PE Week Wire — Friday 8/8


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SMaL Camera Technologies Inc., a Cambridge, Mass.-based developer of electronic imaging solutions, has raised $13.5 million in Series C financing. Carlyle Venture Partners led the deal, and was joined by fellow new investor Wasserstein Venture Capital. Other company backers include Stata Venture Partners and the Yokogawa Electric Co. SMaL was co-founded and launched in 1999 by electronic imaging experts at the Massachusetts Institute of Technology, and since has raised over $20 million in venture funding.

Tim Connors has been promoted to the position of General Partner at U.S. Venture Partners. Connors joined the Menlo Park, Calif.-based firm as an Associate in June 2001, after having spent three years with Sequoia Capital.

Cambrex Corp. (NYSE: CMB) has agreed to sell its Rutherford Chemicals business for approximately $64 million in cash, subject to closing adjustments and transaction fees. Arsenal Capital Partners will purchase the assets and assume certain liabilities of Rutherford’s U.S. operations and purchase the stock of the UK-based Rutherford subsidiary Seal Sands Chemicals Ltd.. The sale is expected to close in approximately 45 to 65 days.

Thomas Foley, chairman and founder of Greenwich, Conn.-based private equity firm The NTC Group, has been named Director of Private Sector Development in Iraq. Foley is a longtime friend of President Bush, and served as Connecticut chairman for Bush’s 2000 campaign finance committee.

MedCases Inc., a Philadelphia-based medical education provider, has merged with I.C. Axon Inc., a Montreal-based e-learning solutions provider. The combined company also has raised an undisclosed amount of new funding led by Merck Capital Ventures.

Russ Ricci has been named Chief Medical and Strategy Officer at HealthStar Communications. Ricci most recently served as general manager of IBM’s Healthcare Industry, before which he was president of the New Health Ventures at Blue Cross and Blue Shield of Massachusetts ,where he led corporate venture capital and new technology initiatives.

Genicom LP and Tally AG have agreed to combine operations and create a new company, TallyGenicom. The newly integrated firm expects annualized revenue to exceed $200 million this year, and focus exclusively on providing printers, consumables, printer parts and service. Arsenal Capital Partners, the current majority owner of Genicom, provided equity capital for the transaction and CapitalSource Finance LLC provided senior debt financing. Additional deal terms were not disclosed.

W.M. van den Goorbergh has been appointed to the supervisory board of NIB Capital NV. He worked at Rabobank Nederland from 1980 until 2002.

Zenodata Corp., a Louisville, Colo.-based operator of an interactive land title database, in June raised $12.98 million of Series C financing (first reported in the 7/7 issue of PE Week). Investors included Austin Ventures, New Enterprise Associates and Sequel Venture Partners.

PrivateEquityCentral.net is reporting that Bill Lenihan has been promoted to the position of Managing Director at San Francisco-based Fremont Partners. Lenihan joined the firm as a principal in 1998, before which he worked for Goldman Sachs Capital Partners.
NEWS FROM THURSDAY 8/7

CapitalSource Inc., a Chevy Chase, Md.-based commercial finance company, will begin trading on the NYSE today under the ticker symbol CSE. Last night, the company priced 21.3 million shares at $14.50 each, for a total IPO take of $308.85 million ($76.85 million of which is being sold by CapitalSource investors). CapitalSource holds the distinction of raising the largest-ever Series A round of venture financing: a $540 million closed in Q3 2000. Company backers include Fallaron Partners (32.2% pre-IPO ownership stake), Madison Dearborn Partners (18.5%), Highfields Capital Management (7.4%), Wachovia Capital Partners (7.4%), KB CapitalSource Ventures (1.5%) and Rosewood Capital (1.1%).

Ceyba Inc., an Ottawa -based maker of advanced optical network systems, has decided to shut its doors after failing to receive new venture funding. The company recently laid off its remaining 120 employees, which follows an earlier job cut of 73 employees. The company (which was once known as Solinet Systems) had raised $108 million in venture capital over two rounds of funding, including a $93 million infusion in mid-2001 at a post-money valuation of approximately $192 million. Investors included Alta Partners, Bessemer Venture Partners, New Enterprise Associates and Worldview Technology Partners.

University of Texas Investment Management Co. (UTIMCO) has released updated private equity fund performance data, with the information running through May 30, 2003. The files will be available later today in the protected section of www.PrivateEquityWeek.com .

Seranoa Networks Inc., a Boxborough, Mass.-based provider of IP edge concentrators, has raised $9 million in Series B funding. Institutional investors included Advent International, St. Paul Ventures, YankeeTek Ventures, FA Technology Ventures and Schoffstall Ventures. The company now has raised $25 million since its 2000 inception, including a $15.75 million Series A deal last year at a post-money valuation of approximately $29 million.

Bear Stearns Merchant Banking has formed a new group which will focus on identifying private equity investment opportunities in middle-market companies valued between $10 million and $100 million dollars. The venture is designed to target companies that fall below the investment parameters of Bear Stearns’ $1.5 billion Bear Stearns Merchant Banking Partners II fund. The group will be led by senior managing director Paul Lattanzio, who previously served as a managing director of TD Capital. Also joining from TD Capital is Joe Scharfenberger, who will serve as a vice president in the new venture.

Alien Technology Corp., a Morgan Hill, Calif.-based provider of radio frequency identification (RFID) solutions, has raised $38 million in Series F funding. Advanced Equities led the deal, and was joined by fellow new investors Lago Ventures Fund, Forsythe Technology, H&S Ventures and Manhattan Associates Inc. Sixteen return backers also participated, including Sevin Rosen Funds, Rho Ventures, New Enterprise Associates, CMEA Ventures, First Analysis, Equitek, Digital Bandwidth and Dow Chemical. The company now has raised approximately $125 million since its 1999 inception, including a $19 million Series E deal (including $1.7 million of convertible securities) in 2001 at a post-money valuation of approximately $200 million.

Solicore Inc., a Lakeland, Fla.-based maker of solid polymer lithium-ion and advanced battery manufacturing systems, has held a $13 million first close on its Series B funding round. Draper Fisher Jurvetson led the deal, and was joined by fellow new investors Braemar Power and Communications Partners and Firelake Capital Management. Return backers OPG Ventures Inc. and Hydro Quebec CapiTech Inc. also participated. Solicore hopes to raise an additional $2 million before holding a final close, bringing the round total to $15 million. The company’s $7 million Series A deal closed in early 2001 at a post-money valuation of nearly $43 million.

Trusted Computer Solutions Inc., a Herndon, Va.-based supplier of information sharing technologies to the U.S. Department of Defense and the intelligence community, has raised $3 million in private financing from Novak Biddle Venture Partners.

HemoSense Inc., a Milipitas, Calif.-based developer of point-of-care blood coagulation monitoring systems, has raised $7.7 million in new venture funding. Investors included MPM Capital, Vanguard Venture Partners, MGVF III Ltd., GC Technology Fund LP and Dade Bering.

Guardian Media Group PLC has agreed to buy the remaining stake of Trader Media Group Ltd., a UK-based magazine publisher of which Guardian already owns 48 percent. The remaining 52% will be sold for approximately $950 million by private equity firm BC Partners Ltd. and Trader Media management.

Thomas McWilliams, a managing director with Citicorp Venture Capital, has resigned from his position as a director of Ergo Science Corp. (OTC BB: ERGO). He has been a director since September 1992, when Citicorp VC purchased Ergo Science convertible securities.

Patricia Greene has been named dean of the undergraduate program at Babson College. She is a longtime researcher of entrepreneurial issues, and most recently served as the Ewing Marion Kauffman/Missouri Chair in Entrepreneurial Leadership at the University of Missouri in Kansas City.

NEWS FROM WEDNESDAY 8/6

LightSand Communications, a Milipitas, Calif.-based developer of storage area network (SAN) gateway products, has raised $7 million in new venture capital funding from Baring Equity Partners Asia, Concord Venture Partners, Fremont Ventures and Genesis Partners Group. In addition, the company announced that it has acquired SANcastle Technologies Inc., an Irving, Texas-based maker of FCIP gateways and inter-fabric switch (AR/DAT) technology. SANcastle has raised over $27 million in venture capital funding, including a $22 million round in mid-2000 at a post-money valuation of $77 million. Investors included CIBC Oppenheimer & Co., Concord Ventures, Genesis Partners Group and Telegraph Hill Communications Partners.

CSMC Technologies Corp., a China-based chip wafer subsidiary of China Resources Logic Ltd., has raised $67 million in Series A venture funding. 3i Group and Crown Crystal Investments Ltd. co-led the round, and were joined by IFC, Templeton Asset Management and China Resources Logic.

Tonos Entertainment Inc., a Culver City, Calif.-based operator of an online music network (Tonos.com), is in the process of shutting down operations. The company had received $17 million in venture capital funding since its 1999 inception, including a $10 million second round in late 2000 at a post-money valuation of approximately $50 million. Investors included Mobius Venture Capital, Shockwave.com and Sequoia Capital.

Expand Networks Inc., a Roseland, N.J.-based provider of WAN optimization technology, has raised $9 millionin new venture funding. Tamir Fishman Ventures led the insider