Exit watch, week of Oct. 13, 2008

EBay shells out $945M for Bill Me Later

San Jose, Calif.-based eBay has agreed to acquire Bill Me Later, a Timonium, Md.-based provider of online payment solutions. The deal is valued at about $945 million, including $820 million in cash and about $125 million worth of outstanding options.

Bill Me Later had raised $200 million in VC funding since 2000 from Crosspoint Venture Partners, Azure Capital Partners and GRP Partners.

Bill Me Later has reported that it is approaching $150 million in annual sales, which means that eBay paid more than 6x revenue.

“I think it’s the top deal of the year, at least with respect to venture-backed tech deals,” says Mike Kwatinetz, general partner of Azure, Bill Me Later’s largest shareholder.

He also said that when Azure invested in the company in 2001, “It was a very contrarian play. It was right after 9/11 and people thought that the Web had ceased to exist as a business entity.”

The acquisition of Bill Me Later comes in the wake of other big exits for Azure, including World Wide Packets (which was bought for $300 million earlier in 2007 by Ciena Corp.) and Rome Corp. (bought by Triple Point Technology for an undisclosed amount earlier this year).

Tyco pays $43M for Vue

Tyco International

has acquired Vue Technology Inc., a Lake Forest, Calif.-based provider of item-level RFID software and infrastructure solutions, for about $43 million in cash. Vue Technology raised about $14 million in VC funding from Canaan Partners, Partech International and Marubeni Corp.

Comcast buys Radiance

Comcast Corp.

has agreed to buy Radiance Technologies Inc., a Los Altos, Calif.-based provider of digital delivery solutions for the advertising and enterprise sectors. The deal is valued at about $5 million. Radiance had raised more than $26 million in VC funding since 2000, including a round last year at a $34 million post-money valuation. Backers included Sutter Hill Ventures, Levensohn Venture Partners and Chevron Technology Ventures.

Convergys scoops up Ceon

Convergys Corp.

(NYSE: CVG) has acquired Ceon Corp., a Redwood City, Calif.-based provider of product lifecycle management and fulfillment software for communications service providers. No financial terms were disclosed. Ceon had raised more than $125 million in VC funding since 1998, including a 2003 recap. Selling shareholders included Accel Partners, Needham Asset Management and Sutter Hill Ventures.