise security services providerSecureWorks Inc. of Atlanta and LURHQ Corp. of Myrtle Beach, S.C. of have merged, to form a single provider of managed information security services. No financial terms were disclosed. SecureWorks has raised about $30 million in VC funding from such firms as Alliance Technology Ventures, GE Equity, Mellon Ventures, Noro-Moseley Partners and SBK Capital. LURHQ was backed by a $2 million VC investment in 2002 from Frontier Capital.

Telco calls up north to buy Critical TelecomTelco Systems, a Foxboro, Mass.-based subsidiary of BATM Advanced Communications (London: BVC), has acquired the assets of Critical Telecom Corp., an Ottawa-based developer of broadband enabling platforms for IP-based access networks. No financial terms were disclosed. Critical Telecom has raised more than $13 million in VC funding from BDC Venture Capital, Crown Ventures, Tellus Ventures and VenGrowth Capital.

CDW agrees to pay $175M for BerbeeCDW Corp. (Nasdaq: CDWC), an Illinois-based provider of peripherals, networking products and other computing accessories, has agreed to acquire Berbee Information Networks Corp., a Madison, Wis.-based independent IT solution provider, for $175 million in cash. Berbee had raised $17.5 million in 2000 from One Equity Partners and Baird Capital Partners, with Baird still listing Berbee as a portfolio company. —PE Week staff