Private Equity Week Wire for Tuesday 8/28

SAN JOSE, CA — AccessLan Communications Inc., a pioneer of IP-enabled access provisioning, today announced that it has raised $16 million in new equity financing. AccessLan’s latest round of funding is led by a number of financial institutions, publicly owned companies and several private investors, including Advanced Fibre Communications, Inc., Accel Partners, BancBoston Ventures, Highland Capital, The Ignite Group, NIF Ventures, Sequoia Capital, and Tudor Private Equity Fund. AccessLan will utilize the new funding to expand its development of a new high-capacity IP/ATM platform, which serves as the foundation for highly scaleable access networks. With AccessLan’s new technology, network service providers can rapidly deploy large-scale broadband service networks while enabling new residential and commercial applications.

BETHESDA, MD — American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it has invested $12 million in BLI Holdings Corp., an outsource manufacturer and packager for the personal care products industry. American Capital’s investment took the form of senior subordinated debt and was used to refinance BLI’s existing debt. Maintaining their original investments are private equity firms Bain Capital and Charles River Capital Partners. GE Capital and ING are the senior lenders.

SAN FRANCISCO — CaseCentral, the leading provider of Web-based litigation extranets that enable legal teams to collaborate, access and organize data in a secure online environment, today announced it has closed a $5 million Series C late stage funding round. Led by Advanced Technology Ventures (ATV), the new round validates CaseCentral’s highly successful growth as a seasoned enterprise and positions the firm to extend its leadership position. CaseCentral will leverage its existing client base into a significant business expansion, supported by the legal market’s enthusiastic response to the company’s core technology. The late stage funds will drive sales and marketing programs, including new strategic channel partner relationships, and support the company’s next major product roll out to the financial services marketplace.

AUSTIN, TEXAS — United Devices Inc., an edgedistributed computing software and services company, announced today that ithas secured $18.2 million in series B funding from a blue chip group ofleading venture capitalists and global corporations. GE Equity, the privateequity-investing arm of GE, and Constellation Ventures led the funding withAOL Time Warner Ventures, Intel Capital, and 550 Digital Media Ventures, aSony Group company, also participating in the round. Previous investorsSOFTBANK Venture Capital and Oak Investment Partners invested as well. UnitedDevices will use the funding to help build its sales team, accelerate productdevelopment, and increase marketing initiatives.

SEATTLE — Voyager Capital, Seattle’s leading e-business venture firm, today announced that Jodi Sherman Jahic, formerly with Battery Ventures, has joined Voyager Capital as a senior associate. Jahic will be responsible for identifying and sourcing investment opportunities in communications software, wireless data, and Internet infrastructure. Jahic will work out of the firm’s Palo Alto office headed by managing director, Curtis Feeny. Prior to joining Voyager, Jahic was a senior associate and Kauffman Fellow at Battery Ventures. At Battery, Jahic spearheaded the firm’s wireless investment effort, which resulted in several investments. Jahic has been a board observer for MoreMagic Software, a provider of carrier-class wireless transaction systems; Informio, a VXML networking platform for wireless devices; and IBEX Process Technology, yield control systems for semiconductor manufacturing. Jahic joined Battery Ventures as part of the Kauffman Fellows program, an intensive hands-on apprenticeship designed to train the next generation of venture capital leaders.

SAN FRANCISCO — Military Advantage today announced that total funding has reached $31 million, with a new $5.5 million round of financing from Mayfield Fund, U.S. Venture Partners and Primedia Ventures. Military Advantage provides commercial and government entities with unprecedented access to the military market, a loyal market with over $2 trillion in annual spending power.

VANCOUVER — Mercury Partners & Co. Inc. (OTCBB: MYPIF) (CDNX: MYP.U), a financial service company engaged in merchant banking and private equity activities, and Pacific Mercantile Co. Ltd. (CDNX: PMF), a closed-end investment company, announced today that the two companies have entered into an agreement pursuant to which Pacific will amalgamate with a wholly-owned subsidiary of Mercury (the “Amalgamation”). On a consolidated pro forma basis, based on June 30, 2001 results, the combined operations would have assets of USD $3.8-million, net asset value of $0.57 per share and six month consolidated pro forma earnings of $0.06 share.

LOS ANGELES — Flexxtech Corp. (OTCBB:FLXC) announced today that it has received first-round funding to be followed by a $10 million offering. May Davis Group, Inc., (MDG) was the placement agent and acted as an advisor in the transaction. May Davis Group, Inc. of New York, New York, is an NASD member firm specializing in merchant banking and institutional services. In addition, the Company has entered into a $10 million financing agreement with Dutchess Private Equity Fund, L.P. of Danbury, Connecticut. MDG and Dutchess Advisors, Ltd. acted as advisors to the transaction.

SPRINGFIELD, MA — Nu Visions Manufacturing, a leading electronic manufacturing services (EMS) provider, Friday announced that it has completed a management-led acquisition of the company in partnership with Golden Gate Capital, a San Francisco-based private equity firm. Nu Visions is the former EMS subsidiary of Nu Horizons Electronics Corp. (Nasdaq: NUHC), a distributor of active and passive components. Nu Visions specializes in providing high-complexity, low-volume electronic manufacturing services to original equipment manufacturers (OEMs) in the defense, industrial, and medical industries. The company provides these services from its state-of-the-art, 50,000 square foot facility in Springfield.

BIRMINGHAM, MI — Sloan Ventures LLC, specialists in seed and early-stage venture development and funding, today announced the establishment of the Michigan Life Sciences Corridor (MLSC) Catalyst Fund. The MLSC Catalyst Fund provides seed funding to promising innovators and entrepreneurs engaged in the creation of new life sciences companies in the State of Michigan. Streamline Proteomics LLC has become the first beneficiary of the fund’s creation with the closing of seed funding on July 20, 2001.

The fund structure consists of $843,000 of MLSC resources managed by Sloan Ventures and is designed to precede a first formal round of “Angel” or VC funding. Funds will be disbursed in increments of up to $150,000 to companies at the earliest stages of their development for the purpose of jump-starting key initiatives at recipient companies such as product development, recruitment, patent searches and filings, and other critical activities. Investments are made as convertible loans with a 2-year term bearing interest at a rate of 6% per year, repayable in quarterly installments. At the discretion of the MLSC, such loan may be converted into equity in the company at the time, and on the terms, of such company’s first round equity financing. Qualifying companies must be engaged in life sciences research, have a substantial portion of their operation in the State of Michigan, and have completed due diligence proceedings with Sloan Ventures. MIAMI — Aphton Corp. (Nasdaq: APHT) announced today that the Company has closed a $14.25 million private equity financing with several institutional investors. Aphton sold approximately 1.2 million shares of common stock at $12.00 per share, representing a discount of 15.6% to Friday’s close. UBS Warburg acted as the placement agent on the transaction and Miller Johnson Steichen Kinnard assisted in the transaction.

For yesterday’s Wire, click here