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The Lubrizol Corp. (NYSE: LZ) has agreed to acquire Noveon International Inc., a Cleveland-based provider of specialty chemicals for consumer and industrial applications. The deal includes a cash payment of $920.2 million plus the assumption of net debt. Noveon was created in February 2001 by AEA Investors, DLJ Merchant Banking and MidOcean Capital to acquire the Performance Materials division of Goodrich Corp. It filed for a $345 million IPO three months ago. www.noveoninc.com
Visto Corp., a Redwood Shores, Calif.-based provider of mobile access solutions, has raised another $15 million in Series AA recap funding. The company originally closed the deal in March 2003 with $30 million at a post-money valuation of approximately $31.7 million. It then reopened the deal a few months later, and secured an additional $20.1 million. The latest tranche brings the round total to $65.4 million, and was led by Meritech Capital Partners. Return backer Oak Investment Partners also participated. www.visto.com
A lawsuit has been filed against former executives of BuildNet Inc., a Durham, N.C.-based dotcom company that went bankrupt in 2001. The complaint alleges breach of fiduciary responsibility, and was brought by shareholders of a company named UniLink Group, which BuildNet acquired in 2000. The suit also names former BuildNet board members Norvell Miller, managing general partner of Southeast Interactive Technology Funds, and Jack Kemp, former NFL quarterback, VP candidate and HUD Secretary. Newspaper reports say that attorneys for the accused will ask a judge to dismiss the charges this coming Tuesday.
| VC Deals |
AngioGenex Inc., a New York-based biotech startup focused on the treatment of cancer, has raised $875,000 in convertible bridge note and warrant financing led by Atypical BioVentures Fund, a new VC vehicle formed by Aurora Capital. www.angiogenex.com
| Buyout News |
Apax Partners has completed its acquisition of the wound care management business of SSL International PLC for £55 million (approx. $98.4 million). The spun-out company has been named Medlock Medical Ltd., and will focus on key therapy areas of compression therapy, dermatology, advanced wound-care, antiseptics and orthopedics. www.apax.com
Reuters is reporting that KKR and CSFB Private Equity submitted the high bid for Dynamit Nobel, the chemicals business of MG Technologies. The article reports that the joint bid topped lower offers from CVC and Goldman Sachs Capital Partners, and from Bain Capital and Permira. MG is thought to be looking for around €2.5 billion in the sale.
| M&A News |
Integrated Device Technology Inc. (Nasdaq: IDTI) has agreed to acquire ZettaCom Inc., a Santa Clara, Calif.-based provider of optical networking solutions. Dow Jones is reporting that the deal is worth $35 million, although neither company is releasing financial details. ZettaCom had raised over $75 million of VC funding since its 1999 inception, from investors like Venrock Associates, Norwest Venture Partners, JPMorgan Partners, Infineon Ventures, Granite Global Ventures, Crimson Ventures, J&W Seligman & Co., Banc of America Securities, Vertex Management, K1 Ventures, U.S. Bancorp Piper Jaffray and China Development Industrial Bank. www.zettacom.com
| IPO News |
Immunicon Corp., a Huntingdon Valley, Pa.-based company specializing in cell-based research and diagnostic products with an initial focus on cancer, will begin trading on the Nasdaq today under ticker symbol IMMC. The company priced six million shares of common stock at $8 per share, for a total IPO take of $48 million. The company had originally hoped to price at between $12-$14 per share, but on Wednesday lowered its expectations to $9-$11 per share. The $8 price was decided on yesterday. Immunicon has raised over $86 million in venture funding from investors like Canaan Partners, Johnson & Johnson Development Corp., TL Ventures, MDS Life Sciences, LHC Corp. Wheatley Partners, Anthem Capital, Burrill & Co. and Foundation Medical Partners. www.immunicon.com
WPT Enterprises Inc. and Multi-Fineline Electronix Inc. filed for $32.2 million and $70 million IPOs, respectively. Neither company has received significant private equity backing.
| Human Resources |
Fred Destin has joined Atlas Venture as a London-based principal focused on information technology investments. He is a former partner of Dresdner Kleinwort Wasserstein’s OM technology investments group, and previously served as a venture manager with seed-stage investor Speed Ventures. www.atlasventure.com
Robert Knox has been selected vice chair of the board of directors at Boston University. He received both his Bachelor’s and MBA from the school, and currently serves as senior managing director and co-founder of Cornerstone Equity Investors.
Sarah Shackelton has joined Abingworth Management, where she will head up recruitment efforts for the London-based VC firm’s portfolio of life sciences companies. She had previously held similar positions with Coulter Partners and Spencer Stuart.
Rudy Scarpa has joined Coller Capital as a partner in the London-based firm’s New York office. He previously served as a principal with TH Lee Putnam Ventures, and once led fund-raising efforts for Merrill Lynch’s private equity group.
Six Flags Inc. (NYSE: PKS) has completed its previously announced sale of Six Flags World Adventure in Ohio and its European Division. Cedar Fair LP bought the Ohio park for approximately $145 million, and UK-based private equity firm Palamon Capital Partners grabbed the European assets for around $200 million. www.sixflags.com
Omneon Video Networks Inc., a Sunnyvale, Calif.-based provider of networking and storage infrastructure for program producers and distributors, has raised $10.5 million in new VC funding. INVESCO Private Capital led the deal, and was joined by fellow new investor Centre Partners and return backers Accel Partners, Advanced Technology Ventures, Intel Capital, Lucent Venture Partners, Meritech Capital Partners and Norwest Venture Partners. The company has raised over $80 million in total VC funding since its 1998 inception, including a $12.5 million infusion in 2000 at a post-money valuation of approximately $133 million, and a $12.5 million recap deal in 2002 at a post-money valuation of approximately $16.2 million. www.omneon.com
Silicon Graphics Inc. (NYSE: SGI) has agreed to sell Toronto-based 3D graphics subsidiary Alias Systems for $57.5 million to Accel-KKR. The deal is expected to close within the quarter. www.alias.com
Emic Networks, a San Jose, Calif.-based provider of grid computing solutions, has raised $7.5 million in second-round funding. Trident Capital and Nordic Venture Partners co-led the round, and were joined by return backer Ledstiernan. www.emicnetworks.com
Columbitech AB, a Sweden-based wireless software developer, has received a $1.5 million investment from Japanese VC firm Mobile Internet Capital Inc. www.columbitech.com
Cedar Point Communications Inc., a Derry, N.H.-based provider of packet-based voice and multimedia switching solutions for the cable telecom market, has raised $20 million in new VC funding. JPMorgan Partners led the deal, and was joined by return backers Ascent Venture Partners, Battery Ventures, Charles River Ventures, Comcast Interactive Capital and STAR Ventures. www.cedarpointcom.com
Axya Medical Inc., a Beverly, Mass.-based medical device company, has raised $2.8 million in new VC funding. Crossbow Ventures led the deal, and was joined by Piper Jaffray Ventures, ProgressNow!, Tyco Ventures, Baloise Private Equity, Prism Venture Partners and Mosaix Ventures. The company now has raised around $40 million in total VC funding since its 1998 inception. www.axya.com
Aspex Semiconductor, a Bradford, UK-based fables semiconductor company, has raised $10 million in second-round funding. Return backer New Media Spark participated on the deal. The company also changed its name over from Aspex Technology. www.aspex.co.uk
The European Union Commission has approved the $100 million acquisition of Smart Modular Technologies Inc., a subsidiary of Solectron Corp. (NYSE: SLR), by Francisco Partners and Texas Pacific Group.
The European Union Commission has approved a $56 million acquisition of FLS Aerospace from FLS Industries AS by 3i Group. www.3i.com
Los Echos is reporting that French defense company Thales has sold its Thales Acoustics group to private equity firm J.F. Lehman & Co. for an undisclosed amount.
YDI Wireless Inc. (OTC BB: TDIW) has agreed to acquire Terabeam Corp., a Redmond, Wash.-based provider of broadband wireless systems, in a stock deal valued at approximately $64 million. Terabeam investors included Bessemer Venture Partners, Madrona Venture Group, Merrill Lynch Capital Partners, Mobius Venture Capital, Morgan Stanley Private Equity, Oak Hill Capital Management and T. Rowe Price. www.terabeam.com
Nanotechnologies Inc. of Austin, Texas and Technanogy Materials Development of Santa Ana, Calif. have agreed to merge. Nanotechnologies Inc. has raised over $10 million in VC funding from Castletop Capital, Convergent Investors and Harris & Harris Group. www.nanoscale.com
Alliance Laundry Holdings Inc., a Ripon, Wis.-based provider of commercial laundry equipment, has filed to raise $375 million via an IPO on the AMEX under an undetermined ticker symbol. The company was acquired in 1998 by Bain Capital and Bruckmann, Rosser, Sherrill & Co both of which are listed as significant shareholders on the IPO registration filing. www.comlaundry.com
Corcept Therapeutics Inc., a Menlo Park, Calif.-based drug company focused on the treatment of severe psychiatric and neurological diseases, has begun trading on the Nasdaq under ticker symbol CORT. The company yesterday priced 4.5 million shares of common stock at $12 per share (below its original $15-$17 offering range), for a total IPO take of $54 million. The company has raised over $30 million in VC funding since its 1998 inception from investors like Alta Partners, Sutter Hill Ventures and Maverick Capital. www.corcept.com
Collegiate Funding Services Inc., a Fredericksburg, Va.-based education finance company, has filed to raise $172.5 million via an IPO of common stock. Significant shareholders include The Lightyear Fund and TCW/Crescent Mezzanine Partners. www.cfsloans.com
Immunicon Corp., a Huntingdon Valley, Pa.-based company specializing in cell-based research and diagnostic products with an initial focus on cancer, decreased its IPO offering price range from $12-$14 per share to $9-$11 per share. The company has raised over $86 million in venture funding from investors like Canaan Partners, Johnson & Johnson Development Corp., TL Ventures, MDS Life Sciences, LHC Corp. Wheatley Partners, Anthem Capital, Burrill & Co. and Foundation Medical Partners. www.immunicon.com
David Panton has joined Mellon Ventures as a vice president in the firm’s Atlanta office, which concentrates on growth and buyout financings. He has spent the past years as co-founder and managing director of the Caribbean Investment Fund. www.mellonventures.com
Barrie Keiser has joined DW Healthcare Partners as a managing director. He most recently served as president of MEDIQ, and also has held senior management roles with OrthroRX and Promedix. www.dwhp.com
Everett Cox has decided to retire from the board of directors at Fargo Electronics Inc. (Nasdaq: FRGO). Cox has been a director since 1998, and once served as a general partner with original Fargo investor St. Paul Venture Capital. www.fargo.com
3i Group has promoted Gustav Bard to the position of managing director of 3i Nordic. He had previously run 3i Sweden, following 3i’s acquisition of VC firm Atle, where Bard served as managing director of buyouts. In related news, former 3i Nordic managing director Alan MacKay will transition to a new role as a managing director in 3i’s European buyout business. www.3i.com
Irving Bailey, managing director of Chrysalis Ventures, has been named to the board of Hospira Inc., a drug delivery company being spun off from Abbott Labs.
NEWS FROM WEDNESDAY 4/14
Domino’s Pizza Inc., an Ann Arbor, Mich.-based pizza delivery company, has filed to raise $300 million via an IPO of common stock on the NYSE under proposed ticker symbol DPZ. The company’s largest shareholder is Bain Capital, which bought a controlling stake in 1998 from Domino’s co-founder Tom Monaghan. www.dominos.com
Chuck Flynn has joined Bregal Investments LP as head of its €750 million private equity fund-of-funds practice. He comes to Bregal from Deutsche Asset Management, where he was global head of the private equity funds group. www.bregal.com
Affymax Inc., a Palo Alto, Calif.-based drug discovery company focused on novel peptide drugs for the treatment of cancer, has raised $20 million in new Series C funding. The round total is now $40 million, after a $20 million initial close in May 2003. Bear Stearns Health Innoventures led the latest tranche, and was joined by return backers Apax Partners, MPM Capital and Sprout Group. www.affymax.com
Senforce Technologies Inc., an Orem, Utah-based provider of location-aware endpoint security solutions, has raised $12.4 million in new VC funding. Thomson Weisel Venture Partners and vSpring Capital co-led the round, and were joined by fellow new investor American River Ventures, and return backers Rocket Ventures and EsNet Group. www.senforce.com
PalTalk, a New York-based provider of live video and voice communications over the Internet, has raised $6 million in new VC funding from Softbank Capital Partners. Mike Perlis, a managing partner with Softbank Capital, will join the PalTalk board of directors in conjunction with the financing. www.paltalk.com
Inotek Pharmaceuticals Corp., a Beverley, Mass.-based drug company whose products are based on a technology platform that targets cellular necrosis and tissue inflamation, has raised $20 million in Series A funding. Investors included Care Capital, Rho Ventures and MedImmune Ventures.
Molecular Imprints Inc., an Austin, Texas-based maker of step and flash imprint lithography equipment, announced that it has received additional Series B funding from Lux Capital and Harris & Harris Group. The firm had previously disclosed Series B investors Alloy Ventures, Draper Fisher Jurvetson, Motorola and KLA-Tencor.
Web Reservations International Ltd., a Dublin, Ireland-based provider of online booking and reservations technology for the budget, independent and youth travel sector, has received an undisclosed amount of private equity funding from Summit Partners. www.webresint.com
Todd Jaquez-Fissori has joined Siemens Venture Capital as an investment partner in the firm’s Silicon Valley Office. He most recently served as a principal with Boulder Ventures in San Francisco.
Jeffrey Miller, a venture partner with Redpoint Ventures, has been named chairman of the board at Redpoint portfolio company Movaris, a Campbell, Calif.-based provider of corporate compliance management software. www.movaris.com
GSI Technology Inc., a Santa Clara, Calif.-based provider of SRAM circuits for the networking and telecom markets, has filed to raise $103.5 million via an IPO of common stock on the Nasdaq under proposed ticker symbol GSIT. Significant shareholders include Monet Capital. www.gsitechnology.com
CoinMach Service Corp., a Plainville, N.Y.-based provider of outsourced laundry services to multi-family housing properties, has filed to raise $400 million via an IPO. The company had originally gone public in 1996 on the Nasdaq, but later returned to the private markets following a merger with CLC Acquisition Corp., which was formed by GTCR-Golder-Rauner. The company also lists TCW Crescent Mezzanine Partners as a significant shareholder. www.coinmach.com
Findexa AS, a Norway-based telephone directory publisher, plans to raise around €420 million via an IPO on the Oslo stock market later this year. The company was bought out from Telenor SA by Texas Pacific Group in 2001. www.findexa.no
Austriamicrosystems AG, an Austria-based provider of analog and mixed-signal process technologies, reportedly plans to raise €85 million via an IPO on the Swiss Stock Exchange later this year. The company was delisted from the Vienna exchange in 2000, after being acquired for €270 million by private equity firm Permira. www.austriamicrosystems.com
Friend Skoler & Co., a Saddle Brook, N.J.-based private equity firm, has closed its latest fund with $231 million in capital commitments. The firm will continue its strategy of acquiring and building companies on the smaller end of the middle-market, in partnership with company management. www.friendskoler.com
The Gulf Venture Capital Society, a non-profit group for VC and private equity pros in the Middle East, held its founding meeting last week in Bahrain with over 100 participants.
NEWS FROM TUESDAY 4/13
KKR BDC, a newly formed investment company sponsored by private equity firm Kohlberg Kravis Roberts & Co., has filed to raise $750 million via an IPO of common stock. The company primarily will provide financing to companies that are privately-owned, and investments will consist of secured and unsecured senior and subordinated loans and other debt securities. It also will invest equity and equity-linked securities such as common and preferred stock, convertible securities, warrants and options. Finally, KKR BDC may invest up to 30% of its portfolio in “opportunistic investments” like high-yield bonds, distressed debt or equity in public companies. It will not invest in any company in which KKR or any of its affiliates have an existing investment. www.kkr.com
Vinod Khosla is resigning from the board of Juniper Networks Inc. (Nasdaq: JNPR), effective this Thursday. Khosla helped found Juniper in 1996, but is leaving to make room for a representative of Netscreen Technologies Inc., which Juniper recently agreed to acquire for $3.6 billion. Kohsla is a general partner with Kleiner, Perkins, Caufield & Byers, although he will soon shift to a part-time “partner” position for the Silicon Valley venture firm’s new fund.
Cardiokine Inc., a Philadelphia-based drug company focused on the treatment of heart failure and other cardiovascular indications, has raised $37 million in Series A funding. Perseus-Soros Biopharmaceutical Fund and HealthCare Ventures co-led the deal, and were joined by Care Capital and Burrill & Co. In conjunction with the financing, Andrew Schiff and Magdalene Cook of Perseus-Soros, Eric Aguiar of HealthCare Ventures and Jan Leschly of Care Capital have joined the Cardiokine board of directors. www.cardiokine.com
Corus Pharma Inc., a Seatle-based biotech and specialty drug company focused on respiratory and infectious diseases, has raised $60 million in Series C funding. Bear Stearns Health Innoventures led the round, and was joined by fellow new investors Hambrecht & Quist Capital Management, AIG Sun America Ventures, MPM BioEquities, Carnegie Group and company chairman Kirby Kramer. Return backers included JPMorgan Partners, MDS Capital, Novo A/S, RBC Capital, Burrill & Co., OrbiMed Advisors, Cascade Investment, Anthem Ventures, Pacific Rim Ventures, Washington Research Foundation, Integra Ventures and WestRiver Capital. Montgomery & Co. LLS served as Corus’ exclusive placement agent on the transaction. Corus now has raised $108.5 million in total VC funding since its 2001 inception, including a $40 million Series B deal in early 2003 at a post-money valuation of approximately $67 million. www.coruspharma.com
OutlookSoft Corp., a Stamford, Conn.-based provider of business planning and performance management solutions, has raised $22.5 million in Series D funding. Battery Ventures and Greylock co-led the deal, and were joined by return backers Pequot Ventures and GE Commercial Finance. In conjunction with the funding, Ollie Curme of Battery and Bill Hellman of Greylock will join the OutlookSoft board of directors. www.outlooksoft.com
Ping Identity Corp., a Denver-based provider of federated identity management solutions, has closed its first round of VC funding with $5.8 million at a post-money valuation of approximately $10.1 million. The company had announced the initial $5 million closing last October led by General Catalyst Partners, and now has added Fidelity Ventures to its investor roster. Dave Power, a partner with Fidelity Ventures, will join the Ping Identity board of directors. www.pingidentity.com
Website Pros Inc., a Jacksonville, Fla.-based provider of Web site solutions for small businesses, has raised $7 million in new Series A recap funding from Insight Venture Partners and Norwest Venture Partners. This brings the round total to $17 million, as Website Pros raised the initial $10 million this past December from Insight. The company now has raised around $105 million in total VC funding since its 1997 inception. www.websitepros.com
Lancope Inc., an Alpharetta, Ga.-based provider of network integrity solutions, has raised $12.5 million in Series C funding. Canaan Partners led the deal, and was joined by return backers Council Ventures, GMG Capital Partners and H.I.G. Ventures. The company now has raised over $24 million in total VC funding since its 2000 inception. www.lancope.com
Basis Technology Corp., a Cambridge, Mass.-based provider of multilingual text mining software, has received a strategic investment from In-Q-Tel, the non-profit VC group funded by the CIA. www.basistech.com
Lambda OpticalSystems Corp., a Reston, Va.-based provider of optical network solutions, has raised $14 million in Series B funding from return backers ComVentures and Sevin Rosen Funds.
GreenFuel Technologies Corp., a Cambridge, Mass.-based developer of air pollution control technologies, has received a startup investment from Access Industries Inc. www.greenfuelonline.com
Trinity Ventures has agreed to acquire and take private SciQuest Inc. (Nasdaq: SQST), a Research Triangle Park, N.C.-based provider of research process services to the life sciences and higher education markets. The transaction is valued at $25.25 million in cash. www.sciquest.com
Meridian Venture Partners has led the buyout of ANI Pharmaceuticals Inc., a Gulfport, Miss.-based manufacturer of over-the-counter liquid pharmaceuticals, from Advanced Nutraceuticals Inc. (OTC BB: ANII). Meridian was joined on the deal by Liberty Venture Partners and incoming members of management, which include Tom Anderson, former president of the domestic pharmaceutical division of Alpharma Inc.
Austin Ventures has committed $50 million to launch a new acquisition platform in the information services sector. The private equity firm has teamed on its new effort with Brian Sharples, former president and CEO of IntelliQuest Information Group and onetime Bain & Co. consultant. Sharples will be based in Austin, Texas, but evaluate potential acquisition and startup opportunities throughout the United States. www.austinventures.com
Charterhouse Group has partnered with a pair of healthcare industry managers to form Upstream Rehabilitation Inc., an acquisition platform focused on the outpatient rehabilitation services industry. The group already has made its first investment: a recapitalization of Carlsbad, Calif.-based Physical Rehabilitation Network, an owner and operator of outpatient rehab clinics in California. Upstream was joined on the deal by The Athena Group, a Chicago-based healthcare investment firm. No financial terms of the PRN deal were disclosed. www.upstreamrehabilitation.com
Gazeta Mercantil is reporting that Darby Overseas has agreed to acquire a 34% stake in Brazilian fuel distributor Satélite Distribuidora de Petróleo. Darby also reportedly plans to invest $10 million into the company over the next three years. Additional financial details were not disclosed. www.darbyoverseas.com
Hynix Semiconductor Inc., a South Korea-based memory chipmaker, has ended talks with Citigroup Venture Capital related to a proposed sale of non-core Hynix units that make camera phone chips and flat screens.
Warburg Pincus has completed its acquisition of all outstanding shares of ScanSoft Inc. (Nasdaq: SSFT) previously held by Xerox Corp. (NYSE: XRX) for approximately $80 million. The deal includes 11,853,602 shares of common stock, 3,562,238 shares of non-voting Series B preferred stock and a warrant to purchase up to 525,732 shares of common stock. In addition, Warburg Pincus has acquired a warrant to purchase 2.5 million shares of common stock from ScanSoft. William Janeway, a vice chairman with Warburg Pincus, has joined the ScanSoft board of directors.
Mercury Computer Solutions Inc. (Nasdaq: MRCY) has agreed to acquire TSG Group, a Bordeaux, France-based supplier of 3-D image processing and visualization software. The deal is valued at approximately $18.5 million, which includes $6 million worth of Mercury common stock and the remainder in cash, subject to closing adjustments. www.tgs.com
Financial Pacific Co., a Federal Way, Wash.-based commercial finance company, has filed to raise $80.5 million via an IPO of common stock on the Nasdaq under ticker symbol FNPC. In January 1998, affiliates of private equity firm Windward Capital Partners acquired a majority interest in Financial Pacific. www.finpac.com
Color Kinetics Inc., a Boston-based developer of solid-state illumination technologies, has filed to raise $51.75 million via an IPO of common stock on the Nasdaq under proposed ticker symbol CLRK. The company has raised over $47 million in total VC funding since its 1997 inception, including a $13 million Series D round earlier this year. Investors have included Needham Capital Partners, Armen Capital Management, ThinkEquity Investment Partners, SAC Capital Advisors and Deutsche Bank. www.colorkinetics.com
Threshold Pharmaceuticals Inc., a South San Francisco-based biotech company focused on small molecule therapeutics, has filed to raise $86.25 million via an IPO of common stock on the Nasdaq under proposed ticker symbol THLD. The company has raised $50 million in VC funding since its 2001 inception, including a $41 million Series B infusion late last year at a post-money valuation of approximately $68 million. Significant shareholders include Morgenthaler Partners, Pequot Capital Management, ProQuest Investments, Sofinnova Ventures, Three Arch Partners and Sutter Hill Ventures. www.thresholdpharm.com
Greenfield Online Inc., a Wilton, Conn.-based provider of online survey solutions to the global marketing industry, has filed to raise $75 million via an IPO of common stock on the Nasdaq under proposed ticker symbol SRVY. Significant company shareholders include Insight Venture Partners, UBS Capital and MSD Ventures. The company had originally filed for an $86.25 million IPO in March 2000, but withdrew the offering in December 2000 due to adverse market conditions. www.greenfield.com
Kevin Mundt has joined Vestar Capital Partners as a managing director with the Vestar Resources portfolio monitoring and advisory group. He most recently served as vice president and director of Mercer Oliver Wyman (f.k.a. Mercer Management Consulting). He also was co-founder and director of strategic consultancy Corporate Decisions Inc., which merged with Mercer in 1997.
Gary Silverman has joined Kaye Scholer LLP as a partner and head of the law firm’s private equity practice in Chicago. He most recently served as a partner with Kirkland & Ellis LLP. www.kayescholer.com
David Parshall, managing director of secondaries firm Private Equity Investors Inc., has been named chairman of the board’s audit committee at Friedman’s Inc. (NYSE: FRM), where he currently serves as an independent director. He replaces Mark Pickup, who died unexpectedly last week. www.friedmans.com
The Yale School of Management announced that Dean Jeffrey Garten will step down in June 2005, after completing his second five-year term. Among Garten’s accomplishments was the creation of the Sachem Venture Capital Fund, which supported projects in the New Haven, Conn. area.
JANA Partners has told will nominate an opposition slate of four directors during InterCept Inc.‘s (Nasdaq: ICPT) upcoming shareholder meeting. Among the nominees are Kevin Lynch and Marc Weisman, both principals with private equity firm Sagaponack Partners. JANA owns approximately 8% of InterCept’s outstanding common stock.
Greyrock Capital Group has closed its new fund with $190 million in commitments, inclusive of SBIC funds. The firm – which features offices in San Francisco, Chicago and New York – provides mezzanine and equity financing for buyouts, recaps and internal growth needs of middle-market companies. www.greyrockcapitalgroup.com
Schroders PLC has closed its second private equity fund-of-funds with €285 million. The new vehicle already has made approximately €95 million in commitments to eight private equity partnerships, and is listed on the Irish Stock Exchange. Over €160 million in LP commitments came from investors on the firm’s initial €242 million fund-of-funds, which closed in 2002. www.schroders.com
The Indiana Future Fund I, a $73 million fund-of-funds designed by BioCrossroads to attract more VC to Indiana-based life sciences companies, recently invested in new funds from: A.M. Pappas & Co., Burrill & Co., REI (joint fund from Rose-Hulman Ventures and EDF Ventures) and Pearl Street Venture Funds (joint venture from Coastview Capital and Barnard Associates).
NEWS FROM MONDAY 4/12
Cortina Systems Inc., a Mountain View, Calif.-based provider of analog and digital integrated circuits, has raised $20 million in new Series B funding. The company originally closed its Series B funding round in February 2003 with $22 million at a post-money valuation of approximately $71 million, but reopened it earlier this year. Kodiak Venture Partners and Hotung Capital Management led the new tranche, and were joined by return backers Morgenthaler Ventures, Redpoint Ventures, El Dorado Ventures and INVESCO Private Capital. www.cortina-systems.com
W Capital Partners, a New York-based private equity firm focused on the secondaries market, has closed on $172 million for its latest fund. A final close is expected soon. PE Week subscribers can read more on this exclusive story in today’s print edition, or online in the protected Weekly Headlines section of www.pewnews.com.
Parthenon Capital has expressed interest in acquiring a controlling interest in NYMEX Holdings Inc., the parent company of the New York Mercantile Exchange. The proposed transaction would involve Parthenon purchasing 60% of NYMEX equity shares for an implied valuation of up to $2 million per seat. NYMEX said in a press release that it is evaluating Parthenon’s offer. www.nymex.com
Centrata Inc., a Redwood City, Calif.-based provider of IT service delivery solutions to the Fortune 500, has raised $10 million in Series C funding. Clearstone Venture Partners led the deal, and was joined by fellow new investor Duff Ackerman and return backers Invesco, Dot.edu and Kleiner Perkins Caufield & Byers. www.centrata.com
Trusted Network Technologies Inc., an Atlanta-based provider of identity-based firewalls for internal networks, has raised $12 million in second-round funding. JK&B Capital led the deal, and was joined by return backers Charles River Ventures and Flagship Ventures. The company now has raised $18 million in total VC funding since its 2002 inception. www.trustednetworktech.com
Cepstral LLC, a Pittsburgh-based provider of synthetic voice technologies, has raised $1.4 million in new VC funding from a group of local angel investors and Innovation Works.
Cetek Corp., a Malborough, Mass.-based drug discovery company, has raised $16 million in new private equity funding. Investors include Argonaut Private Equity and Gainsborough Investments. The company has raised over $50 million in VC funding since its 1996 inception. www.cetek.com
Adesso Systems Inc., a Waltham, Mass.-based provider of enterprise mobile applications solutions, has raised $8 million in new VC funding led by Carlyle Venture Partners.
Chantry Networks Inc., a Waltham, Mass.-based provider of routed wireless networking technologies, has raised $11 million in Series B funding. Ventures West led the deal, and was joined by Flagship Ventures, Primaxis Technology Ventures and Venture Coaches/Skypoint Capital. The company launched the deal last spring with a target of between $12 million and $15 million. www.chantrynetworks.com
MyDTV Inc., a Burlingame, Calif.-based provider of television search engine solutions, has raised $7 million in new VC funding. WaldenVC led the deal, and was joined by return backers Rothschild Ventures and Defta Partners. MyDTV was founded in January 2000. www.mydtv.net
StorCard Inc., a San Jose, Calif.-based, has raised $8 million in Series C funding. New Enterprise Associates led the deal with a $7 million commitment, and was joined by Rembrandt Investment Partners. www.storcard.com
Caymas Systems Inc., a Petaluma, Calif.-based provider of identity-based secure access applications, has raised $12 million in second-round funding. New investor ComVentures was joined on the deal by return backer Redpoint Ventures. www.caymas.com
NarrowCast Group LLC, a Louisville, Ky.-based publisher of IT Business Edge reports, has raised $850,000 in first-round funding from a local VC group and angel investors. www.itbusinessedge.com
Modulus Video Inc., a Sunnyvale, Calif.-based developer of encoders and decoders for the new video compression standard, has raised $8.5 million in Series A funding. Trinity Ventures led the deal, and Trinity’s Gus Tai (general partners) and Alex Osadzinski (venture partner) will join the Modulus Video board of directors. The company also named Robert Wilson as CEO and chairman. He has served in management positions at Pinnacle Systems Inc., Accom Inc. and Grass Valley Group.
Clayton, Dubilier & Rice Inc. has completed its purchase of VWR International from Merck KGaA for $1.65 billion. VWR is a West Chester, Pa.-based distributor of scientific supplies, and has 5.880 worldwide employees and 2003 revenue of approximately $2.8 billion. www.vwr.com
Apax Partners and Spectrum Equity Investors have agreed to acquire a majority equity interest in NEP Broadcasting LLC, a Pittsburgh-based provider of outsourced media services. The selling party is Wachovia Capital Partners, which first invested in NEP back in October 2000. No financial terms of the acquisition were disclosed. www.nepinc.com
The Riverside Co. has acquired a controlling interest in ATI Enterprises Inc. and its sister company ATI Enterprises of Florida Inc., alongside company management. The companies – known together as ATI – operate post-secondary for-profit vocational schools at campuses in Texas, Florida and Arizona. Riverside and ATI management were joined on the deal by fellow equity sponsors Primus Venture Partners and Ground Swell Equity Partners. LaSalle Bank, Madison Capital Funding and David L. Babson & Co. provided debt funding. www.aticareertraining.com
North Castle Partners has acquired a controlling interest in HDS Cosmetics Lab Inc., a Yonkers, N.Y.-based provider of “DDF” brand skin care products. Easton Hunt Capital Partners and Easton Hunt New York (a joint fund with the New York State Common Retirement Fund as sole limited partners) also will invest in the deal, of which financial terms were not disclosed. www.ddfskincare.com
Gryphon Investors has acquired Autotronic Controls Corp. (a.k.a. MSD Ignition), an El Paso, Texas-based aftermarket performance ignition manufacturer. Financial terms of the transaction were not disclosed. www.msdignition.com
Wellspring Capital Management has agreed to sell its interest in The Hockey Coompany Holdings Inc. (TSX: HCY) to Reebok International Ltd. (NYSE: RBK). The deal is worth just over Cdn$70 million (approx. US$52.74 million) in cash, as Reebok will pay Cdn$21.25 for each of Wellspring’s 3.3 million outstanding shares. Wellspring currently is largest shareholder in The Hockey Company, a Montreal-based provider of ice hockey equipment and apparel, and owner of the CCM brand. www.ccmsports.com
Advent International and Conning Capital Partners have acquired Long Term Care Group Inc., an El Segundo, Calif..-based provider of outsourced services to the long-term care insurance industry. The transaction is valued at $130 million, including $75 million in equity financing ($46 million from Advent, $23 million from Conning and $6 million from company management). Merrill Lynch Capital led the senior debt financing, while Northwestern Mutual provided subordinated debt. www.ltcg.com
Parthenon Capital has expressed interest in acquiring a controlling interest in NYMEX Holdings Inc., the parent company of the New York Mercantile Exchange. The proposed transaction would involve Parthenon purchasing 60% of NYMEX equity shares for an implied valuation of up to $2 million per seat. NYMEX said in a press release that it is evaluating Parthenon’s offer. www.nymex.com
Inflazyme Pharmaceuticals Ltd. (TSX: IZP) has agreed to acquire Adprotech Ltd., a UK-based biotech company focused on protein engineering. The all-stock deal is valued at approximately Cdn$20 million (approx. US$15 million), according to the average price of Inflazyme shares over the past 15 business days. Adprotech has raised around $35 million in total VC funding since its 1997 inception, from investors like 3i Group, Alice Ventures, Alta Berkeley Venture Partners and Prelude Ventures. www.inflazyme.com
Thomson Corp. (NYSE: TOC) has agreed to acquire TradeWeb LLC, a Jersey City, N.J.-based operator of an online global trading platform for fixed-income securities. The deal is valued at $385 million in cash, plus performance-contingent payments of up to approximately $150 million over the next three years. TradeWeb has received private equity funding from eight investment banks. (Note: The PE Week Wire is published by Thomson Corp. subsidiary Thomson Financial). www.tradeweb.com
Xcel Pharmaceuticals Inc., a San Diego-based drug company focused on the central nervous system, has withdrawn registration papers for its $75 million IPO. This is the second pulled offering for Xcel, which had first filed to go public in January 2002 before withdrawing one year later. The company’s latest S-1 was filed last August, and once again is being pulled to due “current market conditions.” The company has raised over $118 million in total VC funding from investors, including a $26 million Series C injection in 2003 at a post-money valuation of approximately $165 million. That deal also involved $62 million in senior debt restructuring, and included investors like Ferrer Freeman & Co., New Enterprise Associates and Domain Associates. www.xcelpharmaceuticals.com
StoneMor Partners LP, a Bristol, Pa.-based owner and operator of cemeteries in the United States, has filed to raise over $97.97 million via an IPO on the Nasdaq under proposed ticker symbol STON. The company was previously known as Cornerstone Family Services Inc., and was founded in 1999 by company management and private equity firm McCown De Leeuw & Co., when they acquired 123 cemetary properties and four funeral homes. Since then, it has acquired 10 additional cemeteries and one funeral home, built two funeral homes and sold one cemetery. www.cornerstonefs.com
Icagen Inc., a Durham, N.C.-based biopharmaceutical company focused on orally-administered small molecule drugs, has filed to raise $86.25 million via an IPO of common stock on the Nasdaq under proposed ticker symbol ICGN. The company has raised over $70 million in total VC funding since its 1992 inception, with significant shareholders including Alta Partners, Venrock Associates, Abbot Laboratories, JPMorgan Partners, HBM BioVentures, Medical Science Partners, QFinance and China Development Industrial Bank. www.icagen.com
Claria Corp., a Redwood City, Calif.-based provider of direct online marketing solutions like Gator, has filed to raise $150 million via an IPO of common stock on the Nasdaq under proposed ticker symbol CLRA. The company has raised over $58 million in VC funding from firms like U.S. Venture Partners. www.claria.com
Bucyrus International Inc., a South Milwaukee, Wis.-based provider of excavation equipment for surface mining, has filed to raise $155.25 million via an IPO on the Nasdaq under an undetermined ticker symbol. The company is majority owned by a subsidiary of buyout shop American Industrial Partners. www.bucyrus.com
Valor Communications Group Inc., an Irving, Texas-based provider of telecom services, has filed to raise $875 million via an IPO. The company was formed in 2000 after the acquisition of select telephone assets from GTW Southwest Corp., which now is part of Verizon. Equity sponsors on the deal – and current significant shareholders in Valor – were Welsh, Carson, Anderson & Stowe, Citicorp Venture Capital and Vestar Capital Partners. www.valortelecom.com
Farville Inc., a San Diego-based drug company focused on immunotherapies for cancer and other immune system diseases, has filed to raise $86.25 million via an IPO of common stock on the Nasdaq. Significant shareholders include Alloy Corp., De Novo Ventures, Forward Ventures, Sanderling Venture Partners and William Blair Capital Partners.
UAP Holding Corp., a Greesley, Colo.-based distributor of agricultural and non-crop products in the U.S. and Canada, has filed to raise $625 million via an IPO on the Nasdaq under an undetermined ticker symbol. Apollo Management acquired the company from ConAgra Foods Inc. (NYSE: CAG) last November for around $550 million in cash and another $60 million in preferred securities.
ViaCell Inc., a Boston-based biotech company focused on cellular therapies for cancer, infertility and certain genetic and cardiac diseases, has filed to raise $92 million via an IPO of common stock on the Nasdaq under proposed ticker symbol VIAC. The company originally filed for a $115 million IPO in January 2002, but pulled the offering late last year due to adverse market conditions. Since then, the company has received a $20 million strategic investment from Amgen Inc. (Nasdaq: AMGN). ViaCell has raised over $110 million in total VC funding since its 1994 inception, with significant shareholders including MPM Capital, Amgen, Tullis-Dickerson & Co., Zero Stage Capital, DWS Investment, Nomura International and TA Associates. www.viacellinc.com
Memory Pharmaceuticals Corp., a Montvale, N.J.-based drug company focused on the central nervous system, began trading on the Nasdaq last week under ticker symbol MEMY. The company priced five million shares of common stock at a reduced price of $7 per share, for a total IPO take of $35 million. Memory had raised over $70 million in VC funding from investors like Oxford BioScience Partners, Venrock Associates, Bioventures Investors, Alta Partners, OrbiMed Advisors, Global Biomedical Partners and Healthcare Ventures. www.memorypharma.com
John Beletic, a venture partner with Oak Investment Partners, has been elected to the board of directors at STSN Inc., a Salt Lake City-based provider of broadband services to the hospitality industry. www.stsn.com
Ralph Kimball has been named Secretary of Economic Development by Massachusetts Gov. Mitt Romney. Kimball is a former partner at Boston Consulting Group, and most recently headed up a private equity unit at Kissinger McLarty Associates (a firm launched by Henry Kissinger and former Clinton Chief of Staff Thomas “Mack” McLarty).
Brad Young has joined the Richmond, Va.-based team of UK-based private equity firm Altius Associates, according to PrivateEquityCentral.net. Young will serve as a managing director with Altius, after having helped spent the past four years helping to manage the private equity portfolio of MIT‘s endowment and pension fund.
The Independent of London is reporting that Luc Vandevelde is being pressured to devote more time to his job as chairman of UK retailer Marks & Spencer. Vandevelde also serves as a managing director of private equity firm Change Capital Partners, and as non-executive director at French supermarket chain Carrefour.
Riverstone Holdings and the Carlyle Group announced that they have raised $1.1 billion for their second joint buyout fund, which invests in the energy and power industries. The fund – named Carlyle/Riverstone Global Energy & Power Fund II – already has committed around half of its committed capital in companies like Legend Natural Gas, Magellan Midstream Partners and Mariner Energy Inc.
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