Exit watch, week of April 28, 2008

Microsoft buys Farecast for $115M

has agreed to buy Farecast Inc., a Seattle-based developer of data mining techniques to predict prices in the travel industry for a reported $115 million. Farecast has raised just over $20 million in VC funding from such firms as Madrona Venture Group, Greylock Partners, Pinnacle Ventures, Sutter Hill Ventures and WRF Group.

Apple scoops up chip company

Inc. (Nasdaq: AAPL) has agreed to acquire P.A. Semi, a Santa Clara, Calif.-based fabless semiconductor company, for about $278 million. P.A. Semi has raised $126.5 million in total VC funding, including a $40.5 million Series D round last summer. Backers include Bessemer Venture Partners, Highland Capital Partners, TI Ventures, Focus Ventures and Venrock.

Big Blue gets Diligent

has acquired Diligent Technologies, a Framingham, Mass.-based provider of storage “de-duplication” software. No financial terms were disclosed. Diligent had raised nearly $42 million in VC funding since 2002 from such firms as Accel Partners, Matrix Partners, Gemini Israel and Eastward Capital.

QAD falls for Full Tilt assets

QAD Inc. (Nasdaq: QADI) has agreed to acquire the assets of Full Tilt Solutions Inc., a Wayne, Pa.-based provider of product information management software. No financial terms were disclosed. Full Tilt had raised more than $63 million in VC funding since 2000 from such firms as Grotech Capital Group, Comerica Venture Capital, Mellon Ventures and William E. Simon & Sons. Full Tilt sold its services business in early 2004 to Ciber Inc.

Rockwell buys Incuity

Rockwell Automation Inc. (NYSE: ROK) has agreed to acquire Incuity Software Inc., a Mission Viejo, Calif.-based provider of enterprise manufacturing intelligence software. No financial terms were disclosed. Incuity Software raised a $7.3 million Series A round in mid-2006 from American River Ventures and Palomar Ventures.

Sony acquires Gracenote for $260MSony Corp. of America has agreed to acquire Gracenote Inc., an Emeryville, Calif.-based provider of embedded technology and data services for digital entertainment solutions within networked devices. The deal is valued at about $260 million, plus “other contingent consideration.” Gracenote has raised about $50 million in VC funding from such firms as Sequoia Capital and Bessemer Venture Partners.

Wave7 sells for $10.5M

Enablence Technologies Inc. (TSXV: ENA) has agreed to acquire Wave7 Optics Inc., an Alpharetta, Ga.-based provider of optical access systems for video, data and telephony services. The deal is valued at $10.5 million in Enablence stock. Wave7 had raised more than $95 million in total VC funding since 2000 from such firms as Advanced Technology Ventures, Ballast Point Venture Partners, Morgenthaler Ventures, Oak Investment Partners, Navigation Capital Partners, Lucent Ventures and Armada Venture Group.

Sonus buys Atreus

(Nasdaq: SONS) has acquired Atreus Systems Corp., an Ottawa-based provider of IP voice and IP service provisioning software. No financial terms were disclosed. Atreus had raised about $40 million in VC funding since 1999 from such firms as Blueprint Ventures, Skypoint Capital Corp., Mobius Venture Capital, TELUS Ventures, Meritage Private Equity Funds and Business Development Bank of Canada.

iTradeNetwork purchases Instill

, a Pleasanton, Calif.-based provider of on-demand e-business solutions for the food industry, has agreed to acquire Instill Corp., a San Mateo, Calif.-based provider of spend intelligence solutions for the food service industry. No financial terms were disclosed. The deal is partially being financed by Accel-KKR, which recently acquired a majority equity stake in iTradeNetwork. Instill has raised more than $90 million in VC funding between 1995 and 2001, with current shareholders including Octane Capital, Panorama Capital and Mayfield Fund.

Dynogen withdraws IPO

, a Waltham, Mass.-based drug company focused on gastrointestinal and genitourinary disorders, has scrapped plans to go public via a reverse merger with a SPAC called Apex Bioventures Acquisition Corp. The company is now expected to seek additional venture capital. To date, Dynogen has raised about $67 million from such firms as Atlas Venture, HealthCare Ventures, Oxford Bioscience Partners, Abingworth Management, Medica Venture Partners and Pappas Ventures.