peHUB Wire: Thursday, July 8, 2010

Top Three

iPierian Inc., a South San Francisco-based regenerative medicine company that uses induced pluripotent stem (iPS) cells, has raised $22 million in Series B funding. Google Ventures led the round, and was joined by Mitsubishi UFJ Capital, ATEL Ventures and return backers MPM Capital, Highland Capital Partners and Kleiner Perkins Caufield & Byers.

WL Ross & Co. has agreed to lead a $100 million investment into Sun Bancorp Inc. (Nasdaq: SNBC). The $4 per share deal would provide the investors with a 24.9% of Sun Bancorp’s outstanding common stock.

Body Central, a Jacksonville, Fla.-based apparel retailer focused on women in their late teens and twenties, has filed for an $86.25 million IPO. It plans to trade on the Nasdaq under ticker symbol BODY, with Piper Jaffray and Jefferies & Co. serving as co-lead underwriters. The company reports $2.78 million in net income for 2009, on $198 million in revenue. WestView Capital Partners holds a 31.57% pre-IPO ownership position, while PineBridge Investments holds a 29.84% stake. www.bodyc.com

VC Deals

Calithera Biosciences, a South San Francisco-based developer of oncology therapeutics, has raised $40 million in Series A funding. Morgenthaler Ventures led the round, and was joined by U.S. Venture Partners, Advanced Technology Ventures, Delphi Ventures and Mission Bay Capital.

Poxel SA, a French drug development spinout from Merck Serono, has raised €16 million in Series A funding. Edmond de Rothschild Investment Partners led the round, and was joined by InnoBio and Crédit Agricole Private Equity. The company’s lead candidate is focused on Type 2 diabetes.

eMeter Inc., a San Mateo, Calif.-based provider of smart grid management software, has raised $12.5 million in new VC funding from return backers Sequoia Capital and Foundation Capital. The company previously raised over $32 million.

Dayforce, a provider of on-demand workforce management solutions, has raised $10 million in new VC funding led by Bridgescale Partners. The round is split into a pair of $5 million tranches, and brings total investment in the company to $20 million. Dayforce has offices in Toronto and Georgia.

Aurora Feint Inc., a Burlingame, Calif.-based social gaming platform for the iPhone, has raised an undisclosed amount of VC funding from The9 Ltd. (Nasdaq: NCTY). VentureWire puts the investment total at around $5 million.

XGraph, a provider of social network analysis for ad targeting, has raised $3.75 million in first-round funding led by Rho Ventures. The company has offices in New York and Silicon Valley.

Environmental Operating Solutions Inc., a Bourne, Mass.-based provider of water purification solutions, has raised $3.5 million in VC funding. MidPoint Food & Ag Fund and Meidlinger Partners were joined by existing backer Stuar! t Mill Venture Partners.

ThredUp, a Cambridge, Mass.-based online kids clothing exchange, has raised $1.7 million in first-round funding. Trinity Ventures led the round, and was joined by Founder Collective, High Line Ventures and NextView Ventures.

BuyWithMe.com, a New York-based developer of marketing solutions using group buying mechanisms and leveraging social media, announced that Bain Capital Ventures has led its recent $16 million Series B round. Existing investor Matrix Partners also participated. peHUB first reported on the deal Tuesday, based on a regulatory filing.

Buyouts Deals

Court Square Capital Partners has acquired the performance support software unit of RWD Technologies. No financial terms were disclosed.

Grandpoint Capital of Los Angeles has secured $375 million in new capital commitme! nts, including $100 million from Stone Point Capital. Around $75 million of the fundraise will be used to launch a new, mid-market banking unit.

Hale Capital Partners has sponsored a recapitalization of Telenetix Inc. (OTC BB: TNXI), a Bellevue, Wash.-based provider of voice services to the business market. The deal includes $3 million of working capital, and allowed Telenetix to reduce its outstanding senior debt from $29.6 million to $7.5 million.

LLR Partners has agreed invest an undisclosed amount in Lightspeed Financial Inc., a provider of direct market access trading technology, risk management solutions and brokerage services. Lightspeed will use some of the proceeds to fund its previously-announced acquisition of Terra Nova Financial.

Ondine Biopharma (TSX: OBP) has agreed to sell a majority position in a to-be-formed subsidiary, Sinuwave Technologies, to a group of undisclosed European private equity investors. Sinuwave will develop photodisinfection solutions for the chronic sinusitis market. The total deal could be valued at around $3.1 million.

Stirling Square Capital Partners has acquired Environmental Solutions Europe Holding BV, a! Germany-based maker of waste containers and recycling systems, from OTTO Group. No financial terms were disclosed.

The U.S. trustee overseeing Extended Stay America’s bankruptcy case yesterday asked a judge to reject the hotel chain’s plan to reorganize, saying it shortchanges creditors.

Welsh, Carson, Anderson & Stowe has acquired a majority stake in K2M Inc., a Lessburg, Va.-based provider of solutions for the treatment of complex spinal pathologies. No financial terms were disclosed. Existing! K2M backer Ferrer Freeman & Co. will retain an ownership percenta ge.

PE Exits

The Quadrangle Group is putting rural cable and broadband provider Hargray Communications Group Inc. up for auction, according to The Wall Street Journal. The deal could generate upwards of $400 million.

Synchronoss Technologies Inc. (Nasdaq: SNCR) has agreed to acquire FusionOne Inc., a San Jose, Calif.-based provider of mobile content transfer and synchronization technology. The deal includes an up-front payment of $32 million in cash and $8 million in stock, plus up to $35 million in earn-outs. FusionOne has raised over $140 million in VC funding, including a 2006 venture recap. Investors include El Dorado Venures, BlueRun Ventures, JPMorgan Partners, HP, Credit Suisse, Essex Financial, J&W Seligman and Pyramid Technology Ventures.

Firms & Funds

The Carlyle Group is being sued by the liquidators of a failed mortgage-backed securities fund that Carlyle launched in 2006.

Infrastructure Development Finance Co. will raise up to $179 million via the sale of convertible securities to private equity firm Actis and Malaysian state finance fund Khazanah.

Human Resources

Battery Ventures has promoted three principals to partner: Jesse Feldman, Brian O’Malley and Satya Patel.

Churchill Financial Holdings has promoted Chris Cox to managing director and chief risk officer, and promoted Thomas Hennigan to senior vice president and head of underwriting and portfolio management.

Mike Majors has joined Siemens Venture Capital as a Boston-based investment partner. He previously was chief financial officer of employment search engine Indeed.com.