Random Ramblings
Greetings from cold, snowy and Renteria-less Boston. Some notes as we head into the weekend:
*** Monday’s Buyouts Magazine will include a piece I recently wrote about the future of private equity fund placement agents, particularly vis-à-vis growing buyout fund sizes. My general premise was as follows: More and more firms are raising funds in excess of $750 million (40% increase from 2002-2003 to 2004-2005), which consequently means that more and more firms are hiring in-house fund-raising and/or investor relations pros. These jobs are typically separate, although there are more than a few jacks-of-all-trades. Some firms even have entire teams devoted to the cause (e.g., Carlyle Group). So if the industry trend is toward internal fund-raisers, where does that leave external fund-raisers?
The most common answer seems to be that the outsiders are left with partial mandates, whereby a firm going from a $1 billion Fund III to a $1.75 billion Fund IV will hire an outside agent to secure the extra $750 million. Or perhaps to secure a couple of Japanese LPs, because the firm wants some geographic expertise/credibility. This is a decent model while PE fund sizes grow, but absolute disaster if they plateau. I know that many of you believe buyout fund size growth to be perpetual, but remember the VC fund size experience.
In fact, the VC example may prove a map for where the buyout fund placement agent market is headed. Most of the good work won’t come from established/reputable firms, but rather from young or new teams that spin out of established/reputable firms. For example Diamond Castle Holdings (ex-DLJ Merchant Banking/CSFB PE folks like Larry Schloss) is using Lazard Freres to raise its $2.5 billion inaugural fund. Anyway, more on this topic Monday for Buyouts magazine subscribers.
*** Speaking of placement agents, can you name the placement agent who is leaving his in-house job with a Boston-based firm, in order to launch a new independent placement agency? Hint: Formal announcement expected in early January.
*** The month’s most intriguing firm has to be Providence Equity Partners. No, not because it got sued, but because it’s seemingly involved in every mega-LBO deal on the market: TDC, Dunkin’ Donuts, Kabel Deutscheland, Knight Ridder, etc. If each bid comes through, Providence could be back in the fund-raising market within two years, despite having closed on $4.25 billion just a few months back. No judgment (yet), but it certainly bears watching.
*** Quiz Time: What corporate VC group is telling portfolio companies that it must liquidate its current fund ASAP? Hint: Think global.
*** Constance Loizos of PE Week has some dish on the Train Wreck at Grand Central.
*** Finally, yesterday I wrote that I didn’t plan to attend the “PwC shindig.” Turns out it was the PwC-Globespan Capital Partners-Goodwin Procter shindig, as more than a few Globespan and Goodwin Procter readers wrote in to share (used to be the PwC-Atlas Venture-Testa Hurwitz shindig). Anyway, I felt so bad about my mistake (read: free booze and sushi) that I changed my mind about attending. I met a lot of readers, and engaged in conversations that ranged from the prevalence of black bears in Southern New Jersey to why SunGard is such a troubling deal. Oh, and I think that I also compared VC deals for pharma and gaming companies in the same breath, since they are so hits-reliant. Anyway, one week – four parties. Hopefully next week will be slower, but methinks not.
|
|
|
Top Three |
Lululemon Athletica, a Vancouver, Canada-based specialty retailer of athletics and yoga apparel, has raised US$93 million in private equity funding. Advent International led the deal, and was joined by Highland Capital Partners. The deal is in exchange for a 47.7% equity stake, with company founder Chip Wilson retaining the majority position. www.lululemon.com www.adventinternational.com www.hcp.com
Wellspring Capital Management has agreed to acquire restaurant/entertainment complex operator Dave & Buster’s Inc. (NYSE: DAB) for $18.05 per share. The total transaction is valued at approximately $375 million (including the assumption of debt) and is expected to close in Q2 2006. Piper Jaffray is serving as exclusive financial advisor to Dave & Buster’s, while J.P. Morgan Securities is both advising Wellspring and serving as sole lead arranger for the acquisition financing. www.wellspringcapital.com www.daveandbusters.com
Nasdaq Stock Market has completed its $1.88 billion buyout of Instinet Group Inc. (Nasdaq: INGP), which was majority-owned by Reuters PLC. Simultaneously, Silver Lake Partners completed its acquisition of Instinet’s institutional brokerage business. www.instinet.com
|
VC Deals |
Optosecurity Inc., a Quebec City, Canada-based provider of security products for the detection of weapons or explosive devices in cargo of luggage, has raised additional first-round funding from Fondaction CSN. The company has now raised Cdn$5.1 million in VC funding this year, with first tranche backers including Business Development Bank of Canada and Innovatech Quebec. www.optosecurity.com
Webshastra Pvt. Ltd., a Bangalore, India-based provider of online advertising solutions, reportedly has raised $10 million in first-round funding from Warburg Pincus. www.webshastra.com
Altair Semiconductor Ltd., an Israel-based developer of broadband wireless communications semiconductors, has raised $8 million in first-round funding, according to Globes Online. BRM Capital led the deal, and was joined by Giza Venture Capital and JVP. www.altair-semi.com
|
Buyout Deals |
VNUNV, a Dutch media company, may receive buyout bids from a pair of private equity consortia, according to The Wall Street Journal. Bids likely would be well in excess of $8 billion, with one group made up of Apax Partners, Blackstone Group, Carlyle Group; KKR, Permira, Thomas H. Lee Partners and AlpInvest. The other group – reported to be in a more preliminary stage – includes Bain Capital, Texas Pacific Group and Warburg Pincus.
TA Associates has sold portfolio company HVL Inc. (a.k.a. Douglas Laboratories)to Canada-based Atrium Biotechnologies Inc. (TSX: ATB.sv) for approximately $92 million. HVL is a Pittsburgh-based provider of nutritional products, and first received private equity backing from TA Associates in 1997. www.ta.com www.douglaslabs.com
AIG-Brunswick Millennium Fund has sold its stake in IBS Group Holding Ltd., a Russia-based provider of IT services and products. The deal is valued at $84 million, with the buyers only referred to as “a number of institutional investors.” www.ibs-company.com
Pernod Ricard SA reportedly has received three bids for its restaurant business, which includes brands like Dunkin’ Donuts, Baskin Robbins and Togo. The groups include: KKR/Trimaran Capital Partners, Providence Equity Partners/JPMorgan Partners and Bain Capital/TH Lee/Carlyle Group. The deal is expected to be worth upwards of $2 billion.
Kosmos Energy LLC of Dallas has acquired a 35% working interest in the Kombe-N’sepe Block onshore the Republic of Cameroon. Kosmos’ partners on the block are Perenco, operator of the project with a 40% working interest, and Societe Nationale des Hydrocarbures (SNH), the national oil company of Cameroon, with a 25% working interest. No financial terms were disclosed. Kosmos Energy received $300 million in private equity commitments in 2003 from Warburg Pincus and The Blackstone Group. www.kosmosenergy.com
Apollo Management, KKR and Texas Pacific Group yesterday submitted a $23.25 per share bid for supermarket company Alberton’s Inc. (NYSE: ABS), according to The Financial Times. Additional bids were possible from Kroger’s and Cerberus/Kimco Realty/Supervalu, with the Alberton’s board expected to evaluate all offers this weekend.
|
PE-Backed IPOs |
Basic Energy Services Inc., a Midland, Texas-based provider of well site services to oil and gas drilling and production companies, priced 12.5 million common shares at $20 per share (top of $18-$20 range), for an IPO take of approximately $250 million. It will trade on the NYSE under ticker symbol BAS, while Goldman Sachs and Credit Suisse First Boston served as lead underwriters. DLJ Merchant Banking was listed as Basic Energy’s majority shareholder, based on a December 2000 recapitalization. First Reserve, Fortress Capital and Southwest Partners also hold equity positions. www.basicnrg.com
WiderThan Company Ltd., a Seoul, South Korea-based provider of mobile entertainment solutions for wireless carriers, priced six million million American depository shares at $12 per ADS (below its $14-$16 range), for an IPO take of approximately $72 million. It will trade on the Nasdaq under ticker symbol WTHN, while Merrill Lynch and JP Morgan servied as lead underwriters. Shareholders include Nokia Venture Partners, i-Hatch Ventures, SAIF Capital, Apax Partners, General Atlantic and The Washington Dinner Club. www.widerthan.com
Cynosure Inc., a Westford, Mass.-based developer of non-invasive aesthetic treatment systems to do such things as remove hair or treat vascular lesions, priced five million common shares at $15 per share (above $12-$14 range), for an IPO take of approximately $75 million. It will trade on the Nasdaq under ticker symbol CYNO, while Citigroup served as lead underwriter. Cynosure received under $1 million in VC funding in 1998 from the Boston University Community Technology Fund and Venham Ventures. www.cynosurelaser.com
|
PE-Backed M&A |
Par3 Communications Inc., a Seattle–based provider of enterprise customer communications solutions, has acquired EnvoyWorldWide Inc., a Bedford, Mass.–based provider of notification services for business continuity and emergency communications. No financial terms were disclosed. Par3 has raised around $33 million in total VC funding since its 1999 inception, from firms like Draper fisher Jurvetson, Bluerun Ventures, Timberline Venture Partners, InterWest Partners and Staenberg Venture Partners. EnvoyWorldWide has raised around $38 million in VC funding since its 1998 inception, from firms like Battery Ventures, Longworth Venture Partners and Sofinnova Partners. www.par3.com www.envoyww.com
|
Firm & Fund News |
Lime Rock has closed its Lime Rock Resources fund with $450 million in capital commitments. The vehicle will acquire lower-risk oil and fas properties in the United States. Monument Group assisted in the fund-raising, while limited partners include the Pennsylvania State Employees’ Retirement System ($25m) and the University of Michigan ($25m). www.limerockresource.com
Bingham McCutchen LLP has agreed to merge with 140-attorney law firm Swidler Berlin LLP of Washington, D.C. The combined firm would retain the Bingham McCutchen name, and would feature nearly 1,000 attorneys. www.bingham.com
The CaliforniaPublic Employees Pension System (CalPERS) has made the following fund commitments: $400 million to Blackstone Capital Partners V; $150 million to Avenue Special Situations Fund IV; $175 million to Welsh Carson Anderson & Stowe X; 150 million euros to Candover 2005; and $52.5 million to Rosewood Capital V. www.calpers.com
The Pennsylvania State Employees’ Retirement System has made the following fund commitments: $25 million to Care Capital Investments III, $25 million to Lightspeed Venture Partners VII, 50 million euros to Alpha Private Equity Fund 5; $100 million to JPMorgan Venture Capital Institutional Investors III; $20 million to TL Ventures VII; and $50 million to Blackstone Real Estate Partners V. www.sers.state.pa.us
|
Human Resources |
Matt Horton has joined @Ventures, the VC affiliate of CMGI Inc. (Nasdaq: CMGI), as a principal. He previously was with Garage Technology Ventures. www.cmgi.com
Charles Bennett, onetime director of the NASD’s corporate financing department, has joined Kaulkin Information Systems as senior advisor for regulation and compliance. www.kaulkin.com
Random Ramblings
*** Some of you have written in to ask if my primary interest in the Herald Media Inc. sale is provincial, since most reporters would instead be focused on the pending sale of the much-larger Knight Ridder Inc. (first-round bids due tomorrow). The answer is mostly affirmative, since I believe strongly that Boston’s best interests are served by having two vibrant and competing daily newspapers. That said, however, it’s also because Herald Media offers the community weekly vs. big-city daily dichotomy of which I’ve written extensively, with the former now far more attractive than the latter. Anyway, a few notes on the deal:
First, it has been reconfirmed that the sale is for the entire company, which includes The Boston Herald, over 100 community papers in Eastern Massachusetts and a sweet piece of Boston real estate. Second, Wachovia received over 10 first-round bids last Thursday from both strategic and private equity players, of which a handful will be invited back into Round 2. Third, Heritage Partners is looking more like a seller than a buyer. If it is ultimately involved in this deal, expect it to package its Enterprise NewsMedia LLC platform along with Herald Media for a buyer looking for significant regional expansion. Finally, the whole thing should be wrapped up by the end of Q1 2006.
*** Blackstone Group held a second close on its fifth general buyouts fund on November 30, as expected (LPs were just informed this week). The record-breaking tally now stands at just under $12 billion, with a final close on around $13 billion still expected to occur early next year. Blackstone declined to comment on the fund-raising effort.
*** Speaking of major fund-raising, someone from an I-banking fund placement group told me that the group just received a mandate for a fund that “could be as large as Blackstone’s.” My problem is that I can’t think of any firm that might be raising even $12 billion, let alone $13 billion. KKR is a possibility, but it raised 4.5 billion euros for its European fund just a few months ago, and isn’t expected to be targeting more than $8 billion for its next North American fund. Texas Pacific Group was a thought, but a press report puts its target at just $8 billion. The only other firm I can think of is the spun-out JPMorgan Partners buyout group, but $10 billion-plus just seems way too high for them. Any ideas from you, dear readers? Remember, the Top Secret button is a great way to leave anonymous tips.
*** A quick correction to something I wrote a few weeks ago: Atlas Venture now expects to close its seventh fund in early 2006, instead of at year-end. It also formally reduced its target from $600 million to $400 million.
*** Dow Jones is reporting that a settlement has been reached in the case of 51 ex-Epinions Inc. employees and eBay, Benchmark Capital, August Capital and BV Capital Management. No settlement terms were disclosed, nor was there any comment from the VC firms.
*** This has been a week of VC-related parties, so quick commendations are in order to: Clarus Ventures for serving great red wine (fund closing party in Cambridge) and Castile Ventures for serving great hour dourves (holiday party in Waltham). I’m not going to the PwC shindig tonight, but someone please write in to share such important details…
|
|
|
Top Three |
Bridgepoint has completed its acquisition of Environmental Resources Management PLC, a UK–based provider of environmental consulting services. The deal was valued at $535 million, and includes the 52% stake owned by 3i Group and part of the 48% stake held by ERM’s 400 employee shareholders. In total, Bridgepoint holds a 58% position, while ERM management and employees hold the remaining 42 percent. The deal is Bridgepoint’s first transaction out of the 2.5 billion euros third fund it raised earlier this year. www.bridgepoint-capital.com www.erm.com
NGP Energy Capital Management has closed three funds with an aggregate of $1.7 billion in committed capital. They are: Natural Gas Partners VII with $1.3 billion, companion fund NGP Income Co-Investment Opportunities Fund II with $250 million and NGP Energy Technology Partners with $148 million. Each final close occurred in November. www.ngptrs.com
Cardio-Optics Inc., a Wilmington, Mass.-based medical device company, has secured $20.5 million of a $24 million Series B round, according to a regulatory filing. Backers include Novo AS, Cardinal Partners, WSI Inv*stments, Primus Venture Partners and Sequel Venture Partners. www.cardiooptics.com
|
VC Deals |
Cellon Inc., a Shenzhen, China-based provider of design and systems integration services for the wireless handset industry, has raised a Series D funding round led by TVG Capital Partners. No terms were disclosed for the deal, but Asian Venture Capital Journal places the total at $50 million www.cellon.com
Pentaho Corp., an Orlando, Fla.-based provider of open-source business intelligence software, has raised $5 million in Series A funding. New Enterprise Associates led the deal, and was joined by Index Ventures. www.pentaho.org
Third Brigade Inc., an Ottawa, Canada-based provider of intrusion prevention systems, has raised Cdn13 million in Series B funding. Return backers include BCE Capital, Celtic House Venture Partners and BDC Venture Capital. The company’s first-round deal raised Cdn6 million this past April. www.thirdbrigade.com
Adchemy Inc., a Palo Alto, Calif.-based Internet marketing startup, has raised around $6.35 million in Series B funding, according to a regulatory filing. Backers include August Capital. www.adchemy.com
Trovix Inc., a Mountain View, Calif.-based provider of search technology, has raised $5.25 million in Series A funding from U.S. Venture Partners, 3i Group and Stanford University. The company also launched an intelligent applicant tracking system product focused on the recruitment market. www.trovix.com
Alba Communications Ltd., a London-based provider of programming for the television, video and DVD markets, has raised Gbp250,000 in VC funding from The Capital Fund. www.albacommunciationsltd.com www.thecapitalfund.co.uk
DFine Inc., a Cupertino, Calif.-based developer of an electrosurgical system for treating tissue, has secured $6.5 million of a $7 million Series B round, according to a regulatory filing. Backers include Prospect Venture Partners.
Pinstripe Inc., a Milwaukee-based provider of recruitment process outsourcing services, has raised $3 million in a Series A funding round led by Baird Venture Partners. The State of Wisconsin Investment board and company management also participated.
|
Buyout Deals |
Mid Europa Partners has agreed to acquire Aster City Cable for 412 million euros from Hicks, Muse, Tate & Furst EuropeFund (advised by Lion Capital). Aster City is a Poland-based provider of media and communications services in Poland. The deal represents a 4.8x multiple on invested capital for HMTF Europe Fund. www.astercity.com.pl
The Riverside Co. has sold the automotive sensor business of Elkhart, Ind.-based portfolio company American Electronic Components Inc. to Siemens VDO Automotive Corp. No pricing terms were disclosed. AEC is one of four companies that Riverside acquired on the same day in November 2002, as part of a carve-out from Dana Corp. (NYSE: DCN). It already has exited the other three via sales to TriMas Corp., a portfolio company of Heartland Industrial Partners. www.riversidecompany.com www.aecsensors.com
The CPP Investment Board has acquired an 80% two large shopping centers in Quebec: the Galeries de la Capitale in Quebec City and Carrefour de L’Estrie in Sherbrooke. Westerkirk Capital taking the remaining 20%, with the properties being managed by Redcliff Realty Management Inc., a wholly owned subsidiary of Osmington. No financial terms were disclosed. www.cppib.ca
Apax Partners is considered the frontrunner for BSN Medical GmbH, the medical products group being sold by Beiersdorf AG and Smith & Nephew PLC, according to the Frankfurter Allgemeine Zeitung. Morgan Stanley is running the auction, with other bidders reported to include Advent International, CVC and Montagu Private Equity. www.apax.com
North Castle Partners has sold Grand Expeditions Inc. to UK leisure company First Choice Holidays PLC for Gbp54 million, including Gbp11.8 million in long-term debt. Grand Expeditions is a high-end travel group catering to 45-65 year-olds, and was acquired by North Castle in 1999. www.northcastlepartners.com www.grandex.com
Industri Kapital has received European Commission approval for its proposed buyout of GUS Holland Holding from GUS PLC.
|
PE-Backed IPOs |
Patni Computer Systems Ltd., a Mumbai, India-based provider of IT services, priced 6.875 million American depository shares at $20.34 per ADS, for an IPO take of approximately $140 million. The company plans to begin trading today on the NYSE under ticker symbol PTI, and already has been listed on both the Bombay Stock Exchange and National Stock Exchange of India. Goldman Sachs (Asia), Merrill Lynch, ABN Amro and Rothschild served as lead underwriters for the offering. Significant shareholders include General Atlantic, GE Capital and HSBC. www.patni.com
|
PE-Backed M&A |
Par3 Communications Inc., a Seattle–based provider of enterprise customer communications solutions, has acquired EnvoyWorldWide Inc., a Bedford, Mass.–based provider of notification services for business continuity and emergency communications. No financial terms were disclosed. Par3 has raised around $33 million in total VC funding since its 1999 inception, from firms like Draper fisher Jurvetson, Bluerun Ventures, Timberline Venture Partners, InterWest Partners and Staenberg Venture Partners. EnvoyWorldWide has raised around $38 million in VC funding since its 1998 inception, from firms like Battery Ventures, Longworth Venture Partners and Sofinnova Partners. www.par3.com www.envoyww.com
|
Firm & Fund News |
Vintage Venture Partners of Israel has held a $45 million first close on its second fund-of-funds focused on early-stage, Israel-related technology VC funds. The fund target is $75 million, with a final close expected to occur in February or March. www.vintageventures.com
SVB Financial Group, the parent company of Silicon Valley Bank, has opened a Shanghai-based subsidiary named SVB Business Partners (Shanghai) Co. Ltd. www.svb.com
|
Human Resources |
Raj Parekh has joined the life sciences team of Advent Venture Partners as a general partner. He is a co-founder of Oxford Glycosciences, and most recently served as an entrepreneur-in-residence with Abingworth Ventures. Advent Venture Partners also is promoting Shahzad Malik from partner to general partner in the life sciences team, and Frédéric Court from principal to partner in the information and communications team. www.adventventures.com
Michael Marks has agreed to join Kohlberg Kravis Roberts & Co. as a member on January 1, following his retirement as CEO of Flextronics International Ltd. (Nasdaq: FLEX). www.kkr.com
Ray Schuder has joined El Dorado Ventures as a senior associate. He previously served as a vice president with Pequot Ventures and, before that, was a director with Silicon Valley BancVentures. www.eldorado.com
CapitalSource Finance LLC has promoted Cheryl Carner to managing director of the retail finance group. www.capitalsource.com
28,000 and Counting…
Every time the PE Week Wire adds another thousand subscribers, I like to remind you that these morning missives are just a scrumptious sampling of our editorial buffet. Yeah, it’s a complimentary sampling, but paid subscribers to Private Equity Week, Venture Capital Journal and Buyouts Magazine get VC and LBO market news and analysis that can’t be found anywhere else. Deal news, fund news, market trend analyses, exclusive data and profiles are just a few expense account dollars away (this is what corporate credit cards were made for). So sendsales guru Robert Mills an email today. For those wanting to advertise in any of those publications – or in the PE Week Wire – please contact Naz Bayazit. As always, thanks for reading.
|
|
|
Top Three |
Celladon Corp., a La Jolla, Calif.-based developer of treatments for heart failure and other cardiovascular diseases, has raised $30 million in Series B funding. Kleiener Perkins Caufield & Byers and Domain Associates co-led the deal, and were joined by return backers Enterprise Partners Venture Capital and Venrock Associates. www.celladon.net
Pay By Touch, a San Francisco-based provider of biometric authentication solutions, has agreed to acquire BioPay LLC, a Herndon, Pa.–based provider of biometric solutions to retailers and merchants. The deal is valued at $82 million in stock and cash, and is expected to close within the next few weeks. It also ends several months of legal wrangling between the two companies, including claims of patent infringement. Pay By Touch recently raised $130 million in private secured and convertible promissory note funding from firms like Och-Ziff Capital Management, Farallon Capital Management, Getty Trusts, Ron Burkle and Rembrandt Ventures. www.paybytouch.com www.biopay.com
Providence Equity Partners has agreed to pay $500 million for the 66% of German cable giant Kabel Deutschland GmbH that it doesn’t already own, according to The New York Times. The sellers are Goldman Sachs Capital Partners and Apax Partners, which teamed with Providence to acquire Kabel Deutschland in 2003 for 1.7 billion euros. www.kabeldeutschland.de
|
VC Deals |
Persistent Systems Pvt. Ltd., an Pune, India-based outsourced software product development company, has raised $18.8 million in new VC funding. Norwest Venture Partnersled the deal with a $13.8 million commitment, and was joined by Gabriel Venture Partners. www.persistentsys.com
Oculir Inc., a San Diego-based developer of non-invasive glucose testing devices for people with diabetes, has raised $7.3 million in Series A funding. Onset Ventures and CHL Medical Partners co-led the deal, and were joined by Canaan Partners, Three Arch Partners, Shepherd Ventures and Windamere Venture Partners. www.oculir.com
Jingle Networks Inc., a Franklin, Mich.–based operator of a national consumer telephone directory assistance service, has raised around $5 million in Series A funding. Backers included First Round Capital, IDG Ventures Boston, Liberty Associated Partners and Lead Dog Ventures. www.jinglenetworks.com
N8 Systems Inc., a Berkeley, Calif.-based provider of precision requirements validation for software developers, has raised $9.7 million in Series A funding. Backers include Alloy Ventures, Palomar Ventures and the Roda Group. www.n8systems.com
Caretek Medical Ltd., an Oxford, UK-based developer of a needle-free drug delivery device, has raised Gbp2.1 million in new VC funding. Oxford Technology 4 VCT led the deal, and was joined by Oxfordshire Inv*stment Opportunity Network. www.caretekmedical.co.uk
Tiger Optics LLC, a Warrington, Pa.-based developer of spectoscropy instruments for detection of trace contaminants in gasses, has held a first close on its Series B funding round. No financial terms were disclosed for the deal, which was led by Expansion Capital Partners. www.tigeroptics.com
Sam Seltzer’s Steakhouse, a Tampa, Fla.-based restaurant chain operator, has raised $11 million in growth financing from Capital Resource Partners of Boston. Hyde Park Capital Advisors served as Sam Seltzer’s I-bank on the transaction. www.samseltzers.com
PGP Corp., a Palo Alto, Calif.-based provider of enterprise data security and encryption solutions, has raised $10 million in third-round funding. Backers include DCM-Doll Capital Management, Venrock Associates, SVB Capital and Silicon Valley Bank. The company has raised around $30 million in total VC funding since its 2002 inception. www.pgp.com
Cogency Software Inc., a Burlingame, Calif.-based provider of automated management solutions for the alternative inv*stment industry, has raised $2.5 million in Series A-1 funding, according to a regulatory filing. Backers include BA Venture Partners, U.S. Venture Partners, Apex Venture Partners and Alots Ventures. The company has raised around $54 million in total VC funding since its 1997 inception. www.cogencysoft.com
SpineVision, a Paris, France-based, has raised more than $16 million in new VC funding. Bio*One Capital led the deal, and was joined by Sofinnova Partners, HBM Ventures, Innoven Private Equity and HealthCap. Approximately 80% of the capital will be used to spin off SpineVision’s new technologies business unit, creating a new subsidiary — FlexSpine – to be based in Singapore. www.spinevision.com
Goldsun Joint Stock Co., a Hanoi, Vietnam-based provider of carton packaging and kitchenware, has raised $1.55 million in funding from Mekong Capital. www.mekongcapital.com
Critical Mention Inc., a New York-based provider of television search and monitoring services, has raised $4.2 million in Series B funding. CIBC Capital Partners led the deal, and was joined by return backers like Silicon Alley Venture Partners and Stonehenge Capital. www.criticalmention.com
Multispectral Imaging Inc., a Sparta, N.J.–based provider of infrared detectors, has raised $4.65 million in Series B funding. Spencer Trask led the deal, and was joined by fellow return backers SAS Inv*stors and Rho Ventures, plus new backers Battelle Ventures and its Innovation Valley Partners affiliate.
Sionex Inc., a Bedford, Mass.-based developer of chemical sensor chips and systems, has secured $10.08 million of a $12 million Series C round, according to a regulatory filing. Backers include Navigator Technology Ventures, Morgenthaler Ventures, Rho Ventures, TechFarm Ventures and Draper Labs.
Njini Inc., a UK-based developer of data management software solutions, has secured $2.5 million of a $5 million Series B funding, according to a regulatory filing. Backers include Accel Partners and Add Partners.
|
Buyout Deals |
Accel-KKR has agreed to sell CRS Retail Systems Inc. to Epicor Software Corp. (Nasdaq: EPIC) for $121 million in cash. CRS is a Newburgh, N.Y.-based provider of point-of-sale, store support and retail analytics software for specialty retailers. Accel-KKR purchased a majority stake in CRS in October 2002 for $45 million. www.accel-kkr.com www.crsretail.com
Energy Investors Funds has acquired a majority stake in Tierra Energy LLC, an Austin, Texas-based aggregator of natural gas-fired generation facilities and developer of wind farms. No financial terms were disclosed. EIF did the deal through its U.S. Power Fund II. www.eifgroup.com www.tierraenergy.com
Charlesbank Capital Partners has acquired Zenith Products from Masco Corp. (NYSE: MAS), in partnership with company management. No pricing terms were disclosed for the deal, which was funded via equity and debt from Charlesbank. Zenith Products in a New Castle, Del.-based designer and manufacturer of bathroom storage products and accessories for the retail market. Harris Williams & Co. advised Masco on the deal. www.charlesbank.com www.zenith-interiors.com
Wellspring Capital Management and CharlestownInv*stments (Switzerland) have acquired the Port Alice pulp mill on Vancouver Island, and renamed the facility Neucel Specialty Cellulose. The deal includes an initial inv*stment of Cdn$45 million, with the expectation of more than Cdn$100 million in total inv*stment over a five-year period. www.wellspringcapital.com
Bridgepoint is considering a 500 million euros sale of French perfume and cosmetics company Nocibe to Charterhouse, according to La Tribune.
American Capital Strategies has acquired an 83% stake in DelStar Technologies Inc., a Middletown, Del.–based manufacturer of thermoplastic non-woven products used by OEMs in filtration, healthcare and industrial applications. The deal was valued at approximately $114 million. www.americancapital.com www.delstarinc.com
Safeguard Scientifics Inc. (NYSE: SFE) has completed its acquisition of Acsis Inc., a Marlton, N.J.-based provider of enterprise data collection solutions to global manufacturers.. The deal is valued at $26 million in cash, with Safeguard holding a 96% stake and Acsis management holding the remainder. www.safeguard.com www.acsis.com
Vulcan Capital has acquired a majority stake in International Catastrophe Insurance Managers LLC, a Boulder, Colo.–based underwriter of property catastrophe insurance products in the United States. No financial terms were disclosed. www.icat.com
|
PE-Backed IPOs |
Vocus Inc., a Latham, Md.-based provider of on-demand software for corporate communications and public relations, priced five million common shares at $9 per share (low end of $9-$11 range), for an IPO take of approximately $45 million. Thomas Weisel Partners and RBC Capital Markets served as lead underwriters. Significant shareholders include Edison Venture Fund, Lazard Technology Partners and Sterling Venture Partners. www.vocus.com
Ipsen, a French drug company, has set terms for its proposed IPO to 22.20 euros, thus valuing the company at approximately 1.84 billion euros. The company is controlled by PAI Partners. www.ipsen.com
|
PE-Backed M&A |
TranSwitch Corp. (Nasdaq: TXCC) has agreed to acquire Mysticom Ltd., an Israel-based provider of digital signal processing cores for the semiconductor industry, for approximately $5 million in cash. The deal also includes the possibility of an additional $10 million in milestone earn-outs over the next year. Mysticom has raised over $42 million in VC funding since its 1997 inception, from firms like JPMorgan Partners, Newbury Ventures, Pitango Venture Capital, Texas Instruments, ABN Amro, Cisco Systems, Giza Venture Capital, Koor Corporate VC, Tamir Fishman Ventures and Philips VC Fund. www.transwitch.com www.mysticom.com
Intalio Inc., a Redwood City, Calif.-based provider of open-source business process management solutions, has acquired FiveSight Technologies Inc., a Chicago-based company that brought to market the first open-source implementation of the BPEL 2.0 specification. No financial terms were disclosed. Intalio has raised around $44 million in total VC funding since its 1999 inception, from firms like Ridge Ventures, Sippl Macdonald Ventures, 3i Group, Cargill Ventures, Dassault Development, SAP Ventures and Woodside Fund. www.intalio.com www.fivesight.com
TexStar Field Services Inc., a natural gas midstream energy company created in 2004 by Hicks, Muse, Tate & Furst, has acquired certain midstream natural gas assets located in south and northeast Texas from Enbridge Energy Partners. The deal is valued at $106 million.
|
Firm & Fund News |
Spur Capital Partners of Bartlesville, Oklahoma has raised $149 million for its second venture capital fund-of-funds, according to a regulatory filing. Limited partners include the Barclays Bank UK Retirement Fund, Delta Lloyd Private Equity and Equity Partners GmbH. www.spurcap.com
VCOMA, the national organization for office managers in the VC and PE industry, announced that it has reached 100 members (representing 100 different firms), just four months after launch. www.vcoma.com
|
Human Resources |
Michael Farello has agreed to join Catterton Partners as a partner, effective on January 2. He most recently served as vice president of U.S. consumer electronics and accessories at Dell Inc., and previously spent 12 years with McKinsey & Co. www.cpequity.com
Tariq Malhance has been named senior vice president of private equity and president of UIB Bank, the Chicago office of Bahrain-based Islamic I-bank Unicorn Investment Bank. He has spent the past 25 years in Chicago city government, including stints as comptroller and first deputy city treaurer. www.unicorninvestmentbank.com
Gary King has been named CEO of the Dubai Mercantile Exchange, a joint venture between the New York Mercantile Exchange and Dubai Holding. He most recently worked on a joint venture between Macquarie Bank and the Abu Dhabi Commercial Bank, and also helped launch the Standard Bank/GIB GCC private equity energy fund for the Dubai International Finance Centre. www.dubaimerc.com
___________________
Corrections: Harjit Bhatia’s name was misspelled in yesterday’s edition. He was named CEO of Ritchie Capital Advisors Asia-Pacific. Also, NexTest Systems Corp. was incorrectly identified as NextTest Systems Corp.
Pursuing Paul
I’ve been chasing Paul Sekhri for nearly a year. Last night I finally found him.
Sekhri is CEO of Cerimon Pharmaceuticals Inc., a Boston-based drug company that recently raised $70 million in Series A funding. He made his mark as head of global search and evaluation with Novartis Pharma AG, before leaving in late 2002 for what would be a short tenure as a partner with Sprout Group. It was during his work with Sprout that I first spoke with him, for a Venture Capital Journal cover story on the VC funding environment for diabetes-related companies. He was one of the most insightful and pragmatic VCs I had spoken with, which is why I continued to bother him after he had left Sprout to become president and chief business officer of publicly-traded ARIAD Pharmaceuticals Inc. in Cambridge, Mass.
Then came a December 17, 2004 mass email in with Sekhri said that he was leaving ARIAD to join something called Cerimon Pharmaceuticals, which was housed within the Boston offices of MPM Capital. I wrote back, asking for info on Cerimon. Paul and I then engaged in nearly a year-long cat and mouse game (I played cat), whereby he would give strategic excuses for why we couldn’t get together for an elusive cup of coffee. Things like “I’m in Hawaii” or “My favorite episode of Laguna Beach is on tonight.” In short, he was smartly maintaining the stealthiness of his startup.
All of that changed in October, however, when Cerimon emerged from the shadows with $70 million in first-round funding from MPM Capital, Nomura Phase4 Ventures and OrbiMed Advisors. The deal caused hyperventilation among other life sciences entrepreneurs, who wondered both if Cerimon had raised too much money and how their companies could also secure such a stash. The press release said that the company would focus on “unmet medical needs” and that it had acquired the rights to sell two topical formulations of a non-steroidal anti-inflammatory drug.
In celebration of this massive fund-raising coup, Cerimon last night hosted a swanky party at Restaurant L in Boston (a few grand of that $70 million is now formally accounted for). Restaurant staff was dressed in hospital scrubs, most of Cerimon’s San Francisco staff was in attendance and the pricey red wine was topped only by the tasty tuna tartare. Oh, and everyone got a long-sleeved Cerimon T-shirt upon exit.
The first person I ran into, of course, was Sekhri himself. He unnecessarily apologized for the past year of strategic avoidance, and then briefly discussed how excited he was by what Cerimon was doing. But it wasn’t the time for in-depth conversation, so I instead tried to judge the level of passion from other company employees (consider it the cocktail party equivalent of cold-calling). This might come off as simplistic – and perhaps obvious in regards to a startup – but the people I spoke to expressed a heartfelt devotion to what Cerimon is creating, particularly in its lead candidate (the aforementioned anti-inflammatory cream). I don’t always see this with non-CEOs/founders of startups, who often express hopeful optimism tempered by the wry understanding that it might all fall apart tomorrow. Maybe it’s the $70 million, but this is a company that is convinced that it could be a $1 billion behemoth. A few other party-related observations:
*** No, I’ve never heard of a major party being thrown to celebrate a Series A funding. Then again, I also haven’t heard of too many Series A rounds that generate $70 million.
*** Cerimon was incubated in Boston, but Cerimon is actually based in San Francisco. The handful of remaining Boston-area staffers are expected to move West shortly.
*** One person I spoke with briefly was Paul Hastings, a Cerimon board member who last week was named CEO of OncoMed Pharmaceuticals. For those who don’t remember, OncoMed is the cancer stem cell company I wrote about in October. Hastings replaces founding CEO Jim Woody, who is a partner with OncoMed backer Latterell Venture Partners. Hastings explained last night that he had five or six CEO offers on the table at similar terms, but took the OncoMed position because he believes it could become the next Genentech. As I’ve said before – and with apologies to Cerimon – OncoMed is probably the single most intriguing company I’ve covered all year, because it is literally looking toward the Holy Grail of treating the root cause of cancer.
*** A bunch of MPM Capital folks were obviously in attendance, and tonight there will be a different party for the former MPM folks who recently spun out to form Clarus Capital. The occasion is the closing of Clarus’ inaugural fund with $500 million, and also is sure to feature tasty wine. Perhaps the most noteworthy item about the Clarus fund-raising is that it only took two months to complete. This is quick by any VC standard, and stands in stark contrast to several Boston-area life sciences firms that are having fund-raising difficulties. It also is worth mentioning that the Clarus principals still must finish investing the current MPM Capital fund (a bit of dry powder remains), which means that the first Clarus portfolio company won’t be added until early 2006.
|
|
Want to reach over 27,900 PE Week Wire subscribers? Learn How
|
Top Three |
ChannelSoft Technology Co. Ltd., a Beijing-based provider of a telecom service platform and call-center middleware products in China, has raised $31 million in second-round funding. Backers include Walden International, SAIF and China Science Merchant. The company was founded in October 2000. www.qnuse.com
Visage Mobile, a San Francisco-based mobile virtual network operator (MVNO) enabler, has raised $30 million in Series D funding. Nomura International led the deal, and was joined by return backers Worldview Technology Partners, Mobius Venture Capital, Advanced Technology Partners, Vesbridge Partners, Emergence Capital Partners, Palisades Ventures and Selby Venture Partners. The company has raised around $82 million in total VC funding since its 2001 inception. www.visagemobile.com
Apax Partners has agreed to sell Zenesus Holdings Ltd. to Cephalon Inc. (Nasdaq: CEPH) for approximately $360 million in cash. The deal is expected to close by the end of Q1 2006. Zenesus is the parent company of Zenesus Pharma Ltd., a UK-based drug company focused on critical care, oncology and pain management. www.zeneuspharma.com
|
VC Deals |
JumpTap Inc., a Cambridge, Mass.-based provider of mobile search solutions, has raised $21 million in second-round funding. Redpoint Ventures was joined on the deal by return backers General Catalyst Partners and BCE Capital. www.jumptap.com
Times Internet Ltd., the digital venture of Indian media house Bennett, Coleman & Co. Ltd., has raised $7 million in VC funding from WestBridge Capital Partners. in.indiatimes.com
Metaboli, a France–based provider of digital distribution for video games via broadband, has raised 6 million euros in second-round funding. New backers include Intel Capital, Innovacom and Alven Capital. www.metaboli.fr
SPI Dynamics Inc., an Atlanta–based provider of Web application security assessment and testing products, has received a strategic investment from Visa International. www.spidynamics.com
Ketera Technologies Inc., a Santa Clara, Calif.-based provider of on-demand spend management solutions, has raised $13 million in fourth-round funding. Emergence Capital and Concentric Equity Partners co-led the deal, and were joined by return backers Kleiner Perkins Caufield & Byers, Integral Capital Partners and Foundation Capital. The company has now raised nearly $70 million in total VC funding since its 2000 inception. www.ketera.com
Multispectral Imaging Inc., a Sparta, N.J.–based provider of infrared detectors, has raised $4.65 million in Series B funding. Spencer Trask led the deal, and was joined by fellow return backers SAS Inv*stors and Rho Ventures, plus new backers Battelle Ventures and its Innovation Valley Partners affiliate.
Sionex Inc., a Bedford, Mass.-based developer of chemical sensor chips and systems, has secured $10.08 million of a $12 million Series C round, according to a regulatory filing. Backers include Navigator Technology Ventures, Morgenthaler Ventures, Rho Ventures, TechFarm Ventures and Draper Labs.
Njini Inc., a UK-based developer of data management software solutions, has secured $2.5 million of a $5 million Series B funding, according to a regulatory filing. Backers include Accel Partners and Add Partners.
|
Buyout Deals |
Nordic Capital has agreed to sell Anticimex Nordic AB to Ratos AB for SEK 1.65 billion (approx. $207 million). Anticimex is a Sweden-based provider of pest control, food safety and building environmental services. www.anticimex.se www.nordiccapital.se www.ratos.se
North Castle Partners and J.W. Childs have agreed to sell fitness club operator Equinox Holdings Inc. to company management and real estate development firm The Related Cos. The deal is valued at approximately $505 million, and is expected to close in January. www.equinoxfitness.com
Trinity Hunt Partners has acquired Lone Star Fasteners LP, a Houston, Texas–based manufacturer of specialty fasteners and gaskets. The deal was valued at approximately $33.5 million, with leverage arranged by Amegy Bank and D.B. Zwirn & Co. www.trinityhunt.com
Sun Capital Partners has received European Commission approval to acquire the European apparel division of Sara Lee Corp. (NYSE: SLE). No deal terms have been disclosed, although published reports price the transaction at between $250 million and $350 million.
Lincolnshire Management has acquired Dalbo Cos., a Vernal, Utah–based provider of services and materials for the extraction of natural gas. No financial terms were disclosed. www.lincolnshiremgmt.com
Cinven has received European Commission approval to buy Frans Bonhomme SAS from Apax Partners for approximately 900 million euros. Frans Bohomme is a France-based plumbing supply company which Cinven had originally sold to Apax three years ago for 520 million euros.
Texas Pacific Group has agreed to sell its 35% stake in Italian motorcycle company Ducati Motor Holding SpA to Investindustrial Holdings for an undisclosed amount.
PD Ports PLC, a UK-based port operator, reportedly has received a second takeover bid from Northern Echo of Australia. The news comes just one week after PD Ports agreed to be acquired for Gbp246 million from Endeavour Ports Ltd., which is backed by Industry Funds Management owns approximately half of Endeavour Ports, with other significant shareholders including 3i Group and Challenger Financial Services Group. No specific information was disclosed about the Northern Echo bid, except that it believed to be higher than the Endeavour bid. www.pdports.co.uk
|
Bad News |
Nobex Corp., a Durham, N.C.-based drug discovery and development company, has filed for bankruptcy and put its remaining assets up for sale. India-based research partner Biocon has offered to acquire Nobex’s intellectual property for around $3.5 million. Nobex had raised nearly $90 million in VC funding since 1996, from firms like Crescendo Venture Management, The Aurora Funds, A.M. Pappas & Associates, American Express, Hotung International, AEA Inv*stors and Odlander, Fredrikson & Co. www.nobexcorp.com
|
PE-Backed M&A |
Cooper-Standard Automotive, a Novi, Mich.-based automotive supplier, has agreed to acquire the Fluid Handling Systems business of ITT Industries Inc. (NYSE: ITT) for approximately $205 million. The deal is expected to close in Q1 2006. Cooper-Standard is a portfolio company of The Cypress Group and Goldman Sachs Capital Partners. www.cooperstandard.com
Financial Dynamics, a UK-based business communications firm controlled by Advent International, has acquired Dittus Communications, a Washington, D.C.-based public affairs firm. No financial terms were disclosed. www.fd.com
Ramesys Holding Ltd., a UK-based IT provider, has sold its education business to LDC for an undisclosed amount. The company also says that it plans to integrate its application business and re-brand its consolidation group as RedSky IT. Ramesys is a portfolio company of Kleinwort Capital Ltd. www.ramesys.co.uk
Chef Solutions, a Schaumburg, Ill.-based provider of refrigerated prepared foods and specialty bakery products, has acquired Fish House Foods Inc., a Vista, Calif.-based provider of refrigerated prepared foods to the retail food industry. No financial terms were disclosed. Chef Solutions is owned by Questor Partners. www.chefsolutions.com www.fishhousefoods.com
Axeda Corp., a provider of device relationship management software and services, has acquired the DRM business and related holdings of ITA Holdings Inc. for $7 million. JMI Equity provided financing for the acquisition, and also provided an undisclosed amount of working capital for ongoing Axeda operations. www.adexa.com
|
Firm & Fund News |
Clarus Ventures has closed its inaugural fund with $500 million in capital commitments. www.clarusventures.com
Verge, a New Mexico-focused seed-stage venture firm, has closed its inaugural fund with $15 million in capital commitments. www.vergefund.com
|
Human Resources |
Paul, Weiss, Rifkind, Wharton & Garrison LLP has elected six new partners, including: Angelo Bonvino (corporate, focused on M&A), Thomas de la Bastide (corporate, financing practice), Kaye Yoshino (Tokyo-based corporate, focused on cross-border transactions), James Brochin (litigation), Catherine Nyarady (litigation) and Eric Stone (litigation). www.paulweiss.com
Harkit Bhatia has been named CEO of Ritchie Capital Advisors Asia-Pacific. He has spent the past 11 years in various Asian assignments for GE, including his most recent role as president of Asia-Pacific corporate financial services. www.ritchiecapital.com
Roland Van der Meer, a general partner with ComVentures, has joined the board of Axesstel Inc. (AMEX: AFT), a provider of fixed wireless voice and broadband data products. www.axesstel.com
___________________
Corrections: Highroads is a provider of benefits lifecycle management solutions. Also, NexTest Systems Corp. was incorrectly identified as NextTest Systems Inc
Monday Mouth-Off
The air is cold, deadlines are closing in and someone at SavaJe Technologies sent a $40 million funding announcement to wire services a day early. In other words, it’s time for Monday Mouth-Off:
First up were some varied responses to last Tuesday’s piece on Tom Hicks, who has returned to the private equity market via his family investment office. AD writes: “Great piece on Tom Hicks. It goes without saying that the reason Hicks – and likewise Schwartzman (Blackstone) and Kravis (KKR) – are so successful is that they’re as hungry to succeed today as when they first started out. They may have moved to fancier addresses, but still wake up each morning yearning to win.
K, however, has a very different opinion: “You are buying Tom Hick’s excuses. This is a guy who single-handedly built and destroyed Hicks Muse. It was destroyed by Tom falling in love with telecom and Internet deals at the height of the bubble, and blowing up $2 billion of LPs capital. The LPs thought when they invested in Fund IV, Vintage 1998, that they were getting typical buy-and-builds in a few industry sectors like food and media where Hicks had particular strengths. What they got was a… fund worth 71 cents on the dollar at 6/30/05 because Tom himself led a raft of minority (almost all less than 10%) positions through PIPES in publicly-traded telecom companies that went spectacularly bust, besides investing $200 million in a series of small Internet deals that Hicks Muse later guaranteed a return on to investors to entice them to return to invest in Fund V – which many didn’t do. Tom fell victim to a disease a lot of other buyout GPs were getting at that time – Venture Capital IRR envy – and his case was worse than most. And now he’s saying ‘The LPs made me do it!’ Give me a break.
Moving on to The Boston Herald. Not much reaction here, save for not-so-gentle suggestions that only my Boston bias could explain my particular interest in this deal while a much larger newspaper company (Knight Ridder) is on the block with possible private equity buyers. Andrew does suggest a different bias on the part of others: “What’s fascinating about the Herald Media sale is how most MSM outlets — like The Boston Globe — focus so much on the big city daily (Boston Herald) and so little on the community newspapers that, as you write, are the jewel of this deal. If private equity firms could buy Herald Media without the Boston Herald, they would.” Not completely fair to the Globe (it had a good piece a few months back on the community papers unit of Herald Media), but the general point is well taken.
And now a few emails that make me feel warm and fuzzy. N writes in from a major accounting firm: “I had an internal training for the private equity group yesterday, and I wanted to let you know that the PE Week Wire is ‘recommended’ as mandatory reading for all auditors.” I don’t know how you “recommend” mandatory reading, but still… Oh, and Michael chimes in on my Google quote in Businessweek: “More than one word answer for Angry Man: If he knew that you were wrong about selling Google in the IPO, did he buy? If so, how much? You may never be my investment advisor, but you’ll always be my first stop for private equity news.” Thanks Michael, although I’d probably make more $$ as your investment advisor.
Oh, and the obligatory not-so-fuzzy from Arnie: “Only you would somehow link Duke Cunningham and private equity. Could it be that you just wanted an excuse to pile on a Republican? You are patheticly transparent.” In all candor, my wife did mention yesterday that I looked a bit pale. Anyway, enjoy the only day in which the week still seems full of possibilities…
|
|
Want to reach over 27,800 PE Week Wire subscribers? Learn How
|
Top Three |
SavaJe Technologies Inc., a Chelmsford, Mass.-based provider of mobile telephony software, has raised $40 million in new funding. Investcorpled the deal, and was joined by return backers VantagePoint Venture Partners, Ridgewood Capital, RRE Ventures and Vodafone Ventures. www.savaje.com
RSA Security Inc. (Nasdaq: RSAS) has agreed to acquire Cyota Inc., a New York-based provider of online security and anti-fraud solutions to financial institutions. The deal is valued at $145 million in cash, and is expected to close within the next 30 days. Cyota has raised over $33 million in total VC funding since its 1999 inception, from firms like Quan Management, Israel Seed Partners, Poalim Capital Markets, Jafco, Giza Venture Capital, Bessemer Venture Partners and RRE Ventures. www.rsasecurity.com www.cyota.com
Verizon Communications Inc. (NYSE: VZ) has confirmed that it is considering a sale of its directories publishing group. The deal could fetch up to $17 billion. www.verizon.com
|
VC Deals |
World Wide Packets Inc., a Spokane Valley, Wash.-based provider of carrier Ethernet solutions, has raised $25.5 million in fourth-round VC funding. Eagle river Holdings and Rally Capital co-led the deal, and were joined by return backers Argo Capital, Azure Capital Partners, Madrona Venture Group, Northwest Venture Associates and Entrepia Ventures. The company has raised around $120 million in total VC funding since its 2000 inception. www.wwp.com
Mimosa Systems Inc., a Santa Clara, Calif.-based provider of information management solutions, has raised $11 million in Series B funding. Jafco Ventures led the deal, and was joined by return backers August Capital, Clearstone Venture Partners and Lighthouse Capital Partners. www.mimosasystems.com
Bharti Telesoft Ltd., an India-based provider of value-added service platforms to wireline and wireless carriers, has raised $13.5 million in new VC funding. Westbridge Capital Partners led the deal with an $8 million commitment, and was joined by Sequoia Capital and Cisco Systems. www.bhartitelesoft.com
Attensa Inc., a Portland, Ore.-based developer of an RSS network that provides information on any device, has raised $9 million in second-round funding. RSS Investors led the round with a $5 million commitment (it is the firm’s first deal), and was joined by return backers like SmartForest Ventures and Second Avenue Partners. www.attensa.com
MaXwareAS, a Trondheim, Norway–based provider of identity management and virtual directory solutions, has raised $5 million in first-round funding co-led by Four Seasons Venture and Viking Venture. www.maxware.com
BigFix Inc., an Emeryville, Calif.–based provider of enterprise security configuration management solutions, has raised $8.4 million in new VC funding. Thomas Weisel Venture Partners led the deal, and was joined by return backers Levensohn Partners, Selby Venture Partners and Split Rock Partners. The company has raised around $23 million in total VC funding since its 1997 inception. www.bigfix.com
MValent Inc., a Burlington, Mass.–based provider of automated application configuration management software, has raised $6 million in third-round funding. Return backers include Charles River Ventures, IDG Ventures and Polaris Venture Partners. www.mvalent.com
Mu Security Inc., a Sunnyvale, Calif.-based network security startup, has raised $4.02 million in Series A funding (including $750,000 in debt). Backers include Benchmark Capital and Accel Partners. www.musecurity.com
Verified Person Inc., a New York-based provider of background screening and identity verification services, has raised $12 million in Series C funding (including $2.22 million to cancel out existing indebtedness), according to a regulatory filing. Backers include Rho Ventures and Sevin Rosen Funds. www.verifiedperson.com
Kazeon Systems Inc., a Mountain View, Calif.-based provider of unstructured information management solutions for the enterprise, has raised $6 million in Series C funding, according to a regulatory filing. Backers include Redpoint Ventures, Clearstone Venture Partners, Goldman Sachs and Network Appliance Inc. www.kazeon.com
Jacent Technologies Inc., a Santa Clara, Calif.-based provider of phone sales automation solutions, has raised $2 million in Series C-1 funding, according to a regulatory filing. Backers include Wand Partners, Azure Capital Partners and Steve Wozniac. www.jacent.com
Personeta Inc., a Naperville, Ill.-based provider of network service control and IP multimedia subsystem application servers, has raised $12 million in Series D funding. Azure Capital Partners led the deal, and was joined by return backers Duchossois Technology Partners and Lightspeed Venture Partners. www.personeta.com
HighRoads Inc., a Woburn, Mass.-based provider of lifecycle management solutions, has raised $8 million in Series B funding. Egan-Managed Capital led the deal, and was joined by return backers Kodiak Venture Partners, RBC Capital and AH Ventures. www.highroads.com
Allozyne Inc., a Seattle-based, has raised around $3.5 million in Series A funding, according to a regulatory filing. Backers include MPM Capital, Arch Venture Partners, OVP Venture Partners and Amgen Ventures. www.allozyne.com
Enerage Inc., an Arcadia, Calif.-based developer of micro fuel cells, has secured $4.3 million of a $7 million Series A round, according to a regulatory filing. Backers include Dragon Fund and Acorn Campus Fund. www.enerage.com
Skyhook Wireless Inc., a Boston, Mass.-based developer of a metro-area positioning system that leverages Wi-Fi access points, has raised $6.5 million in Series B funding, according to a regulatory filing. Backers include Bain Capital Ventures, Intel Capital and Nokia Corp. The company previously raised around $640,000 in Series A funding from groups like Common Angels, at a post-money valuation of approximately $5.4 million. www.skyhookwireless.com
|
Buyout Deals |
The Riverside Co. has acquired Universal Air Filter Co., a Sauget, Ill.–based provider of customer air filters used in cooling applications. No pricing terms were disclosed for the deal, which includes leverage from Allied Capital Corp. www.riversidecompany.com www.uaf.com
EQT has agreed to sell Sweden-based Com Hem AB to The Carlyle Group and Providence Equity Partners. Com Hem is a provider of TV, broadband Internet and telephony services, and was acquired by EQT from TeliaSonera in June 2003. No financial terms were disclosed, but the Wall Street journal pegs the deal at approximately $1.2 billion. www.eqtpartners.com www.comhem.se
Gemstar-TV Guide International Inc. has sold SkyMall Inc. to Spire Capital Group, Greenspun Media and ZelnickMedia Corp. No pricing terms were disclosed for the deal, which had leverage arranged by Harris NA. SkyMall is a Phoenix-based publishing and marketing services company known for its quarterly in-flight publication. www.skymall.com
GTCR Golder-Rauner has agreed to acquire EK Success Ltd., a Clifton, N.J.–based provider of scrap-booking and paper-based craft products. No financial terms were disclosed for the deal, which is expected to close in February. Dresdner Kleinwort Wasserstein will underwrite the debt financing. www.eksuccess.com
Vestar Capital Partners has agreed to acquire Switzerland-based Nybron Flooring International from HIAG and Nordic Capital. No financial terms were disclosed. www.vestarcapital.com
|
PE-Backed IPOs |
NextTest Systems Inc., a San Jose, Calif.-based provider of automated test equipment for the semiconductor industry, has filed to raise $80 million via an IPO. It plans to trade on the Nasdaq under ticker symbol NEXT, with Merrill Lynch serving as lead underwriter. Significant shareholders include Needham Capital Partners and J&W Seligman & Co. NexTest filed for a $90 million IPO in 2004, but withdrew registration this past January. www.nextest.com
PixelPlus Company Ltd., a South Korea-based developer of CMOS image sensors for use in mobile camera phones, has filed to raise around $75 million via an IPO of 4.5 million American depository shares at between $12.50 and $14.50 per ADS. It plans to trade on the Nasdaq under ticker symbol PXPL, with Jefferies Broadview serving as lead underwriter. Shareholders include Jafco Asia Technology Fund, Postech Venture Capital and Korea Venture Fund. www.pixelplus.com
|
PE-Backed M&A |
iWatt Inc., a Los Gatos, Calif.-based provider of digital power conversion to IC technology, has acquired the IKOR division of Advanced Energy Industries Inc. (Nasdaq: AEIS). No financial terms were disclosed. iWatt has raised around $25 million in VC funsing since its 2000 inception, from firms like Horizon Ventures, PTI Ventures, Sigma Partners and VantagePoint Venture Partners. www.iwatt.com
|
Firm & Fund News |
Intel Corp. has formed a $250 million venture capital fund focused on technology companies in India. www.intel.com/capital
|
Human Resources |
Philip Yau and Richard Walsh have joined the private equity funds group of UBS as executive directors. Yau will work out of San Francisco, and previously was a principal with Probitas Partners. Walsh will be based in Stamford, Conn., and previously was a director of institutional equity sales at Deutsche Bank. www.ubs.com
Ohad Finkelstein has joined Venrock Associates as a venture partner, focused on deals in Europe and the Middle East. He most recently served as chairman, president and CEO of European Interoute Telecom Group. www.venrock.com
Andrew Platt has joined Norwest Equity Partners as director of business development, focused on generating proprietary deal-flow through a variety of non-traditional sources. He previously was with GE Equity and GE Asset Management. www.nep.com
Orlando Mendoza has joined Edison Venture Fund as an associate within the firm’s analysis group, while Rob Finn has joined as a business development associate. www.edisonventure.com
If you do not receive this within five minutes, please try and sign in again. If the problem persists, please
email: