PE Week Wire: Monday, August 25, 2008

In June, more than 1,300 of you got tickets for peHUB Across America. At around the same time, hundreds more complained that we weren’t hosting an event in their hometown. So let’s start fixing that:

I’m pleased to announce the launch of peHUB Across America II, which will include shindigs in San Francisco, Denver and Seattle. Each evening will be a chance to hobnob, drink and munch with local VCs, buyout pros, entrepreneurs, bankers and assorted hangers-on. Plus, you get to hang with me at various stages of what promises to become a three-night bender.

Each ticket costs just $10, with the proceeds going to a local charity that will be voted on by event attendees (you can nominate a charity when you sign up). Get ‘em here:

• Denver

Tuesday, Sept. 23

The Wynkoop Bewing Co.

• San Francisco

Wednesday, Sept. 24

Pete’s Tavern (across from AT&T Park)

• Seattle

Thursday, Sept. 25

The Chapel Bar

BIG thanks to our local sponsors:

• Headwaters MB and the Rocky Mountain Venture Capital Association in Denver

• Goodwin Procter and Gunderson Dettmer in San Francisco

• Cascadia Capital in Seattle.

Can’t wait to see you there…

Top Three

ABRY Partners has agreed to acquire Q9 Networks Inc. (TSX: Q), a Canadian provider of outsourced data center infrastructure. The total deal is valued at C$361 million, with Q9 stockholders to receive C$17.05 per share. TD Securities and TD Capital Mezzanine Partner are committing leverage for the deal, although the transaction is not subject to any financing conditions.

Proteostasis Therapeutics Inc.! , a Cambridge, Mass.-based developer of small molecule therapeutics to controlthe body’s protein homeostasis,, has raised $45 million in Series A funding. Backers include HealthCare Ventures, Fidelity Biosciences, New Enterprise Associates, Novartis Option Fund and Genzyme Ventures.

Mike Scanlin is leaving Battery Ventures, less than two years after joining the firm as a partner in its Silicon Valley office.

VC Deals

Conviva, a San Mateo, Calif.-based provider of a live media platform for online video delivery, has raised $20 million in Series B funding. UV Partners led the round, and was joined by return backers Foundation Capital and New Enterprise Associates. It had previously raised $9 million.

Schooner Information Technology Inc. has raised just over $15 million in Series A funding, according to a regulatory filing. Backers include CMEA Ventures and Redpoint Ventures. The Menlo Park, Calif.-based company says that its goal is to help financial sector and Internet consumer-facing companies achieve high performance and scalability at a fraction of their current costs.” The company is led by Richard Busch, who previously was with Sun Microsystems as research director of computer system architecture and analysis.

Quanterix Corp., a Cambridge, Mass.-based provider of single molecule analysics, has closed its Series A round at $15 million, according to VentureWire. Backers include Arch Venture Partners, Bain Capital Ventures and Flagship Ventures.

Data Robotics Inc., a Santa Clara, Calif.-based developer of automated data storage products, has raised $15 million in Series D funding, according to a regulatory filing. Return backers include Greylock, RRE Ventures and Sutter Hill Venture Partners. It had previously raised $28 million since 2005.

Nusym Technology Inc., a Los Gatos, Calif.-based EDA company whose software discovers chip flaws prior to fabrication, has raised $8.1 million in Series B funding, according to a regulatory filing. Voyager Capital led the round, and was joined by return backers Draper Richards and Woodside Fund.

Demandbase, a San Francisco-based pay-as-you-go service for buying marketing lists and sales leads, has raised $8 million in second-round funding. Sigma Partners led the round, and was joined by return backers Altos Ventures and Adobe Systems. The company had previously raised $3.3 million.

Living Proof Inc. (f.k.a. Andora), a Cambridge, Mass.-based biomaterials startup, has raised $7 million in Series A-3 funding, according to a regulatory filing. Backers include Polaris Venture Partners. The company does not have a website.

Picateers Inc., a San Mateo, Calif.-based online photo sharing and fundraising service for schools, has raised $6.6 million in Series A-2 funding, according to a regulatory filing. Backers include Norwest Venture Partners.

Luzern Solutions Ltd., a Dublin, Ireland-based provider of an ecommerce platform for managing consumer goods returned at the point-of-sale, has raised €2.5 million from Delta Partners.

Makani Power Inc., an Alameda, Calif.-based wind energy startup, has raised $5 million in Series B funding from return backer Google, according to a regulatory filing. The overall round could raise upwards of $20 million. Makani previously raised $10 million from Google in late 2006.

Forerun Inc., a Waltham, Mass.-based provider of clinical workflow solutions for emergency rooms, has raised $1.35 million in VC funding led by the Massachusetts Development Technology Corp.

Rocket Paper Scissors LLC (aka Dizzyworld), a San Francisco-based creator of entertainment websites for children, has raised $1 million in Series A-1 funding, according to a regulatory filing. European Founders Fund is the only listed shareholder, although earlier reports also have Charles River Ventures as an investor.

Space Pencil Inc., an Emeryville, Calif.-based Web analytics startup, has raised $800,000 in Series A funding, according to a regulatory filing. Backers include True Ventures and SoftTech VC. The company is run by Neil Patel and Hamit Shah, who also have been with both Advantage Consulting Services and Crazy Egg. Space Pencil does not yet have a working website.

Spring Wireless Inc., a Sao Paulo, Brazil-based provider of mobile telecom services in Latin America, has raised $56 million in Series C funding at a pre-money valuation of $110 million. peHUB had previously reported on the round, based on a regulatory filing. Backers include Goldman Sachs, New Enterprise Associates and Ideiasnet.

Buyout Deals

Advent International has acquired a 38% stake in Amscan Holdings Inc., an Elmsford, N.Y.-based maker and retailer of party goods and accessories. The shares were sold in a secondary transaction by existing Amscan backers Berkshire Partners, Weston Presidio and company management. No financial terms were disclosed, except that Amscan generated 2007 gross pro forma revenue of $1.7 billion.

Cemex (NYSE: CX) is planning to sell off Humes, an Australian maker of concrete pipes and other concrete products. The deal could be worth more than Au$400 million.

Corsair Capital has approached UK brokerage Collins Stewart PLC (LSE: CLST) about a possible buyout, according to The Sunday Times.

DOF ASA, a Norwegian shipping group, said that it is reevaluating a plan to buy out minority shareholders of subsidiary DOF Subsea, which provides offshore services. The acquisition is scheduled to be done in partnership with First Reserve Corp.

The Jordan Co. has completed its previously-announced acquisition of marine transport company Harvey Gulf International Marine Inc., for approximately $500 million. Jordan nowowns a 76% stake, while company management holds the remainder.

Warburg Pincus reportedly plans to enter the bidding for Elan Corp.’s drug delivery unit. Other potential buyers include Bain Capital and TPG Capital, while Cinven recently dropped out. Elan hopes to secure up to $1.5 billion for the unit, with Goldman Sachs and Lehman Brothers co-managing the process.

Woolworths Group PLC (LSE: WLW) may receive a new buyout approach for its retail business, from a consortium that includes Iceland-based Baugur.

PE-Backed IPOs

The O’Gara Group Inc., a Cincinnati-based provider of counterterrorism services, has filed for a $172.5 million IPO. It plans to trade on the Nasdaq under ticker symbol OGAR, with Morgan Keegan & Co. serving as lead underwriter. The Walnut Group is listed as holding a 25.77% pre-IPO position.

PE Exits

BC Partners may retain NM Rothschild to review UK real estate company Foxtons, which could be in line for a financial restructuring, according to The Financial Times.

Firms & Funds

Cathay Financial Holding of Taiwan has committed $100 million to The Blackstone Group’s sixth private equity fund, which recently held a first close of approximately $7.1 billion. The fund’s overall target is $20 billion.

CMEA Ventures is considering the launch of a $500 million fund targeting growth-stage cleantech opportunities, according to PE Week. The San Francisco-based firm recently raised $400 million for its seventh early-stage fund, which will invest about half of its capital I nthe energy and cleantech space.

Cowen Group has completed its previously-announced acquisition of Latitude Capital Group, a Hong Kong-based boutique investment bank. No financial terms were disclosed.