PE Week Wire — Friday 7/11


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Xenogen Corp., an Alameda, Calif.-based company focused on real-time in-vivo imaging, has raised $22 million in Series AA financing. The deal was led by new investor Abingworth Management, and included some undisclosed existing investors. The company – which filed to go public in 2001 but withdrew the request later that year – has now raised over $100 million in venture capital. Valuation information is tricky given the round’s Series AA classification. It’s previous deal was a $26 million Series G deal in early 2001 at a post-money valuation of over $130 million, but its 1998 Series A deal was worth over $8 million at a post-money mark of around $12.5 million.

Lexington Partners has held a $2 billion final close on its fifth private equity secondaries fund, according to multiple press reports. The New York-based firm’s previous fund was a $606 million vehicle closed in 2000.

VocalData Inc., a Richardson, Texas-based application developer of hosted IP telephony services has secured $12.5 million in Series C funding. Austin Ventures led the deal, and was joined by fellow return backers Trinity Ventures, Seed Capital Partners, Hickory Ventures and JP Morgan Partners. VocalData now has raised $60 million in venture capital since inception, including a $32 million Series B deal in late 2000 at a post-money valuation of $93 million. It doers not currently plan to embark on any additional private financing endeavors.

Commerce One Inc. (Nasdaq: CMRC) received a $10 million investment from private equity firm BayStar Capital Management LLC.

Appairent Technologies Inc., a Rochester, N.Y.-based provider of wireless multimedia semiconductor solutions for consumer electronic and PC products, has received an undisclosed investment from Motorola Ventures and the Monroe Fund managed by the Trillium Group.

Oregon legislators yesterday passed House Bill 3613, which requires the Oregon Investment Council to invest $100 million into Oregon-based businesses over the next five years. The Associated Press is reporting that Governor Ted Kulongoski is expected to sign the bill into law.

Dow Jones is reporting that the The European Union Commission has approved the buyout of Barclay PLC‘s fire protection unit Minimax Holdings by Investcorp Financial and Investment Services. Terms of the deal have not been disclosed.

TSJ Media is reporting that 23 U.S.-based companies founded by Indians raised a total of $210 million in venture capital during the second quarter of 2003.

Private Equity Online is reporting that private equity secondaries firm Lexington Partners has held a $2 billion final close on the firm’s fifth fund. The original target had been $2.5 billion when fund-raising was launched in late 2001, but ultimately cut the target down.

Asian Venture Capital Journal (which has no relation to Venture Economics’ Venture Capital Journal or European Venture Capital Journal) is reporting that Asian private equity firms raised $1.5 billion in fund capital during the first half of 2003.
NEWS FROM THURSDAY 7/10

Immunicon Corp., a Huntingdon Valley, Pa.-based biomedical company, has raised $24.75 million in Series G financing. Investors included TL Ventures, Claneil Enterprises Inc., Johnson & Johnson Development Corp., Canaan Partners, Anthem Capital, Burrill & Co., Foundation Medical Partners, Wheatley Partners, MDS Capital Corporation of Canada, The Cleveland Clinic Foundation, equity4Life and MedCapital Investments. The company has now raised $86 million in equity (plus $14 million in debt), including a $29 million Series F deal in late 2001 at a post-money valuation of $85 million.

Thomas Middleton has joined The Blackstone Group as a senior managing director of mergers and acquisitions. Middleton has spent the past year running his own consulting firm, which helped advise Quest communications on the sale of its directories business. Before that, he spent many years at Merrill Lynch as head of its global communications group and vice chairman of investment banking.

Nike Inc. has agreed to buy rival athletic shoemaker Converse Inc. for $305 million. Converse is majority owned by private equity firm Perseus, which bought the company out of bankruptcy court in 2001 for just over $117 million. No word yet on if the Nike purchase will be in stock, cash or a combination of the two.

Ikanos Communications Inc., a Fremont, Calif.-based provider of broadband infrastructure technologies, has closed out its Series D round with $33 million at a post-money valuation of around $66 million. The company had announced a $30 million close on the deal in February, but recently received a bit of extra funding from TL Ventures.

Cyberkinetics Inc., a Providence, R.I.-based company focused on neurotechnology, has closed its Series A financing with an additional $4.3 million from Oxford BioScience Partners, Global Life Science Ventures and NeuroVentures Capital LLC. This brings the total of Cyberkinetics’ Series A financing to $9.3 million with earlier investments made by Oxford Bioscience and George Hatsopoulos, founder of Thermo Electron Corp. The entire deal gives Cyberkinetics a post-money valuation of approximately $15.3 million.

ITU Ventures, a Los Angeles-based venture firm that invests in technology businesses emerging from research universities, has raised $36 million for its third fund. The West Coast-focused vehicle had been marketed with a $40 million target capitalization, and received a cornerstone commitment from the Colorado Public Employees’ Retirement Association.

Tripwire Inc., a Portland, Ore.-based developer of integrity assurance solutions, has raised $8.3 million in Series D funding. BA Venture Partners led the deal, and was joined by return backers Advanced Technology Ventures, Bessemer Venture Partners, ClearLight Partners, Comcast Interactive Capital, Garage Technology Ventures, Institutional Venture Partners and Visa International Service Association.

Duke Street Capital has acquired Galaxie, a Brest, France-based budget hotel operator. Bank of Scotland acted as lead-arranger and underwriter of the acquisition’s debt facilities. Various press reports put the final price tag at around €200 million (approx. $227 million).

InTouch Health Inc. of Santa Barbara, Calif. has secured $1 million in new funding from InvestCare Partners LP, a health-care private equity fund managed by Beringea LLC.

Henry Wong has been promoted to the position of principal at Novus Ventures. He was previously a senior associate, after having joined Novus as part of its 2002 merger with Artemis Ventures, where he had been a director.

The Deal is reporting that a new $100 million nanotech fund was recently launched by Pearl Chin, a nanotech researcher and management consultant who currently works as a managing director for Cientifica.

NEWS FROM THURSDAY 7/9

ZettaCom, a Santa Clara, Calif.-based provider of switch fabric and traffic management semiconductor solutions, has raised $19.2 million in Series C funding. Norwest Venture Partners and Investcorp co-led the round, and were joined by Banc of America Securities, China Development Industrial Bank, Crimson Ventures, Development Bank of Singapore, Granite Global Ventures, Hotung Capital, Infineon Ventures, J. & W. Seligman & Co., JPMorgan Partners, k1 Ventures, Unipac, United Investments, U.S. Bancorp Piper Jaffray, Venrock Associates and Vertex Management. The company now has raised $77.7 million since its 1999 inception.

Harvest Partners Inc. and Deutsche Beteiligungs AG (DBAG), have closed their previously announced acquisition of the Casco Impregnated Papers (CIP) business from Netherlands-based Akzo Nobel N.V. for €112 million (approx. $129 million). CIP is a Dusseldorf, Germany-based supplier of surfacing materials for applications in the furniture, flooring, woodworking and automotive industries It recorded 2002 annual sales of €265 million (approx. $315 million).

Affinnova Inc., a Cambridge, Mass.-based provider of product design, development and testing solutions, has completed a $6 million Series B round of financing led by existing investor Flagship Ventures.

ImpactRx Inc., a Mount Laurel, N.J.-based pharmaceutical promotion company, has secured $3 million in additional financing from Merck Capital Ventures. The investment is a second tranche of the company’s Series C round, which was led by Mediphase Venture Partners and Oxford Bioscience Partners and closed in May 2002.

Echopass Corp., a Salt Lake City-based provider of hosted contact interaction solutions, has secured $4 million in a new funding round led by new investor Cardinal Venture Capital and supported by existing investors New Enterprise Associates, Canaan Partners and Outlook Ventures. As part of the transaction, Chris Hadsell of Cardinal Venture Capital will join the Echopass board of directors. The company now has raised more than $40 million since its 1998 founding.

Talisma Corp., a Kirkland, Wash.-based provider of customer lifecycle management solutions, has raised $5 million in new funding led by existing backer Oak Investment Partners.

InfoVista SA (Nasdaq: INFOVISTA) has agreed to acquire the application performance monitoring technology assets of Atesto Technologies Inc., a Fremont, Calif.-based company that will subsequently discontinue operations. No deal terms were disclosed. Atesto had raised around $18 million in venture capital, including a $15 million Series B round in early 2001 at a post-money valuation of over $31 million. Investors included Argus capital Group, Draper Richards, Labrador Ventures, Sprout Group and Staenberg Venture Partners.

F. Scott Tuck has been named president of Pacific Corporate Group, following a stint as chairman and CEO of Montgomery Asset Management. Piramed Ltd., a London-based startup focused on anticancer therapeutics, has raised $13.2 million in Series A funding from JPMorgan Partners and Merlin Biosciences.

Michael Doyle has joined JLL Partners as a senior vice president in charge of distressed securities investing. He most recently served as managing director at Nomura Holding Inc., where he was responsible for the overall management of Nomura’s proprietary distressed and special situations high yield investing portfolio.

George Fellows, former president and CEO of Revlon Inc., has joined Investcorp as an advisory director.

Hermes Pensions Management Ltd. has added a pair of professionals to its private equity team. First up is Gillian Brown, a former director with Merrill Lynch Investment Managers, who joins UK-based Hermes as a director. Also signing on is Shane Feeney, a former pro at Morgan Grenfell Private Equity, who joins Hermes as an investment director.

Datacom Wireless, a Laval, Quebec-based provider of wireless telematics solutions, has raised Cdn$8.1 million (approx. $5.9 million) in second-round venture funding. New investors included VIMAC Ventures and Investissement Desjardins, while return backers included Solidarity Fund and I.U.GO Ventures.

JLL Partners has closed its Cdn$105 million (approx. $76.8 million) purchase of Mosaic Sales Solutions Corp. through a Section 363 bankruptcy sales process from Mosaic Group Inc., a Toronto-based provider of marketing services.

Dow Jones is reporting that Indian pharmaceutical company Lupin Ltd. will soon sell 12.55% of its equity to Newbridge Capital for 1.27 billion rupees (approx. $27 million).

The Wall Street Journal is reporting that five former Polaroid employees have sued the company and majority-owner One Equity Partners — the private equity arm of Bank One Corp. which bought Polaroid out of bankruptcy last year – for wrongful dismissal. Specifically, the quintet claims that part of One Equity’s purchase deal specified that Polaroid fire all employees who were receiving long-term disability. Each of the five was receiving such benefits, for such maladies as spinal injury, lupus and cancer. No comment yet from Polaroid or One Equity.
NEWS FROM TUESDAY 7/8

Bacchus Vascular Inc., a Santa Clara, Calif.-based developer of catheter-based devices for blood clot removal, has raised $25 million in Series D funding. Warburg Pincus led the round, and was joined by return backers DeNovo Ventures and The Vertical Group. The company now has raised approximately $39 million in venture capital since its 199 founding, including a $5.7 million round in late 2001 at a post-money valuation of over $25 million. In related news, Bacchus Vascular has hired Gary Burbach as its new CEO. He most recently served as CEO of Royal Phillips Electronics’ nuclear medicine division.

Trevor Kienzle has joined Newbury Ventures as a general partner. He had spent the past six years with GE Equity, where he most recently served as co-head of the firm’s software team.

Digital Fuel Technologies Inc., a San Mateo, Calif.-based developer of a platform for real-time management and automation of IT and business services, has secured $8 million in Series C funding. New investors Benchmark Capital and Sigma Partners joined return backers Israel Seed Partners and Apropos IT Ventures on the deal. As part of the financing agreement, Mark Kremer of Benchmark Capital and Peter Solvik of Sigma Partners, will join Digital Fuel’s board of directors.

Elixent Ltd., a Bristol, UK-based reconfigurable semiconductor IP company, has raised $10 million in second-round funding. The deal was led by new investors GIMV and NIF Ventures, with founding investor 3i fully participating.

Northface University, a Salt Lake City-based postsecondary institution for software developers, has received a $13 million Series B investment led by Great Hill Partners.

NWP Services Corp., a Santa Ana, Calif.-based provider of services to the multifamily real estate and utility industries, has received $15 million in new funding led by Crosslink Capital. Existing investors Sycamore Ventures and Landmark Partners also participated.

OnCURE Medical Corp., a Newport Beach, Calif.-based owner and operation of 12 radiation centers, has raised $12 million to fund acquisitions and a capital restructuring. Investors on the equity and subordinated debt deal included MedEquity Capital and Halpern, Denny & Co.

Thomas Roberts, a managing partner with Boston-based Summit Partners, has been named president of the New England Venture Capital Association (NEVCA). Roberts has served as a NEVCA Director since 1998, and will serve a two-year presidential term.

Ranjan Chak has joined Oak Investment Partners as a venture partner. He will be focused on helping Oak’s portfolio companies execute successful strategies for tapping offshore talent in India. Chak most recently served as vice president of Asia Pacific Product Services at Oracle Corp., and was a significant player in the 1994 creation of Oracle’s first India Development Center.

iVivity Inc., an Atlanta-based provider of core components for the storage networking industry, has raised $13 million in new funding from existing investors LSI Logic, HIG Capital, Commonwealth Capital Ventures, Kinetic Ventures, Cordova Ventures and Bergman & Associates. In related news, the company named former Ricoh Silicon Valley CEO David Coombs as its new president and CEO.

Bionaut Pharmaceuticals Inc., a Cambridge, Mass.-based company focused on identifying drug side effects before the trial stage, has raised an additional $2.9 million in Series A funding. The total round now stands at $6.8 million, and includes investments from Collinson, Howe & Lennox and HealthCap Venture Capital.

Cast Iron Systems Inc., a Mountain View, Calif.-based maker of application integration hardware devices, has raised $8.3 million in new funding led by Sequoia Capital and Norwest Venture Partners. The company, which was formerly known as IronHide Corp., also announced the appointment of Fred Meyer as president and CEO. Meyer previously served as chief strategy officer from TIBCO.

Infowave Software Inc. has acquired HiddenMind Technology LLC, a Cary, N.C.-based company that had received over $40 million in venture capital from investors like Warburg Pincus and BEA Systems.

Flarion Technologies Inc., a Bedminster, N.J.-based provider of wireless broadband systems for data and voice services, has received an undisclosed investment from the T-Mobile Venture Fund.

TechTarget has acquired Information Security magazine from TruSecure Corp. for an undisclosed amount. Both companies are venture-backed.

The Globe and Mail is reporting that the Ontario Municipal Employees Retirement System (OMERS) is creating a private equity fund-of-funds whereby OMERS would invest money into Canadian companies for non-Canadian pension funds. The new vehicle is targeted at Cdn$300 million, and also would include some OMERS capital.
NEWS FROM MONDAY 7/7
Buyouts is reporting that a whopping $33.2 billion was raised via the LBO market during the first half of 2003. Paid Buyouts subscribers can read about this — plus Q2 fund-raising data – in today’s print edition or at www.BuyoutsNewsletter.com.

The Washington State Investment Board has published firm-by-firm private equity performance data (as of 12/31/02) on its Web site. The group previously had a policy of disclosing such materials upon request, but now it is available just by going to: http://www.sib.wa.gov/assets/irrreport.pdf.  

Cabot Square Capital Ltd., a London-based private equity firm, has closed its second fund – named CS Capital Partners II LP – at €284 million. Commitments to the Fund have exceeded the target of €250 million. The Cabot Square group was formed in 1996 and is managed by John Van Deventer, formerly head of European Structured Finance at Goldman Sachs, and James Clark, who held a similar position at Lehman Brothers.

Fidesic Corp., a Belleveue, Wash.-based provider of payables, receivables and payment financial process automation for the mid-market, has raised over $3 million in new funding led by Voyager Capital, with participation from Northwest Venture Associates.

Alnylam Pharmaceuticals Inc. and Ribopharma AG, a pair of venture-backed companies specializing in therapeutic RNA interference, announced today that they have merged. Concurrent with the merger, the combined entity secured an additional $24.6 million in private equity financing from Polaris Venture Partners, Abingworth Management, Cardinal Partners, Atlas Venture and ARCH Venture Partners. The company will have its global headquarters in Cambridge, Mass., while former Alnylam CEO John Maraganore will be president and CEO of the merged company.

Lincolnshire Management Inc. has sold a controlling interest in Riddell Sports Group Inc. to Fenway Partners Inc. The entire transaction is valued at around $100 million.

The British Venture Capital Association has released new Reporting & Valuation Guidelines aimed at greater transparency and consistency in the way private equity investments are valued and reported. For more info, go to: http://www.bvca.co.uk/

GoldK, a Waltham, Mass.-based provider of Web services for retirement plan operators, has raised $7 million in Series C funding. Terms are still being finalized, but the deal will include investments from return backers Lazard Technology Partners and TH Lee Putnam Ventures.

Broadlane Inc., a San Francisco-based provider of business services to the health-care industry, has raised $50 million in a debt and equity financing. The package includes lead investor Falcon Investment Advisors LLC, alongside General Motors Investment Management, NIB Capital Private Equity and Grandview Capital Management LLC. Approximately 80% of the proceeds from the offering were used to repay Broadlane’s current line of credit and repurchase shares to reduce Tenet Healthcare Corp.’s ownership to less than 50% (below 40% on a fully diluted basis). The financing was completed on June 27. Credit Suisse First Boston acted as placement agent for the company.

PamGene International BV, a Dutch biotech company, has raised €10 million in second-round venture funding. LCF Rothschild Venture Partners led the deal, and was joined by return backers Alta Partners, GIMV and LSP.

Lillian Vernon Corp. (Amex: LVC ) has completed the merger transaction approved by its stockholders on June 23rd, whereby the company was acquired by private equity firm Ripplewood Holdings LLC. Trading in the company’s common stock has officially ended. Under the terms of the merger, stockholders of Lillian Vernon will now receive $7.25 in cash for each share.

Reuters is reporting that Reid Perper has left his managing director post with CSFB‘s European private equity group.

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