PE Week Wire — Friday 3/5

Get The Wire in your inbox each morning! Just send us an email.

Kohlberg Kravis Roberts & Co. (KKR) has agreed to acquire mattress maker Sealy Corp. in a transaction valued at approximately $1.5 billion. The seller is an investment group that includes Bain Capital, Charlesbank Capital Partners, JPMorgan Partners, CIBC Argosy Merchant Fund and BancBoston Capital. KKR and Sealy management will acquire around 92% of the company, with existing Sealy shareholders retaining the final 8 percent. No details were released in regards to which firms will be providing the deal’s debt financing. Goldman Sachs and J.P. Morgan Securities served as financial advisors to Trinity, N.C.-based Sealy, while Kirkland & Ellis advised the selling shareholders and Simpson Thacher & Bartlett advised KKR.

Ask Jeeves Inc. (Nasdaq: ASKJ) has agreed to acquire Interactive Search Holdings Inc., an Irvington, N.Y.-based online search and media company whose subsidiaries include iWon, Excite and MaxOnline. Major investors in Interactive Search include Bain Capital and JPMorgan Partners. Ask Jeeves will issue 9.3 million shares of common stock and options and pay $150 million in cash, under terms of the acquisition agreement. This reflects an aggregate purchase price of $343 million based on Tuesday’s closing price of Ask Jeeves common stock. In addition, Ask Jeeves may pay an additional $17.5 million in cash based on various operating performance milestones.

Key Principal Partners has led a $100 million equity investment to recapitalize ASIMCO, a Beijing, China-based manufacturer of automotive and heavy-duty truck components. In conjunction with the financing, ASIMCO has changed its name to ASIMCO Technologies Ltd.

Synarc Inc., a Maynard, Mass.-based provider of medical imaging and molecular marker services for clinical trials, has raised $10.2 million in Series B funding. New investor Schroder Ventures Life Sciences joined return backer U.S. Venture Partners on the deal.

Acorda Therapeutics Inc., a Hawthorne, N.Y.-based biotech company focused on spinal cord injuries, has raised $11.5 million in new VC funding from unnamed new and existing investors. The company had filed last year for an IPO, but withdrew the request in January 2004. It has now raised over $140 million in VC funding since its 1995 inception, including a $55 million Series E deal in May 2003 at a post-money valuation of approximately $104 million.

Mariner Energy Inc., a Houston-based oil and gas exploration company, has completed its merger with an affiliate of private equity funds Acon Investments and Carlyle/Riverstone Global Energy and Power Fund II . Mariner previously was owned by an Enron Corp. affiliate known as Joint Energy Development Investments LP. The deal is valued at $271.1 million, and provided for repayment of Mariner’s existing debt. Carlyle/Riverstone now owns a 67% interest in Mariner, while Acon owns the remaining 33 percent. Debt financing was provided by The Union Bank of California and BNP Paribas.

The Chicago Tribune is reporting that Willis Stein & Partners has agreed to acquire bankrupt Jays Foods LLC, a snack food business best known for its potato chips. This is the second snack food company buyout for Willis Stein in less than a week, as it previously announced acquisition of Lincoln Snack Co. from Brynwood Partners.

Change Capital Partners has agreed to acquire UK hardware retailer Robert Dyas for £61 million (approx. $114 million).

Workscape Inc., a Framingham, Mass.-based provider of Internet-based human resource services, has acquired Performaworks Inc., a Burlington, Mass.-based provider of management software. No financial terms were disclosed. Performaworks has raised around $25 million in VC funding since its 1999 inception, including a $13.4 million infusion in 2003 at a post-money valuation of approximately $16.2 million. Investors included Deson Ventures and Pequot Ventures. Workscape has raised over $150 million in VC funding from ABS Capital Partners, America Online, Coleman Swenson Booth, DaimlerChrysler, HLM Management Co., Sun Microsystems and Warburg Pincus.

Index Ventures has added Kevin Johnson and Gianni Garotta as executives-in-residence, and Ennio Ongini as a venture advisor. Johnson was most recently with Cambridge Antibody Technologies, Garotta served as VP of academic collaborations at Serono and Ongini is head of discovery at Nicox.

John Doerr, a general partner with Kleiner Perkins Caufield & Byers, and his wife Ann have given an undisclosed amount to the Stanford University Medical Center, in order to establish a directorship at the new Stanford Cancer Center. Radiation oncologist Steven Leibel M.D. has been named the first Ann & John Doerr Medical Director of Stanford Cancer Center, and will spearhead all cancer programs in patient care and clinical research.

WebMD Corp. (Nasdaq: HLTH) has privately placed $100 million of convertible redeemable exchangeable preferred stock with PCG Corporate Partners Fund, a private equity vehicle managed by Pacific Corporate Group and principally backed by the California Public Employees’ Retirement System (CalPERS).



Alibris Inc., an Emeryville, Calif.-based operator of an online marketplace for used and hard-to-find books, has filed to raise $25 million via an IPO of common stock on the Nasdaq under proposed ticker symbol ALBR. Company shareholders include CMGI @Ventures, Lightspeed Venture Partners and Aberdare Ventures.

Cedarburg Pharmaceuticals Inc., a Grafton, Wisc.-based drug maker, has raised $7 million in Series A funding from LOF Partners, the life sciences investment arm of Sanders Morris Harris Group Inc.

Jim Johnson, vice chairman of Perseus LLC, has agreed to head a vice presidential search committee for John Kerry , the likely Democratic Party nominee for president.

SecurePipe Inc., a Chicago-based provider of managed network security services, has raised $3.2 million in new VC funding from First Analysis, Prism Opportunity Fund and the Argentum Group.

ServiceBench Inc., a Fairfax, Va.-based provider of service supply chain management applications, has raised $3.2 million in Series C funding. JMI Equity Fund led the deal, and was joined by return backers NextGen Capital, WomenAngels and WWC Capital Fund.

Click Tactics Inc., a Waltham, Mass.-based provider of direct marketing programs, has raised $3.6 million in Series E funding. TH Lee Putnam Ventures and the Wakefield Group co-led the round.

First Atlantic Capital has agreed to acquire Prestolite Electric Holding Inc., an Ann Arbor, Mich.-based maker of alternators and starter motors, from Genstar Capital. No financial terms were disclosed on the transaction, which is expected to close in April.

EQT Partners has completed its previously announced sale of Finland-based bakery Vassan & Vassan to CapVest. Financial terms of the deal were not disclosed.

Covad Communications Group Inc. (OTC BB: COVD) has agreed to acquire GoBeam Inc., a Pleasanton, Calif.–based provider of voice-over-IP services. The all-stock deal is valued at approximately $48 million, and is expected to close in May. GopBeam has received VC funding from Sprout Group, Enterprise Partners and CMEA Ventures.

Bill Kane has joined the private equity practice of merchant bank MTS Health Partners as a senior managing director. He has spent the past 17 years with Harvest Partners, including the last 12 as a senior managing partner.

Inhibitex Inc., an Alpharetta, Ga.-based producer of antibody-based products for the prevention and treatment of serious bacterial and fungal infections in hospital environments, has filed to raise $86.25 million via an IPO of common stock on the Nasdaq under proposed ticker symbol INHX. Company shareholders include New Enterprise Associates, Alliance Technology Ventures, William Blair Capital Partners, Essex Woodlands Health Ventures, Capital Technologies CDPQ Inc. and Burrill & Co.

Linktone Ltd., a Shanghai, China-based provider of wireless entertainment to mobile phone users in China, will begin trading today on the Nasdaq under ticker symbol LTON. The company yesterday priced 6.14 million American Depository Shares at $14 per share, for a total IPO take of $85.96 million.


Terra Firma, a European buyout firm with offices in London and Frankfurt, has closed its Terra Firma Capital Partners II fund with €2 billion (approx. $2.48 billion). The firm is a successor to Nomura International PLC’s principal finance group, which had been established in 1994 and run by Guy Hands, who now serves as CEO of Terra Firma.

SkinMedica Inc., a Carlsbad, Calif.-based drug company focused on the dermatology market, has raised $25.8 million in Series D funding. Perseus-Soros BioPharmaceutical Fund led the deal, and was joined by fellow new investor St. Paul Venture Capital. Return backers Apax Partners and domain Associates also participated. Andrew Schiff, a managing director with Perseus-Soros, will join the SkinMedica board of directors.

Archipelago Holdings Inc., a Chicago-based electronic stock exchange operator, has filed to raise $150 million via an IPO of common stock on the Nasdaq under proposed ticker symbol ARCA. Last December, the company received a $125 million private equity investment from General Atlantic Partners. General Atlantic and Goldman Sachs (which is lead underwriting the IPO) are Archipelago’s largest shareholders.

Fortinet Inc., a Santa Clara, Calif.-based provider of ASIC-powered network firewall systems, has raised $50 million in mezzanine funding. Return backers included RedPoint Ventures, Meritech Capital Partners, Acorn Campus and DEFTA Partners.

Restaurant Technologies Inc, an Eagan, Minn.-based provider of bulk cooking oil management services to the restaurant industry, has raised $25 million in new venture funding. Phil Clough, a general partner with ABS, will join the Restaurant Technologies board of directors.

OmniSonics Medical Technologies Inc., a Wilmington, Mass.-based medical device maker focused on vascular occlusive disease, has raised $10 million in additional Series C funding. The company announced a $26 million first close on the round last November, and then raised $7 million more. The latest $10 million brings the entire Series C total up to $43 million with a post-money valuation between $80 million and $90 million. General Electric Pension Trust and Nomura International PLC co-led the overall round, and were joined by Prism Venture Partners, Domain Associates, Canaan Partners, Johnson & Johnson Development Corp., Hambrecht and Quist Capital Management, New England Partners, Phoenix Investment Counsel and Mitsubishi International Corp.

OpenPages Inc., a Waltham, Mass.-based provider of enterprise compliance management solutions, has raised $10 million in Series C funding. Matrix Partners and Sigma Partners co-led the deal, and were joined by fellow return backers Goldman Sachs Capital Partners, Globespan Capital Partners and North Hill Ventures. The company now has raised around $64 million in total VC funding since its 1996 inception, including a $40 million Series B deal in 2000 at a post-money valuation of approximately $190 million.

Ultimus Inc., a Cary, N.C.-based provider of business process management (BPM) and workflow automation solutions, has received a $10 million investment from Advent International. As part of the agreement, Michael Pell, a partner with Advent, and Kathleen O’Donnell, a principal with Advent, will join the Ultimus board of directors.

Q-Cells AG , a Munich-based maker of high-performance solar cells, has received a € 10 million investment from Apax Partners.

Encore Acquisition Co. , a Ft. Worth, Texas-based portfolio company of Warburg Pincus , has agreed to acquire Plano, Texas-based Cortez Oil & Gas Inc. for $123 million from Natural Gas Partners .

AdvanTech Solutions , a Tampa, Fla.-based provider of integrated human resource management services, has completed a $26.2 million recapitalization. The deal includes $20.2 million in new equity led by Trident Capital. And a $6 million revolving credit facility with Wachovia Bank. William Blair & Co. acted as placement agent and financial advisor to AdvanTech Solutions.

Moeller Group, a portfolio company of Advent International , has agreed to sell its busbar trunking systems division to Siemens AG . Terms of the deal, which is subject to German regulatory approval, were not disclosed.

  Applied Micro Circuits Corp. (Nasdaq: AMCC) has agreed to acquire 3ware Inc., a Sunnyvale, Calif.-based provider of network storage solutions. Under terms of the deal, Applied Micro will acquire all outstanding shares of 3ware stock for $150 million in cash, and will assume stock options based on an exchange ration to be determined at closing (expected to be around April 1). 3ware has raised approximately $80 million in VC funding since its 1997 inception, with investments coming from New Enterprise Associates, NeoCarta Ventures, Franklin Templeton, Comdisco Ventures, QTV Capital, Pacifica Fund, Selby Venture Partners, U.S. Venture Partners, VantagePoint Venture Partners and Veritas Software.

Wende Hutton has joined Canaan Partners as a venture partner focused on the life sciences sector. She most recently served as a general partner of Spring Ridge Ventures , and before that was a general partner with Mayfield Fund .

Joy Weiss has been appointed president and CEO of Dust Inc. , a Berkeley, Calif.-based provider of low-power wireless mesh networks. It is unclear how this will affect her status as executive-in-residence with Blueprint Ventures . Prior to singing on with Blueprint, Weiss served as president and CEO of Inviso. She also ran Esker, and spent 15 years at Nortel.

Greg Stanger , former chief financial officer of Expedia Inc. , has joined Technology Crossover Ventures as an executive-in-residence focused on the Internet and e-commerce spaces. TCV made a $50 million PIPE investment into Expedia in 2000, but sold its shares last August to Barry Diller’s InterActiveCorp.

Jeffrey Vanderbeek will reportedly step down from his Lehman Brothers post as head of global risk management, private equity and strategy. He is leaving to become principal owner and chairman of the New Jersey Devils hockey franchise.

Ultra Clean Holdings Inc. , a Menlo Park, Calif.-based provider of gas delivery modules for the semiconductor industry, has set its IPO offering price range to $10-$12, and set its number of offered shares to 9.1 million. The company is majority owned by an affiliate of buyout firm Francisco Partners, which acquired Ultra Clean in November 2002 from Mitsubishi Corp. As part of the proposed IPO, Francisco Partners will receive a one-time advisory fee of $2 million.

Memory Pharmaceuticals Corp. , a Montvale, N.J.-based drug company focused on the cenral nervous system (CNS), has set its IPO offering price range to $13-$15, and set its number of offered shares to five million. The company has raised over $77 million in VC funding from investors like Oxford BioScience Partners, Venrock Associates, Bioventures Investors, Alta Partners, OrbiMed Advisors, Global Biomedical Partners and Healthcare Ventures.

Advent International told Dow Jones that it plans to begin raising a new Latin American fund in the second or third quarter of this year.

Dow Jones also is reporting that Essex Woodlands Health Ventures has closed its sixth fund with $400 million. According to a January article in PE Week , the fund was oversubscribed and held a first close of $268.14 million.



Cytyc Corp. (Nasdaq: CYTC) has agreed to acquire Novacept Inc., a Palo Alto, Calif.-based medical device company focused on women’s health issues like excessive menstrual bleeding. The $325 million cash deal will be financed by up to $250 million in senior bank financing from Morgan Stanley – which is serving as financial advisor to Cytyc – and available cash from Cytyc. The deal is expected to close by the end of the first quarter. Novacept filed for an $86.25 million IPO in January, and listed major shareholders as Brentwood Venture Capital, Hambrecht & Quist Capital Management, Johnson & Johnson Development Corp., New Enterprise Associates, Prospect Venture Partners, Three Arch Capital and Vector Fund Management. The company raised around $68 million in total VC funding since its 1995 inception, including a $30 million infusion in 2002 at a post-money valuation of $95 million.


Insulet Corp., a Beverley, Mass.-based maker of a wireless insulin delivery pump for sufferers of diabetes, has raised $35.5 million in Series D funding. Alta Partners led the deal, and was joined by fellow new investors MedVenture Associates, TIAA-CREF, Piper Jaffray Ventures and Diamond Capital Management (acting as agent for Dow Employees Pension Plan and Union Carbide Employees Pension Plan). Return backers included Pequot Ventures, Versant Ventures, Schroder Ventures Life Sciences, Oakwood Medical Investors and founding investor Prism Venture Partners. The company now has raised around $70 million in VC funding since its 2001 inception, including a $22 million Series C deal in 2002 at a post-money valuation of approximately $45 million.


KPS Special Situations Funds of New York has closed its second fund with $404 million. The new vehicle will focus on making control investments in turnarounds, restructurings, bankruptcies and other special situations.

CentrePath Inc., a Waltham, Mass.-based provider of data center networking and services, has raised $4 million in Series A recap funding. Investors included Greylock, Pilot House Ventures and Roger Marino, co-founder of EMC Corp. The company was founded in 2000 as GiantLoop Network Inc. , and raised around $160 million in VC funding, including a $120 million Series C deal in 2001 at a post-money valuation of approximately $650 million. Investors on that deal included Greylock, Pilot House, Roger Marino, Cabletron Systems, CNT, 360networks and Sycamore Networks.


BlueRoads Corp., a San Mateo, Calif.-based provider of channel management software, has raised $5.3 million in Series B funding from ArrowPath Venture Capital and El Dorado Ventures.


Momenta Pharmaceuticals Inc., a Cambridge, Mass.-based biotech company that utilizes glynomics (the study of sugars), has raised $20.5 million in Series C funding. New investor Mithra Ventures joined return backers Polaris Venture Partners, Atlas Venture, MVM Life Science Partners and Cardinal Partners. The company now has raised over $45.5 million in total VC funding since its 2001 inception as Mimeon Inc., including a $19 million infusion last year at a post-money valuation of approximately $39.4 million.


Microfabrica Inc., a Burbank, Calif.-based maker of micro-machining process technology, has raised $15 million in Series B funding. WK Technology Fund led the deal, and was joined by existing investors DynaFund Ventures, Draper Fisher Jurvetson, Partech International, ChevronTexaco Venture Equities, Zone Ventures and Atherton Venture Partners. The company now has raised around $32 million in total VC funding since its 1999 inception, including a $5.7 million Series A1 financing in 2002 at a post-money valuation of approximately $30 million.


Appium Technologies AB, a Sweden-based provider of telecom application platforms, has raised SEK45 million (approx. $6.02 million) in new VC funding co-led by new investor InnovationsKapital and return backer Nordic Capital Partners.


LogLogic, a Sunnyvale, Calif.-based provider of secure appliances for real-time log analysis, has raised $5.5 million in first-round funding from Sequoia Capital and Telesoft Partners.


Bear Stearns Merchant Banking has invited Giuliani Partners into its CamelBak Products investment as a strategic investor. The agreement marks the first project Giuliani Partners and Bear Stearns have worked on since the pair announced its strategic partnership last year. Bernard Kerik, former police commissioner of New York City, will join CamelBak’s board of directors.


Time Warner Inc. (NYSE: TWX) has completed its $2.6 billion cash sale of Warner Music Group to an investor group that includes Thomas H. Lee Partners , Bain Capital , Providence Equity Partners and Edgar Bronfman’s Music Capital Partners.


Willis Stein & Partners has acquired Lincoln Snacks Co. from Brynwood Partners for an undisclosed amount. Brynwood had originally acquired a controlling interest in the Stamford, Conn.-based caramelized popcorn maker in 1998, and took the company private in October 2001. Hendrick Jartong, Lincoln Snacks’ president and CEO during Brynwood’s ownership, will leave the company, but continue to oversee Brynwood-controlled Signature Snacks Co. Sawaya Segalas & Co. LLC served as exclusive financial advisor to Lincoln Snacks and Brynwood Partners on this transaction. Willis Stein was advised by Mesirow Financial.


Harvest Partners has completed its previously announced acquisition of New Flyer Industries Corp., a Winnipeg, Canada-based manufacturer of heavy-duty transit buses, from KPS Special Situations Funds. No financial terms were disclosed. Lightyear Capital joined Harvest Partners on the deal’s equity tranche, while Citigroup Global Markets and UBS Investment Bank were joint lead arrangers and book managers for the senior debt financing. Subordinated debt financing was provided by the Province of Manitoba, OCM Mezzanine Fund, and affiliates of Citigroup Private Equity.


Cerberus Capital Management has agreed to acquire Guilford Mills Inc. (OTC BB: GMIL), a Greensboro, N.C.-based designer and manufacturer of engineered fabrics for the automotive, technical and apparel markets. Cerberus will pay $19 per share of outstanding Guilford Mills common stock, for a total equity value of $107 million. Goldman Sachs acted as exclusive financial advisor to Guilford Mills, and Rothschild Inc. acted as exclusive financial advisor to Cerberus. Weil, Gotshal & Manges LLP served as outside counsel to Guilford Mills, and Schulte Roth & Zabel LLP served as outside counsel to Cerberus.

Atlantic Broadband LLC, a cable systems acquisition platform of ABRY Partners and Oak Hill Capital Partners, yesterday completed its purchase of Charter’s cable systems serving subscribers in Miami Beach, Western Pennsylvania, The Maryland/Delaware peninsula and West Virginia. The $815 million purchase price consisted of $270 million of equity from ABRY and Oak Hill and $545 million in debt financing from a consortium led by Merrill Lynch, GE Capital and Societe Generale.

Golden Gate Capital and Whitney & Co. are recapitalizing their investment in nutrition products company Herbalife International. Through the refinancing arrangement, Herbalife will issue $275 million in unsecured notes due 2011, with the proceeds being used to buyback $220 million of preferred stock and $52 million of senior notes. The transaction will give Herbalife a tally of $525 million in total outstanding debt.


3i Group PLC reportedly has paid around €50 million to acquire Berlin, Germany-based Lichtwer Pharma AG, which sells garlic tablets and other natural medicines.


Blackstone Group portfolio company Graham Packaging recently refinanced its senior secured credit facilities. Deutsche Bank Securities acted as sole lead arranger for the refinancing, which reduced the interest rate coupon on Graham’s term loan from LIBOR plus 400 basis points to LIBOR plus 275 basis points, with additional step-downs possible depending on the company’s debt rating.


Advent International has led an acquisition of the Duffy Group, a Basil, Switzerland-based duty-free retailer, from the Weitnauer Group . Other equity investors included Grupo Areas SA and French catering company Elior. No financial terms of the transaction were disclosed. As part of the deal, Advent has appointed veteran industry executive Julian Diaz as Duffy’s CEO, and named Juan Carlos Torres, a senior partner in Advent’s Latin American deal group, as Duffy’s president.


Lightbridge Inc. (Nasdaq: LTBG) has agreed to acquire payment solutions business from InfoSpace Inc. (Nasdaq: INSP) for $82 million in cash.


Leslie “Bud” Lewis has joined Watermill Ventures as an operations partner. Prior to joining the Waltham, Mass.-based firm, Lewis served as co-founder, president and CEO of Asahi-America Inc. and affiliated companies.


Christopher Cummings has joined America’s Growth Capital as a partner, after having served as head of Salomon Smith Barney ‘s Asia-Pacific industrial investment banking group in Hong Kong. He will lead banking efforts in the firm’s new San Francisco office.


David Brinkley has been hired to lead the M&A consulting practice at DFI Corporate Services Inc. He recently earned an MBA from Columbia University, and has worked at both ProspectStreet Ventures and McDuff Capital.


Rafael Pastor , a founding partner of Soneshine, Pastor & Co. and its VC affiliate SP Capital, has been named executive chairman of TEC International .


The Merced County Retirement System of California has selected three managers to oversee its first-ever private equity allocation: Invesco will manage $10 million, while Adams Street Partners and Pomona Capital will each manage $5 million for the retirement system. None of the three managers have yet outlined an investment strategy or an investment timeline. The pension fund manages a $410 million investment portfolio.



TransMolecular Inc., a Birmingham, Ala.-based biotech company focused on the treatment of cancer and pain, has raised $33.2 million in Series C funding. Easton Hunt Capital Partners led the deal, and was joined by fellow new investors Diamond Capital Management, agent for the Dow Pension Fund, Oakwood Medical Investors, MDS Capital, Aperture Venture Partners, S.C.O.U.T. Healthcare Fund advised by Greer Capital, Cogene BioVentures, Global Biomedical Partners and POSCO BioVentures. Return backers included Tullis-Dickerson, TVM Techno Venture Management, President Life Sciences and Pacific Horizon Partners.

Code, Hennessy & Simmons has completed its acquisition of AMF Bowling Worldwide Inc. (NYSE: PINRT), and taken it private. The deal is valued at approximately $670 million, of which $250 million will be financed through the sale of certain real estate assets under a sale-leaseback facility. Debt financing consists of $135 million in term loans under a new senior secured credit facility, as well as a recently completed offering of $150 million in senior subordinated notes. Finally, Code Hennessey – through an acquiring affiliate named Kingpin Holdings – will make a $135 million equity investment. a $135 million equity investment was made by Kingpin Holdings, the acquiring affiliate of CHS. Under the terms of the agreement, AMF shareholders will receive $25.00 in cash for each common share.

Scotiabank has appointed Gregory Milavsky to the position of managing director and group head of its LBO arm, Scotiabank Private Equity Investments. Milavsky first joined Scotiabank in 2000, when the bank acquired e-Scotia.

InPhase Technologies Inc., a Longmont, Colo.-based provider of holographic data storage solutions, has raised $8.7 million in new Series B funding, for a round total of $15 million. New Venture Partners led the deal alongside fellow new investors Yasuda Enterprise Development Co., Japan Asia Investment Co. and ALPS Information Technology Fund. Return backers included Hitachi Maxell Ltd. and Signal Lake.

IC Media Corp., a Santa Clara-based provider of CMOS image sensors, has raised $22.5 million in Series C funding led by UMC Capital.

Quarry Technologies Inc., a Burlington, Mass.-based supplier of carrier-class security service routers, has raised $18 million in Series D funding. New investor Westbury Partners participated alongside return backers 3i Group, Jerusalem Venture Partners, ARCH Venture Partners, Sofinnova Ventures and Walden International.

YottaYotta Inc., an Edmonton, Canada-based provider of network storage solutions, has raised Cdn$21 million in new funding. TechnoCap Inc. led the deal with over Cdn$13 million in commitments, and was joined by Pryces Ltd., Regime des rentes du Mouvement des Caisses Desjardins, Bombardier Trust UK, Optical Capital Group LLC, Grosvenor Venture Partners, Bank of America Investment Corp. and Technology Partnerships Canada.

Quigo Technologies Inc., a New York-based provider of online advertising and search engine solutions, has raised over $5 million in first-round funding from Highland Capital Partners. As part of the transaction, Bob Davis of Highland has joined the Quigo board of directors.

SyGate Technologies Inc., a Fremont, Calif.-based provider of networking and security technologies, has raised $12.38 million in Series E funding.

Rhone Capital has completed its $342 million acquisition of the Alumina Ltd. and Alcoa Inc. specialty chemicals joint venture. The sale was originally announced last November, and the price includes the assumption of debt and other obligations.

Reuters is reporting that Kohlberg Kravis Roberts & Co. ‘s MTU platform is scheduled to issue a €240 million bond sometime in March, with proceeds being used to support the firm’s December acquisition of the aero engines maker. J.P. Morgan and Credit Suisse First Boston are leading the bond.

AlpInvest Partners reportedly intends to make a €152 million bid to acquire Delft Instruments, a publicly held Dutch technology company. The offer, at €17.50 a share, represents a 17% premium to Delft’s closing price in Friday’s trading session, and Delft expects its supervisory and management to boards to recommend the bid.

Allen Systems Group Inc. has acquired Dirig Software Inc. , a Nashua, N.H.-based provider of adaptive J2EE performance management solutions. Financial terms of the deal were not disclosed. Dirig hasc raised over $22 million of VC funding since its 1997 inception, with investors including Battery Ventures, Enterasys Networks, JMI Equity and Longworth Venture Partners.

SHPS Inc. , a portfolio company of Welsh Carson Anderson & Stowe , has agreed to acquire Landacorp Inc. (Nasdaq: LCOR) for around $56 million. The offer, valued at $3.09 a share, represents a 3% premium to the stock’s closing price at the end of last Friday’s session. The deal comes just days after SHPS announced that it was acquiring National Health Services for $10 million.

Morgenthaler Partners has promoted Simon Feiglin to the position of principal. He joined the firm as a senior associate in 2000, after a stint with Willis Stein & Partners.

Joseph Harris , a partner with Trillium Lakefront Partners , has joined the board of directors at Diomed Holdings Inc. (AMEX: DIO).

Alnylam Pharmaceuticals Inc., a Cambridge, Mass.-based life sciences company focused on RNA interference, has filed to raise $86.25 million via an IPO of common stock on the Nasdaq under proposed ticker symbol ALNY. The company was formed last year through the merger of Alnylam Pharmaceuticals and Ribopharma AG. Major shareholders include Polaris Venture Partners, Abingworth BioVentures, Arch Venture Partners, Cardinal Partners and Atlas Venture.

Acadia Pharmaceuticals Inc., a genomics-based drug discovery company headquartered in San Diego, has filed to raise $86.25 million via an IPO of common stock on the Nasdaq under proposed ticker symbol ACAD. The company originally filed for a $75 million IPO in December 2000, but withdrew the offering in August 2001. It has raised around $75 million in total VC funding, with major investors including Oxford Bioscience Partners, OrbiMed Advisors, Federated Kauffman Fund, ABN AMRO Ventures and Hambrecht & Quist Capital Management.

Cutera Inc., a Brisbane, Calif.-based maker of aesthetic laser systems for dermatologists and plastic surgeons, has set its IPO offering range to $14-$16 per share, and its number of offered shares to 3.582 million. The company was formerly known as Altus Medical Inc., and had filed for a $60 million IPO in January 2002, before pulling its registration papers in June of that year. The company has raised over $7.3 million in venture capital funding from MedVenture Associates and Alta Partners.

Charter Venture Capital has received a $30 million commitment from C.M. Capital Corp. for its inaugural life sciences fund. The vehicle’s overall target capitalization is $100 million, and already has lined up Tri-State Growth Capital Fund (managed by Ft. Washington Capital Partners) for its second closing.


Get last week’s entire PE Week Wire here.


This is a free sample of content available to paid subscribers of Private Equity Week.
Click here for more information.