peHUB Wire: Monday, December 14, 2009

Top Three

Cubist Pharmaceuticals Inc. (Nasdaq: CBST) has agreed to acquire Calixa Therapeutics Inc., a San Diego-based developer of drugs that address multi-drug resistant Gram-negative pathogens. The deal includes a $92.5 up-front cash payment, plus up to $310 million in earnout payments. Calixa raised around $28 million in VC funding, from Canaan Partners, Domain Associates and Frazier Healthcare Ventures.

Apax Partners has agreed to acquire a majority stake in Israeli asset management firm Psagot from York Capital Management. No financial terms were disclosed. Psagot has nearly $32 billion in assets under management.

Terra Firma Capital Partners has sued Citigroup for alleged fraud, related to Terra Firma’s 2007 purchase of music publisher EMI Group. The private equity firm alleges that Citigroup failed to reveal that the only other EMI suitor, Cerberus Capital Management, withdrew its offer hours before the auction had closed. Terra Firma is asking for billions in damages.

VC Deals

Danotek Motion Technologies, a Canton, Mich.-based developer of generators and components to supply wind energy to the power grid, has raised $13.2 million in second-round funding. Khosla Ventures led the round, and was joined by return backers CMEA Ventures, StatoilHydro Venture and GE Energy Financial Services. The company previously announced a $14.5 million first-round, but only called $7.25 million.

Netformx, a Santa Clara, Calif.-based provider of telecom design and proposal generation platforms, has raised $12 million in new VC funding. Susquehanna Growth Equity led the round, and was joined by return backer Valley Venture Capital.

CloudShares (f.k.a. IT Structures), a Menlo Park, Calif.-based cloud computing startup, has raised $10 million in Series B funding. Backers include Sequoia Capital, Gemini Capital and Charles River Ventures.

Clarizen, a San Mateo, Calif.-based provider of online work and project management software, has raised $8 million in Series C funding. Backers include DAG Ventures, Benchmark Capital and Carmel Ventures.

On-Q-Ity, a Waltham, Mass.-based cancer diagnostics company, has raised $5 million in additional Series A funding from Atlas Venture. This brings the round total to $26 million, including past investments from Mohr Davidow Ventures, Bessemer Venture Partners, Physic Ventures and Northgate Capital. On-Q-Ity was recently formed via the merger of two VC-backed companies: The DNA Repair Company and CELLective Diagnostics.

Hetras GmbH, an Austrian developer of hotel management software, has raised an undisclosed amount offirst-round funding from Target Partners. It had previously received seed funding from a government entity.

Blue Horizon Foods, a provider of sustainable branded seafood products, has raised an undisclosed amount of growth equity funding. Greenmont Capital Partners and Renewal2 Social Investment Fund co-led the round, and were joined by Bradmer Foods. Presidio Financial Partners advised Blue Horizon on the deal.

Verari Systems, a San Diego-based provider of data center consolidation platforms, shut its doors on Friday. The company had raised over $80 million in VC funding, from firms like Celerity Partners, Carlyle Venture Partners, Sierra Ventures and Voyager Capital.

Buyouts Deals

AnaCap Financial Partners has agreed to acquire Banco Popolare Ceská Republika, the Czech subsidiary of Italy’s Banco Popolare. No financial terms were disclosed.

Bridgepoint, Cinven and Claytor Dubilier & Rice each submitted second-round bids to acquire the sales arm of British Car Auctions, which is being sold by Montagu Private Equity. The deal is expected to be worth between £350 million and £400 million.

Gulf Marine Maintenance and Offshore Service Co. (GMMOS), a UAE-based provider of marine services to the offshore oil & gas industry, has secured a $100 million term loan facility from Standard Chartered Bank, Abu Dhabi Commercial Bank, Credit Suisse and Deutsche Bank. The facility will be used torefinance existing debt and fund acquisitions. GMMOS is backed by Abraaj Capital and Waha Capital.

Hercules Technology Growth Capital has agreed to acquire Spa Chakra Inc., a global luxury spa network. No financial terms were disclosed for the deal, which would be part of a prepackaged Chapter 11 bankruptcy.

Patriarch Partners has agreed to acquire a control stake in auto parts supplier Dura Automotive Systems, by investing up to $125 million.

Reliance Communications of India is looking to sell its undersea fiber optic network and U.S. network businesses, hoping to raise around $3 billion in cash. Deutsche Bank is managing the process, with first-round bids due next month.

Standard & Poor’s raised its ratings on PE-backed Clear Channel Communications and gave it a positive outlook, indicating further upgrades could be on the cards.

Welsh, Carson, Anderson & Stowe has agreed to buy Spectrum Holding Co. from Apax Partners for $230 million. Spectrum is a Greensboro, N.C.-based provider of clinical laboratory and disease screening services.

PE-Backed IPOs

Amadeus, a global travel reservations company, has been asked by lenders to improve the terms of a loan agreement that would give the green light to an expected IPO. Amadeus shareholders include BC Partners, Cinven, Air France, Iberia and Lufthansa.

BC Partners has hired four investment banks for an IPO of German chemicals distributor Brenntag, which is expected to generate upwards of $2.2 billion. The banks are: Deutsche Bank, Goldman Sachs, J.P. Morgan and Merrill Lynch. Brenntag is expected to go public in the first half of 2010.

Concord Medical Services, a Beijing-based network of radiotherapy and diagnostic imaging centers in China, raised around $132 million via an IPO. The company priced 12 million American depository shares at $11 per share (middle of $9.50-$11.50 range), and closed its first day trading down 13.6 percent. It trades on the NYSE under ticker symbol CCM, while J.P. Morgan, Morgan Stanley and CICC served as co-lead underwriters. Company shareholders include The Carlyle Group (via Carlyle Asia Growth Partners) and Starr Investments.

PE Exits

Interpark, a South Korean online mall operator, has submitted a preliminary bid for local convenience store chain Buy The Way, which is being shopped by owner Unitas Capital. The sale is expected to be worth more than $260 million.

Sirona Dental Systems Inc. (Nasdaq: SIRO) has filed to sell 7.35 million shares via a secondary public offering. The deal could be worth around $257 million, based on Friday’s closing price of $34.93 per share. Most of the shares will be offered by Madison Dearborn Capital Partners, which currently is Sirona’s majority

Firms & Funds

Cazenove Capital Management has acquired Thornhill Holdings Ltd., a UK-based provider of wealth management services. No financial terms were disclosed.

Cendana Capital has formed as a new fund-of-funds by Michael Kim, a co-founding partner of Rustic Canyon Partners, according to NYT’s Bits blog.

F&C Private Equity has held a €30 million first close on Aurora Fund, which will acquire secondary interests in European private equity funds and co-investments. Aurora Fund’s first deal closed in October, when it bought Iceland-based Landsbanki’s private equity fund interests.

Haymarket Financial has been formed as a UK-based mid-market lender, by former Goldman Sachs partner Tim Flynn. TowerBrook Capital Partners is Haymarket’s majority owner, while other investors include OMERS Private Equity and the Public Sector Pension Investment Board.

Madison Williams & Co. has been formed via a management buyout of the principal capital markets business of Sanders Morris Harris Group.

Marlin Equity Partners has closed its third mid-market buyout fund with $650 million in capital commitments. It was originally targeting $450 million, with Probitas Partners serving as placement agent. The El Segundo, Calif.-based firm previously raised a $300 million fund in 2007.

RPM Ventures has closed its second fund with $60 million in capital commitments. The Ann Arbor, Mich.-based firm makes seed and early-stage investments in IT and physical sciences companies.

Human Resources

Brewster Boyd has joined Colorado cleantech incubator CleanLaunch as director of finance. He previously was a vice president with Plymouth Venture Partners and as a fellow with the Frankel Commercialization Fund.

Gregory Fleming has been tapped to run Morgan Stanley’s investment management group, which includes merchant banking. He previously was president and chief operating officer of Merrill Lynch.