Private Equity Week Wire for Friday 11/30

NEWTON UPPER FALLS, MA — Gazelle Systems, Inc. today announced a $3.25 million infusion of equity capital from Zero Stage Capital and Pennsylvania Early Stage Partners, a Safeguard Scientifics, Inc. (NYSE: SFE) affiliated private equity fund. Sodexho – a wholly owned North American subsidiary of Sodexho Alliance, the leading provider of food and facilities management in the U.S. and Canada – has also participated in this round of funding.SAN FRANCISCO — CascadeWorks, the leader in enabling services e-procurement, today announced the completion of its second round of financing. The $8 million round was led by Kennet Capital Limited — Broadview’s early stage venture affiliate, with existing investor NEA also participating. CascadeWorks will use the funding to continue its penetration of the growing market for services e-procurement solutions and to aggressively grow its customer base which currently includes leading companies such as ABN AMRO North America, Autodesk, Charles Schwab and Texas Instruments.New York ? DB Capital Partners, the private equity arm of Deutsche Bank, today announced the appointment of R. William Burgess, Jr. as Managing Director of DB Capital Venture Partners, the group?s venture capital unit. Burgess will manage diverse Deutsche Bank legacy private equity investments. In addition, he will be responsible for investments in software, infrastructure and communications technology companies.

Burgess brings 18 years of experience in investment banking, including 14 years with Deutsche Bank, Bankers Trust and Alex. Brown. He served as Vice-Chairman of Global Corporate Finance for Deutsche Bank and was a member of the Corporate Finance Management Committee for the Americas from 1998-2001. Earlier, he served as Global Co-Head of Investment Banking – Industry Groups for Banker?s Trust and Deutsche Bank and Head of the Technology Investment Banking Group from 1993-1998. He received his M.B.A. from Harvard Business School and his B.A. from Dartmouth College. Burgess is based in Deutsche Bank?s Boston office.

MENLO PARK, CA — KANA (NASDAQ: KANA), a provider of external-facing eCRMsolutions, today announced that it has secured up to $55 million in equityfinancing consisting of an agreement for a private placement from TechnologyCrossover Ventures and a completed $10 million common stock financing fromfunds associated with Amerindo Investment Advisors. These financingssignificantly enhance KANA’s cash position as the company continues on itspath to profitability.

CHELMSFORD, MA — SnowShore Networks, innovators in IP enhanced communications infrastructure products for “Service-Ready” networks, today announced it has accepted $5.6 million of additional Series B funding from 3i, a leading international venture firm capital firm whose extensive communications sector expertise, contacts, and global presence has been instrumental in the EMEA market entries of a long list of successful telecommunications companies.

SEATTLE — WorldCatch, the first technology-driven seafood production and marketing company, today announced that it has secured additional capital from existing shareholders as part of its third round of funding. Mohr, Davidow Ventures led the Series C financing with additional support from Madrona Venture Group and XMLFund. WorldCatch will utilize the money raised to provide working capital to support a growing customer base and new product development and marketing.

ST. LOUIS — Emerson (NYSE:EMR) today announced it has reached an agreement to sell its Chromalox division to JPMorgan Partners, a private equity group, for $165 million. The transaction is expected to be completed in early December. Chromolox, headquartered in Pittsburgh, is a leading global supplier of industrial heating solutions.

Chromalox, with annual sales of approximately $150 million, is a leader in designing and manufacturing of industrial electric heating and control products, and operates multiple manufacturing, engineering, warehousing and sales locations throughout North America and Europe.

HERZLIYA, ISRAEL — Formula Systems (1985) Ltd. (Nasdaq: FORTY), a leading provider of information technology products, solutions and services, today announced that another step was completed in its corporate restructuring. In July 2001, Formula announced the spin-off of the shares it held in Mashov Computers Ltd. to Formula’s shareholders. At the time, Mashov, which has since changed its name to Formula Vision Technologies (f.v.t) Ltd. (“Formula Vision”), was granted an option to acquire the interests held by Formula in privately-held companies that develop products and services intended primarily for international markets. This restructuring move would enable Formula’s shareholders to separately hold interests in publicly-traded companies through their Formula shares, and in smaller, privately-held companies through Formula Vision. Formula Vision advised Formula today of its exercise of the option granted in July on the terms described below.

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