peHUB Wire: Wednesday, August 18, 2010

Top Three

Lone Star Funds reportedly has indefinitely suspended its plan to sell a majority stake in Korea Exchange Bank for an estimated $4 billion.

Marlin Equity Partners has agreed to acquire Phoenix Technologies Ltd.

(Nasdaq: PTEC), a maker of core systems software. The $3.85 per share deal values Phoenix at around $139 million, and represents a 27% premium to yesterday’s closing price.

Zynga has acquired Conduit Labs, a Cambridge, Mass.-based social gaming company. No financial terms were disclosed. Zynga has raised around $390 million in total VC funding, from Softbank, Digital Sky Technologies, Andreessen Horowitz, Tiger Global, Institutional Venture Partners, Kleiner Perkins Caufield & Byers, Union Square Ventures, Foundry Group and Avalon Ventures. Conduit Labs had raised $8.5 million from Charles River Ventures and Prism VentureWorks.

VC Deals

Quick Heal Technologies, an Indian provider of computer security software, has raised nearly $13 million from Sequoia Capital India.

Si-Bone Inc., a San Jose, Calif.-based developer of a minimally-invasive surgical device to treat the sacroiliac joint, has raised $11 million in new VC funding led by Skyline Ventures.

Buyouts Deals

EBS Building Society of Ireland is expected to receive takeover bids this week. Suitors may include Irish Life & Permanent, J.C. Flowers & Co., Doughty Hanson and Cardinal Asset Management.

MBK Partners has a short-list for its planned sale of Taiwan cable company China Network Systems, which is expected to garner around $2 billion. The list includes: Bain Capital, Macquarie Group, Permira and Providence Equity Partners.

Revelry Brands has acquired a minority stake in Data Garden, a New York-based provider of data analytics to natural food brands. No financial terms were disclosed.

Reynolds Group Holdings, controlled by New Zealand billionaire Graeme Hart, has agreed to buy Hefty bag maker Pactiv Corp. (NYSE: PTV) for around $6 billion (including assumed debt). Losing bidders included Apollo Management. The $33.25 per share offer represents a 7.5% premium to Monday’s closing share price.

JER Partners is exploring a possible bankruptcy filing for debt-ridden hotel chain Highland Hospitality Corp., according to the WSJ.

PE-Backed IPOs

Endocyte Inc., a West Lafayette, Ind.-based developer of receptor-targeted therapeutics for the treatment of cancer and autoimmune diseases, has filed for an $86.25 million IPO. It plans to trade on the Nasdaq under ticker symbol ECYT, with RBC Capital Markets and Leerink Swann serving as co-lead underwriters. The company has raised around $61 million in VC funding since 2001, from was joined by return backers Sanderling Ventures, Clarian Health Ventures, Burrill & Co., American Bailey Ventures, Blue Chip Venture Co., and Triathlon Medical Ventures.

PE Exits

Broadridge Financial Solutions Inc. (NYSE: BR) has agreed to acquire NewRiver Inc., an Andover, Mass.-based provider of electronic investor disclosure solutions. The deal is valued at $77 million. NewRiver shareholders include Lazard Technology Partners, FirstMark Capital and Ironside Ventures.

BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) has acquired ZyStor Therapeutics Inc., a Milwaukee-based developer of enzyme replacement therapies for the treatment of lysosomal storage diseases. The deal is valued at up to $111 million, including a $22 million up-front payment and $93 million in earn-outs. ZyStor raised $8.5 million in VC funding in 2004, from Mason Wells, Venture Investors, Prolog Ventures, State of ! Wisconsin Investment Board, Hexagon Investments, Apjohn Ventures and Stonehenge Capital.

Yahoo is in advanced talks to acquire CafeMom,a New York-based social networking Web site for mothers, according to All Things D. The company has raised around $50 million in VC funding from firms like Draper Fisher Jurvetson, Perseus and Highland Capital Partners.

PE-Backed M&A

Groupon, a Chicago-based group buying site, has acquired Japanese rival Qpod and Russian rival Darberry. No financial terms were disclosed for either deal. Groupon has raised over $165 million in VC funding, from Digital Sky Technologies, Battery Ventures, Accel Partners and New Enterprise Associates.

Heartland Dental Care Inc., an Effingham, Ill.-based chain of affiliated dental practices, last quarter acquired nine practices and opened three new facilities, bringing its total number of practices to 263. Code Hennessey & Simmons acquired an undisclosed stake in Heartland Dental in 2008.

Human Resources

CalSTRS has promoted John Petzold to the new position of deputy chief investment officer/director of investment management. He previously was director of investment operations.

Sarah McFadden Sandström has joined Atlantic-Pacific Capital as a partner. She will focus on helping to raise funds for European clients, and previously was a director in Credit Suisse’s private funds group.

Manish Patel has joined the Menlo Park office of Highland Capital Partners as a principal. He previously held various product management and executive management roles at Google.