Exit watch, week of Aug. 17, 2009

VMWare buys SpringSource for $420M

VMWare Inc.

(NYSE: VMW) has agreed to buy SpringSource Inc., a San Mateo, Calif.-based maker of software for building and managing the enterprise Java application lifecycle. The deal is valued at $420 million, the largest acquisition ever for VMWare. SpringSource has raised about $46 million in VC funding since 2007 from Accel Partners, Bay Partners, Benchmark Capital and DAG Ventures.

Facebook adds FriendFeed to its network


has acquired FriendFeed Inc., a Mountain View, Calif.-based social networking site focused on content sharing. No financial terms were disclosed, but various press reports put the sale price at about $50 million. FriendFeed raised $5 million in Series A funding round in Ferbruary 2008 led by Benchmark Capital. Facebook investors include Accel Partners, Greylock Partners, Meritech Capital Partners, Microsoft and Millennium Technology Ventures.

Merge Healthcare merges with Confirma

Merge Healthcare Inc.

(Nasdaq: MRGE) has agreed to acquire Confirma Inc., a developer of computer assisted detection software for medical imaging. The all-cash deal is valued at about $22 million. Confirma has raised more than $36 million in VC funding from Fluke Venture Partners, Northwest Venture Associates, Prism VentureWorks, Versant Ventures and Telegraph Hill Partners.

Versata takes over Everest

Versata Enterprises Inc., an enterprise software subsidiary of Trilogy Inc., has acquired Everest Software Inc., a Dulles, Va.-based provider of a business operating system for small and mid-sized businesses. No financial terms were disclosed. Everest Software has raised about $20 million in VC funding from Boulder Ventures, New Vantage Group, Updata Partners and Sierra Ventures.

Atrinsic acquires ShopIt

Atrinsic Inc. (Nasdaq: ATRN) has acquired ShopIt.com, a Brentwood, Calif.-based e-commerce platform that allows buyers and sellers to tap into social networks, such as Facebook. No financial terms were disclosed. ShopIt had raised a small amount of VC funding from Propulsion Ventures and Helios Investment Partners.

Broadview nabs Natural Convergence assets

Broadview Networks Inc.

, a Rye Brook, N.Y.-based provider of integrated communications and managed security services, has agreed to acquire certain assets of Natural Convergence Inc., an Ottawa-based provider of hosted VoIP software applications. No financial terms were disclosed. Natural Convergence has raised VC funding from VIMAC Ventures, Jefferson Partners, BDC Venture Capital, Dejardins, Primaxis, WesleyClover and PurpleAngel. Current shareholders of Broadview, which has raised nearly $300 million in total VC funding since 1997, include Baker Capital, MCG Capital, New Enterprise Associates, ComVentures and Lightspeed Venture Partners.

PacificSource buys VC-backed Primary Health

PacificSource Health Plans

has acquired Primary Health Inc., a Boise, Idaho-based health insurance provider. No financial terms were disclosed. Primary Health had raised about $41 million in VC funding between 1995 and 2000 from Accel Partners, Capstone Ventures, Carlyle Venture Partners, Coleman Swenson Booth, JPMorgan Capital, New Enterprise Associates, Piper Jaffray Ventures and SightLine Partners.

Sigma-Aldrich scoops up ChemNavigator


(Nasdaq: SIAL) has acquired ChemNavigator Inc., a San Diego-based provider of discovery research informatics software tools for the design, selection and procurement of chemical compound libraries. No financial terms were disclosed. ChemNavigator raised VC funding in 2000 from AsiaVest Partners, 3V SourceOne Capital, Castle Rock Ventures, Chitung Venture Capital, Global Life Science Ventures, Hotung International, UOB Venture Management and Taurus Enterprises.