PE Week Wire: Thursday, June 12, 2008

Greetings from Washington DC, where last night we had a great turnout for the midway point of peHUB Across America. Lots of good conversation, tasty grub and an open bar (including Yuengling on tap, which made me nostalgic for my college days in Philly). Oh, and first-class sponsors in Dechert LLP and Grant Thornton.

We also raised over $1,700 from ticket sales, which will go to the Rockville Pregnancy Center. The prior night’s event in Chicago raised over $1,800 for the local chapter of the American Lung Association. At each event, we ask attendees to write the name of a favored charity on the back of a biz card, and then we pick one at random. We’ll be giving away over $2k tonight in New York, and more than $3k tomorrow night in Boston.

Tonight’s event remains sold out, although some waiting list folks will get emails later this morning about gaining entry. If you don’t get one I apologize, but the list is now nearly 300 people long. As for the Friday finale at Fenway, I have opened a limited number of extra tickets. You can get them by going to

It’s been a blast seeing so many readers turn out, even if I briefly forgot what airport I landed in yesterday (I remembered upon spotting a store selling only Obama and McCain paraphernalia). Got a sneaking suspicion we’ll be doing it again at some point…

Top Three

The Stanley Works (NYSE: SWK) has agreed to acquire Sonitrol Corp. from Carlyle Venture Partners, Wachovia Capital Partners, Spire Capital Partners and Sonitrol management. The deal is valued at $275 million in cash. Sonitrol is a Berwyn, Penn.-based provider of security monitoring services, access control and fire detection systems to commercial customers in North America. It had been acquired by the PE firms in 2004 from Tyco for approximately $125 million, and had already paid out a dividend.

Boston Ventures has acquired a majority stake in Petty Enterprises for an undisclosed amount. Founded and owned by former NASCAR driver Richard Petty, PE operates the Richard Petty Driving Experience and two racing teams.

Tom Connolly, head of U.S. leveraged finance for Goldman Sachs, is moving over to the firm’s private equity group. He is expected to run a new fund investing in debt. Connolly will be succeeded by Denis Coleman, co-head of loan capital markets, and Craig Packer, head of high-yield capital markets.

VC Deals

Bullhorn, a Boston-based provider of on-demand staffing and recruiting software, has raised $26 million in fourth-round funding. New backers Highland Capital Partners and General Catalyst Partners co-led the deal.

Itero Biopharmaceuticals Inc., a San Mateo, Calif.-based protein and antibody startup, has raised $21 million in Series A funding. SV Life Sciences and Panorama Capital co-led the round, and were joined by VenturEast. The company also signed a strategic partnership with Biological E.

Mpire, the Seattle-based parent company of online ad network WidgetBucks, has raised $10 million in Series B funding. Draper Fisher Jurvetson led the round, and was joined by return backer Ignition Partners.

Zoosk, a San Francisco-based social dating network, has raised $4.1 million in Series B funding. Canaan Partners and return backer ATA Ventures co-led the round.

Helios Coatings Inc., a Canton, Ohio-based provider of metallic coatings for the auto industry, has raised $4 million from Hopewell Ventures.

Greener World Media, an Oakland-based media company focused on the “green” market, has raised $1 million in Series A funding from the K Group.

Buyout Deals

Clear Channel Communications Inc. (NYSE: CCU) said that it will convene a shareholder meeting on July 24 to vote on the pending buyout by Bain Capital and THL Capital. If approved, the actual closing date is expected to be July 30.

Great Hill Partners has agreed to acquire CAM Commerce Solutions Inc. (Nasdaq: CADA), a provider of retailing and payment processing solutions for small and mid-sized businesses. The total deal has an equity value of around $180 million, with CAM stockholders to receive $40.50 per share (nearly an 8% premium over the pre-announcement share price). RBC Capital Markets is advising CAM on the deal.

American Capital Strategies has terminated its prospective $5.75 per-share buyout of graphics company Merisel Inc. (PK: MSEL), citing a material adverse change (MAC). Merisel said in an SEC filing that it has issued a press release disputing the termination’s validity, although we have not yet been able to find the actual release (it’s not currently on the company’s website).

PE Exits

The Carlyle Group has sold its remaining 42.2% position in Transics, a European provider of on-board computers and fleet management solutions for the transport and logistics sector. Carlyle had acquired the company in May 2006, and floated it in Brussels last June. The final sale netted Carlyle approximately $90 million.

Bain Capital has completed its secondary offering of four million shares of chemical maker Innophos Holdings Inc. (Nasdaq: IPHS), for $27.50 per share. The deal reduced Bain’s ownership position from 48.3% to 29.1 percent. Bain acquired Innophos in 2004 from Rhodia for $550 million, and brought it public in 2006. It had filed to sell five million shares last year, but later pulled the offering.

Generation Partners has agreed to sell digital lighting company High End Systems to Belgium-based Barco (Brussels: BAR) for approximately $55 million.

FTI Consulting Inc. (NYSE: FCN) has agreed to acquire Attenex Corp., a Seattle-based provider of document analysis and visualization software for electronic discovery. The deal is valued at approximately $88 million in cash, and is expected to close next quarter. Attenex raised $5 million from Voyager Capital in 2005.

IntelliNet Technologies has acquired the assets of Azaire Networks Inc., a Santa Clara, Calif.-based provider of I-WLAN solutions for mobile operators. No financial terms were disclosed. Azaire had raised over $40 million in VC funding from firms like Rustic Canyon Partners, Woodside Fund, Convergence Partners and Investor Growth Capital.

PE-Backed M&A

Command Information Inc., a Herndon, Va.-based provider of Internet protocol version 6 (IPv6) consulting and product development services, has acquired IT security company Idealogica. No financial terms were disclosed. Command Information has raised $36 million in VC funding from groups like Paladin Homeland Security Fund, Novak Biddle Venture Partners, Carlyle Venture Partners and Blue Water Capital.

The HealthCentral Network, an Arlington, Va.-based provider of online health and wellness information, has acquired consumer health information company MedTrackAlert LLC. No financial terms were disclosed for the deal, which more than dobules HealthCentral’s email newsletter reach. HealthCentral has raised over $80 million in VC funding from firms like IAC, Sequoia Capital, Carlyle Venture Partners and Polaris Venture Partners.

Firms & Funds

H.I.G. Capital has raised $3 billion for H.I.G. Bayside II, a distressed debt fund focused on middle-market and lower middle-market opportunities.

Industry Kapital, a European mid-market private equity firm, has changed its name to IK Investment Partners.

Human Resources

Lehman Brothers has demoted chief financial officer Erin Callan, saying that she will be “rejoining the investment banking division in a senior capacity.” Her successor will be chief administrative officer Ian Lowitt. In other Lehman shakeup news, Bart McDade, global head of equities, will replace Joseph Gregory as president and COO.

David King has joined Quaker BioVentures as a venture partner. He most recently served as founder and CEO of BioRexis Pharmaceuticals, which was acquired by Pfizer in 2007.

Greg Shaia has joined Moelis & Co. as a managing director leading coverage of the consumer and retail sector. He previously was with Bear Stearns, as head of retail and apparel investment banking.

Kevin Gillis has joined Third Rock Ventures as chief financial officer. He previously was VP of finance at Coley Pharmaceutical Group. Former Third Rock CFO Anne-Mari Paster will serve as a consultant going forward. Third Rock is a Boston-based venture firm focused on life sciences opportunities.

Canaccord Adams has named Jaime Brown president, and said that he will continue to serve as head of investment banking. He succeeds Kevin Dunn, who will assume the title of vice chairman of U.S. operations.