FORT LAUDERDALE — Seabulk International Inc. (Nasdaq: SBLK) today announced the signing of a definitive agreement with DLJ Merchant Banking Partners III LP, a CSFB Private Equity fund, and affiliated entities, and Carlyle/Riverstone Global Energy and Power Fund I LP for the private placement of 12.5 million shares of newly issued Seabulk common stock at a cash price of $8.00 per share. The $100 million investment would give the new investors approximately 51% of the pro forma, fully diluted common shares of the Company and majority representation on its Board of Directors. The investment is subject to shareholder approval, the refinancing of the Company’s senior credit facility, certain regulatory approvals and satisfaction of other customary conditions.
The new investors have also agreed to purchase, for $8.00 per share, all of the Company’s common stock and common stock purchase warrants beneficially owned by accounts managed by Loomis, Sayles & Co., L.P., an SEC-registered investment advisor. These accounts, which collectively represent approximately 49% of the Company’s outstanding shares of common stock, currently hold approximately 5.2 million shares (excluding shares issuable upon exercise of warrants). Loomis has agreed to approve the investment transaction and the related amendments to the Company’s Certificate of Incorporation, subject to approvals and certain other conditions customary for transactions of this type.
PHILADELPHIA — Greater Philadelphia Venture Group (GPVG), the region’s most prominent catalyst for equity investment, today made public the results of a study for the mid-Atlantic venture capital market showing that venture capital dollars under management grew at a compound annual growth rate of more than 54 percent. From just $256 million in 1991, venture capital under management swelled to $12.7 billion by the end of 2000.
The results, as well as the trends underlying them are summarized in a paper titled The State of the Venture Community in Greater Philadelphia and the Mid-Atlantic Market. The survey, conducted by the Pennsylvania Economy League and commissioned by GPVG, identified 81 venture capital firms currently active in the Greater Philadelphia region with a total of $10 billion in assets under management. More than 30 of these regional firms did not exist before 1995.
PALO ALTO, CA — The Indian Venture Capital Association (IVCA) today announced the formation of the Silicon Valley Chapter of the IVCA, which is the first the organization has established outside of India. It was founded to foster relationships and interaction among Silicon Valley-based venture capital and private equity organizations that are interested in investing in Indian entrepreneurs and companies. The Silicon Valley Chapter of IVCA today also named the charter members of the organization’s executive committee, which includes Sumir Chadha, senior managing partner, WestBridge Capital Partners; Ravi Mohan, general partner, Battery Ventures; Ash Lilani, division manager, South Bay Region, Silicon Valley Bank; Dinesh Vaswani, general partner, Walden International; Navin Chugh, vice president, Vertex Management; and Dhimant Bhayani, managing partner, INC3 ventures.
LOS ANGELES — Korn/Ferry International (NYSE:KFY) announced today the private placement of $50 million of convertible securities — $40 million of 7.5% Convertible Subordinated Notes and $10 million of 7.5% Series A Convertible Preferred Stock (collectively the “Securities”) to Friedman, Fleischer & Lowe LLC (FFL), a San Francisco-based private equity firm. The Securities are convertible into shares of Korn/Ferry common stock, at FFL’s option, at a conversion price of $10.25 per share. If converted, the Securities would represent approximately 4.9 million shares, or 11.4%, of Korn/Ferry outstanding common stock. In addition, Korn/Ferry issued to FFL warrants to purchase 272,727 common shares with an exercise price of $12.00 per share.
NEWS FROM THURSDAY 6/13
WALTHAM, MA — Despite the lagging economy, Indus-American companies raised about $1.7 billion in venture capital in 2001, significantly increasing their share of the total U.S. venture capital market to 4.5 percent, according to the second annual survey of Indus-owned venture recipients published by the IndUS Business Journal.
AUSTIN, TEXAS — Powered Inc., a leading provider of Learning-Driven Commerce solutions, today announced that it has secured an additional $9 million in funding from Austin Ventures and Liberty Mutual. The investment will be used to increase marketing and sales efforts and to expand development of its award-winning platform.
SAN JUAN CAPISTRANO, CA & WAYNE, PA — ChromaVision Medical Systems Inc. (Nasdaq: CVSN) and Safeguard Scientifics, Inc. (NYSE: SFE) today announced an agreement pursuant to which Safeguard will invest up to $7 million in return for shares of ChromaVision Common Stock, acquire shares of ChromaVision’s outstanding Series D Preferred Stock (having a liquidation preference of $10.7 million) from current holders and guarantee a line of credit in a follow-on debt transaction in the amount of up to $3 million. Each of the holders of the $12.5 million of the Series D Preferred Stock has agreed, subject to certain exceptions, to convert its Series D holdings into Common Stock after receipt of the requisite stockholder approval, thereby eliminating the liquidation preferences and other preferential rights of the Series D Preferred Stock. This comprehensive $22.5 million debt and equity-refinancing package substantially strengthens ChromaVision’s financial position and improves its capital structure.
DENVER — InFlow, Inc., a leading provider of managed web hosting and IT services, today announced it has raised an additional $35 million in private equity financing. The additional capital will be used to enhance the company’s service platform. This new round of financing is being led by established venture capital firms Telecom Partners, Centennial Ventures and Meritage Private Equity Funds in Denver, Colo., and includes Inflow’s existing investors: Spire Capital Partners, The Halyard Capital Fund, Stolberg Equity Partners and Cornerstone Equity Investors. To date, Inflow has raised $297 million in equity capital.
CHICAGO — The Illinois Venture Capital Association (IVCA) today announced that the Illinois General Assembly has passed the Technology Development Act (House Bill 3212). The bill, spearheaded by Illinois State Treasurer Judy Baar Topinka, gives the Treasurer the authority to invest up to one percent of the state’s investment portfolio, up to a maximum of $60 million, in Illinois venture capital and private equity funds.
BALTIMORE — New Enterprise Associates (NEA) today announced that it has invested $10 million in ForHealth Technologies, Inc., a developer of automated intravenous drug preparation technology for hospital pharmacies. NEA led the financing; other investors include CB Health Ventures, Affinity Capital, and Chisholm Private Capital Partners.
AIX-EN-PROVENCE, FRANCE — Inside Contactless, formerly known as Inside Technologies, today announced the closing of an additional equity funding of 10 million euros coming from 3 new investors: Siparex Ventures from France (2.6 Million euros, lead-investor), Vertex Funds in Singapore (2 Million euros), NIF Ventures Co., Ltd. in Japan (2 Million euros); and from the main historical investors (GIMV and Alta Berkeley).
Two of the new investors are represented on the Supervisory Board of Inside by Remy de Tonnac, from Vertex, the former Gemplus CEO for Asia Pacific and the Americas, who joined Vertex late last year, and Siparex Ventures by Richard Vacher Detourniere. Other Board members, representing the key historical investors are Alex Brabers from GIMV and Tim Brown from Alta Berkeley Venture Partners, Chairman of the Board.
BETHESDA, MD — American Capital Strategies Ltd. (Nasdaq: ACAS) announced today that it has invested $21.5 million in a new company purchasing all of the outstanding stock of Precitech Inc., a designer and manufacturer of ultra-precision machining systems. The new company is acquiring Precitech from the Permira Funds, and affiliates and certain managers of Taylor Hobson Limited. American Capital will control 88% of the company. The investment takes the form of a senior credit bridge facility, senior term loan, senior subordinated note with warrants and preferred and common equity. Management is making a significant investment in the company by rolling over substantially all of their common equity.
NEWS FROM WEDNESDAY 6/12
WATERTOWN, MA — Enanta Pharmaceuticals Inc., a chemistry-driven biopharmaceutical company developing macrolide antibiotics and immunosuppressants, announced that it has completed a first closing on $18 million in private financing from new and existing investors. The financing was co-led by BioVentures Investors and Biomedicine L.P., an affiliate of International BM Biomedicine Holdings (IBMH). Global Biomedical Partners, Ltd., as the exclusive investment advisor to IBMH, represented Biomedicine L.P. in this transaction. Pacific Growth Equities, Inc. served as placement agent for the offering.
Enanta Pharmaceuticals has raised an aggregate of $43 million to date. Investors in this latest round also included TVM Techno Venture Management, Oxford Bioscience Partners, Advent International, Lancet Capital, Swisslife Private Equity Partners, MC Financial Services and Wheatley Medtech Partners, LP. The Company plans to complete additional closings in the coming months.
SOMERSET, NJ — Lumeta Corp., a network management and security solutions supplier to Fortune 1000 companies and government agencies, today announced the details of its Series B funding. New investor Wachovia Strategic Ventures Group led the round of $8 million. Existing investors Draper Fisher Jurvetson Gotham Ventures, Draper Fisher Jurvetson, meVC Draper Fisher Jurvetson Fund I (NYSE:MVC) and New Venture Partners, LLC also participated in the round.
SAN FRANCISCO — Canton Venture Capital Co. (CVCC) has opened an office in the San Francisco Bay Area. Founded in December 1999, CVCC is a $75 million venture capital firm headquartered in Guangzhou, China, specializing in equity financing for high-tech companies at various stages of development, venture investment fund management and investment consulting.
SAN FRANCISCO — mPower, a leading provider of online investment advice, education and advice solutions, today announced that it has secured $7.8 million in new funding to continue its aggressive market expansion plans. Participating in this round are lead investor Capital Z Financial Services Fund II, LP, along with the company’s other leading financial investors, Norwest Venture Partners, Allegis Capital, and Northwestern Mutual.
MAHWAH, NJ — Data Systems & Software Inc. (Nasdaq: DSSI), announced today that New York- based private equity fund Laurus Master Fund has made a $2 million investment in DSSI in exchange for a convertible note and a three-year warrant to purchase 125,000 shares of DSSI stock at an exercise price of $4.20.
HUNTINGTON BEACH, CA — MindArrow Systems Inc. (Nasdaq:ARRW), the enterprise messaging software and services provider, today announced that it has obtained a commitment for up to $4 million in additional financing, led by Los Angeles-based East-West Capital Associates, a private equity management company focused on opportunities for media and communications software and services.
The first $1.8 million of the investment will fund immediately, with $1.2 million to close upon approval of the second phase of the transaction by shareholders, and an additional $1 million commitment that can be called on by MindArrow’s board of directors. In addition, Merv Adelson, the chairman of East-West and former vice-chairman of Time Warner, will join MindArrow’s board of directors.
NEWS FROM TUESDAY 6/11
SANTA CLARA, CA — PortalPlayer, Inc., today announced that it has closed a $42 million financing round. The Series D round, which brings total venture investment in the company to $80 million, strengthens the company’s position as the only supplier of digital audio technology platforms for the consumer electronics market. The round was co-led by J.P. Morgan Partners, Investcorp International and Shamrock Capital Advisors. Investcorp and Shamrock Capital, which are new investors in the company, both contribute capital and extend PortalPlayer’s reach into key business communities and global markets. Additional participants include CIBC World Markets, Linear Technology Corporation, LSI Logic Corporation, the Band of Angels Fund, Thomas Spiegel and Portal Partners.
SAN FRANCISCO — The Shansby Group, a leading private equity investment group specializing in consumer brands, today announced the appointment of Scott Elaine Case as a Principal of the firm. She had been a Managing Director at Deutsch Banc Alex. Brown, an investment banking firm. At the same time, The Shansby Group also announced the promotion of Alex Panos from Vice President to Principal.
WINCHESTER, MA — Applied Messaging Corp. today announced the closing of its first round of financing. The company has raised $7.4 million from two prominent venture capital firms, North Bridge Venture Partners and Polaris Venture Partners, and a small number of individual investors. It was also announced as part of the funding that Rich D`Amore, general partner, North Bridge Venture Partners and Dave Barrett, general partner, Polaris Venture Partners, have joined the company’s Board of Directors.
CLINTON, NJ — Magnolia Broadband Inc., a developer of integrated, multi-transceiver, low-power RF chips for mobile phones, has raised an additional $1.5 million as part of an oversubscribed Series B round. The funding was provided by Draper Fisher Jurvetson Gotham Ventures of New York (“DFJ Gotham”), and supplements the $6 million raised in April by Magnolia Broadband in a round led by ECentury Capital Partners of McLean, Virginia and SCP Private Equity Partners of Wayne, Pennsylvania. Proceeds of the round will be used to complete customer trials of Magnolia’s flagship chipset.
REDWOOD CITY, CA — CenterRun Inc., a leading provider of software to automate the configuration and deployment of web applications in enterprise data centers, today announced that it has secured $12 million in its second round of funding. New investor Crosslink Capital led the round with participation from Needham Capital Partners and existing investor Sequoia Capital.
In conjunction with the investment, Vladimir Jacimovic, Managing Director of Crosslink Capital, will join CenterRun’s Board of Directors. Current members include Michael Moritz of Sequoia Capital; John Dillon, CEO of Navis; Tom Shanahan of Needham Capital Partners; and Aaref Hilaly, President, CEO, and Co-founder of CenterRun.
PORTLAND, MAINE — IntelliCare, a leading provider of healthcare communication technology and service today announced the completion of a $10.15 million private placement. IntelliCare’s second round of financing — led by Canaan Partners — bolsters the company’s ability to accelerate its market penetration throughout the United States and Canada. Joining Canaan Partners in the financing are Cutlass Capital LLC, Salix Ventures, Cardinal Partners, Redhills Ventures LLC and existing shareholders.
SEATTLE — National Broadband Service Provider Speakeasy today announced it has secured $6 million in new capital funding for the expansion of its infrastructure network and marketing efforts. Led by a new investor, Colorado-based Cornerstone Ventures, LP, this second round of funding included original investors Matthew G. Norton and Granite Ventures.
NEWS FROM MONDAY 6/10
NEW YORK — -Broadview Networks, a network-based electronically integrated communications provider (e-ICP), announced today that it has completed an additional $40 million plus round of equity financing through a well-established group of venture investors. Investors in this round include Baker Capital, ComVentures, New Enterprise Associates, Lightspeed Venture Partners and TIAA-CREF.
GREENWICH, CT — General Atlantic Partners LLC today announced that Abhay Havaldar has joined the firm as a principal. Prior to joining General Atlantic, Havaldar was a co-founder and partner of ConnectCapital, a private investment group headquartered in Mumbai and New York, focusing on technology companies that are active in India. Before joining ConnectCapital in 2000, Havaldar was a partner at Draper International, where he played a major role in building one of India’s pioneering early-stage venture firms. At Draper, he helped build a portfolio of twenty companies and was involved in Draper’s investments in Rediff.com, Selectica and Unimobile, among others. He serves on the board of directors of a number of Indian technology companies, including Geometric Software, lexsite.com, Rediff.com and Selectica India.
SAN FRANCISCO — Walden International, a leading global venture capital firm, today announced the appointment of Dr. Jack Q. Gao as general partner and managing director of its China operations. Dr. Gao has over 14 years of software industry experience and management expertise, having worked for a number of multinational software companies. Most recently he was president and general manager of Microsoft (China) Co., Ltd. in-charge of strategic business development, marketing and sales, government and public relations, and Microsoft’s overall business operations in China.
CARLSBAD, CA — Technology Visions Group Inc. (OTC Bulletin Board: TVGR) announced today that it has agreed to terminate its investment banking and consulting relationship with New York-based private equity investment funds, AJW Partners, LLC, New Millennium Capital Partners II, LLC, and The N.I.R. Group. In conjunction with the termination of the relationship, the Company’s management and shareholders have agreed to buy out the remainder of the debenture by late August 2002. The buyout will effectively terminate the existing relationship in total.
FRAMINGHAM, MA — Nauticus Networks Inc., a developer of data center switching solutions, today announced that the company has completed its Series B funding by securing an additional $6 million from Advent International, one of the world’s largest private equity firms. This latest investment brings the total funding to more than $38 million since the company’s founding in October 2000.
MENLO PARK, CA & SEOUL, SOUTH, KOREA — Today Nokia Venture Partners, a leading global venture capital firm focused on early-stage mobile technology companies, expanded its global presence with the opening of its office in Seoul and announced a $5 million investment in WiderThan.com, a wireless Internet solutions developer and services provider based in Korea. This move highlights the strategic importance of the growing mobile market in Asia Pacific and Nokia Venture Partners’ commitment to this market. (Private Equity Week subscribers, click here).
MOUNTAIN VIEW, CA — Kasenna, a leading developer of software for video-on-demand (VOD), announced today the closing of its Series B round of financing raising over $22 million. Led by Dresdner Kleinwort Wasserstein, this funding round included additional new investors: The Entrepreneurs’ Fund, LP; CIR Ventures (part of the De Benedetti Group), and Sun Microsystems. Returning investors include SGI, U.S. Venture Partners, and Alloy Ventures, with the latter two increasing their pro rata equity stake over the first venture round. The funding will be used to spearhead the continued development and marketing of the company’s software products for video management, distribution and delivery over IP, cable and wireless networks.
VIENNA, VA — In anticipation of launching the industry’s first commercial ultra-wideband product under the new Federal Communications Commission (FCC) rules, XtremeSpectrum today announced it has completed a $12 million round of venture funding from an expanded investor base, representing both new and existing investors. New investors in this third round of funding include POD Holding, a large Scandinavian venture fund. All previous investors, including Cisco Systems; Motorola, Inc.; Alliance Technology Ventures; Texas Instruments’ venture capital initiative, Granite Ventures; and Novak Biddle Venture Partners, also participated in this round at pro-rata levels or higher.
LONDON — CellGlide, a leading provider of innovative mobile traffic shaping solutions, today announced that it has secured $10 million in a financing round led by TLCom Capital Partners. TLCom partner Giuseppe Curatolo will be joining CellGlide’s board of directors. CellGlide is already venture capital backed by Magnum Communications Fund, a leading VC fund investing exclusively in cutting-edge telecom technologies. The leading investors in Magnum include some of Europe’s leading operators: Deutsche Telekom, KPN, and Sonera. Sonera is also an independent shareholder in CellGlide.
WEST PALM BEACH, FL — ScriptRx Inc., a national provider of interactive healthcare systems, recently secured $2 million in venture capital funding from CrossBow Ventures to accelerate the company’s ability to meet the demand that has developed for ScriptRx Systems in emergency rooms nationwide. Additionally, the capital will be used to expand the services to include computerized physician order entry and charting.
The ScriptRx System offers physician-friendly, touch screen computer systems that incorporate a fingerprint scanner and laser printer. The system provides emergency department physicians with fast, secure computerized prescription-writing and printed discharge instructions as well as access to clinical and pharmacological reference materials.
MUNICH, GERMANY — ¾ Curacyte AG (Munich and Jena, Germany) has announced its merger with VitaResc Biotech AG (Munich, Germany and Durham NC, USA). Henceforth the company will operate under the Curacyte name, led by Curacyte’s current management team, Dr. Helmut Giersiefen (CEO) and Dr. Andreas Zaby (CFO).
As part of the merger, lead investors from both companies committed €5.5 M ($5 M) demonstrating their commitment to the company. In addition, a further €1.5 M ($1.4 M) has been committed in the form of a silent partnership. The terms of the transaction were not disclosed. This brings total funds raised to date by the combined companies to approximately €37 M ($33 M). The international investor base now includes Techno Venture Management, The Stroh Companies Inc. and NIB Capital. The company has stated its intention to enter a formal Series C fund raising within the next 12 months.
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