peHUB Wire: Wednesday, March 3, 2010

Top Three

The Carlyle Group is among several firms to invest a total of $550 million of new equity into Butterfield, a Bermuda-based community bank and provider of specialised international financial services. Other participants include Canadian Imperial Bank of Commerce, the Wellcome Trust, The Bermuda Government Pension Funds, Julian Robertson and Goshen Investments.

ExactTarget, an Indianapolis-based maker of email marketing software, has acquired CoTweet, provider of a Web-based collaboration platform that allows companies t! o manage multiple Twitter accounts from a single dashboard. ExactTarget has raised around $155 million in VC funding, from Technology Crossover Ventures, Battery Ventures, Insight Venture Partners, Ontagu Newhall and Scale Venture Partners. CoTweet has raised a small amount of funding from First Round Capital, Founders Fund and Maples Investments.

Goldman Sachs has cut the $7.5 billion target for its second infrastructure fund by more than half, due to soft investor interest. The firm’s debut infrastructure fund clos! ed in 2006 with $6.5 billion.

VC Deals

Cloudmark, a San Francisco-based provider of carrier-grade messaging security solutions, has raised $23 million in fourth-round funding. Summit Partners led the round, and was joined by Nokia Growth Capital and return backers Ignition Partners and Industry Ventures.The company’s previous financing round was in 2004, when it raised $11 million.

Adenyo (f.k.a Silverback Media), a Toronto-based provider of mobile marketing software, has raised US$26.9 million in financing led by Genuity Capital Markets.

Altor Networks, a Redwood Shores, Calif.-based provider of security for vir! tualized data centers and clouds, has raised $10 million in Series B funding. DAG Ventures and Juniper Networks were joined by return backers Accel Partners and Foundation Capital.

Perfect Market Inc., a Pasadena, Calif.-based provider of marketing services for publishers, has raised $6 million in Series C funding. Tribune Co. led the round, and was joined by return backers Trinity Ventures, Rustic Canyon Partners and Idealab. The company previously raised nearly $40 million since 2005.

Desktone Inc., a Chelmsford, Mass.-based developer of a unified virtual desktop platform,hassecured around $5.4 million of a $12.2 million Series B round, according to a regulatory filing.The company raised a $17 million Series A round in 2007,fromHighland Capital Partners, S! oftBank Capital and Citrix Systems.

Cleveland HeartLabLLC, a clinical reference laboratory specializing in cardiovascular diseases, has raised $3 million in new VC funding. Backers include Glengary LLC, Second Generation Ltd. and Zapis Capital Group LLC.

Gold Standard Diagnostics Inc., a Davis, Calif.-based provider of diagnostics solutions to reference and hospital laboratories in North America, has raised an undisclosed amount of Series A funding led by individual angels like Roger Salquist (former Calgene Inc. who also served as a managing director of Bay City Capital).

Buyouts Deals

E.ON, a Germany-based utility, is mulling a sale of its U.S. unit. Such a deal could be worth upwards of €4.5 billion.

Hammond, Kennedy, Whitney & Co. has sponsored a recapitalization of NaturMed Inc., a Camp Verde, Ariz.-based developer and distributor of nutritional and health supplements. No financial terms were disclosed.

J.P. Morgan Asset Management and Water Asset Management have agreed to acquire SouthWest Water Co. (Nasdaq: SWWC). The take-private deal is valued at around $275 million, or $11 per share.

Lime Rock Resources has made two acquisitions: T! he Potato Hills natural gas field in southeast Oklahoma, and interests in wellbores in the Texas Gulf Coast region adjoining its existing New Years Ridge property. The combined deals were worth $113 million.

LyondellBassell, a bankrupt U.S. petrochemicals company, has rejected a $14.5 billion buyout offer from India’s Reliance Industries, setting up lead creditor Apollo Management to propose a reorganization plan on Monday.

Pierpont Securit! ies LLC has launched as a government securities broker-dealer , with $200 million in capital commitments from General Atlantic and Stone Point Capital. Company management has committed an additional $20 million.

Roark Capital Group is in talks to acquire Peachtree Business Products, an Atlanta-basedprovider of direct marketing supplies, according to a regulatory filing. No pricing terms were disclosed.

Royal Bank of Scotland has set an April 7 deadline for bids on its WorldPay payment processing unit and more than 300 bank branches. Possible WorldPay suitors include Advent International, Apax Partners and BC Partners.

Siemens is considering alternatives to the planned sale of its hearing aids business, after initial bids ca! me in below the €2 billion asking price.

Warburg Pincus plans to buy up to $230 million of common stock in Citigroup life insurance unit Primerica Inc., in connection with a planned IPO for Primerica.


Swoozie’s, a retailer of luxury gifts and stationery products, filed for Chapter 11 bankruptcy protection. Company shareholders include Brand Equity Ventures, Northwood Ventures and TWJ Capital.

PE-Backed M&A

Monarch Natural Gas, a portfolio company of Metalmark Capital Partners, has completed previously announced deal for most of the Riverbend midstream assets of Gasco Energy (NYSE Amex: GSX). The transaction was valued at $23 million in cash, and included related salt water evaporative facilities.

PE Exits

HM Capital Partners has completed its sale of health foods company Sturm Foods to TreeHouse Foods Inc. (NYSE: THS), for $660 million. Sturm makes health drink mixes and sticks, instant oatmeal and hot cereals.

Thermo Fisher Scientific Inc. (NYSE: TMO) has completed its previously-announced acquisition of Ahura Scientific Inc., a Wilmington, Mass.-based developer of optical systems for the detection of unknown and suspect substances. The deal was valued at $145 million in cash, plus an undisclosed amount of earnouts based on 2010 financial milestones. Ahura Scientific had raised nearly $30 million, from firms like ARCH Venture Partners, Castile Ventures, Fuse Capital (fka ComVentures) and GF Private Equity.

Firms & Funds

BC Partners plans to target sovereign wealth funds when it begins marketing a new €6 billion fund in the second half of this year, according to managing partner Charlie Bott.

EFG-Hermes, an Egyptian investment bank, plans to launch a $250 million to $300 million private equity fund focused on the “untapped” Syrian market. It also is opening an office in Damascus.

Mantella Venture Partners has formed a C$20 million fund to focus on early-stage technology companies in Ontario, Canada. The fund is a joint venture between ! tech accelerator Basecamp Labs andreal estate developer Mantella Corp.

Human Resource

Rick Anderson, a managing director with PTV Sciences, has been named interim CEO of Cardiva Medical Inc., a Mountain View, Calif.-based developer of vascular closure devices. The move follows the resignation of company founder and CEO Augustine Lien. Cardiva has raised around $49 million in VC funding from PTV, Galen Partners, Sycamore Ventures, Amkey Ventures, Lexli Investment and Eminent Venture Capital.

Susan Barnes has been named chief financial officer for Pacific Biosciences, a VC-backed company focused on DNA gene sequencing. She is a onetime managing director in the private equity group ofJefferies & Company.

Holger Reithinger has! stepped down as a partner with Global Life Science Ventures, according to VentureWire. No word yet on his future plans. The European venture firm is planning to restart an earlier attempt to raise €150 million for its third fund.