PE Week Wire — 8/10/06

MTV Networks, a division of Viacom Inc. (NYSE: VIA), has agreed to acquire Atom Entertainment Inc., a San Francisco-based online provider of games, short films and video. The deal is valued at $200 million, and is expected to close later this quarter. Atom and its predecessors raised VC backing from firms like Sequoia Capital, Arts Alliance Advisors, Intel Capital, Macromedia Ventures and Transcosmos.

Intel Corp. has agreed to sell its media and signaling business to Eicon Networks Corp. of Montreal. No pricing terms were disclosed for the deal, which was financed via a private placement from Investcorp Technology Ventures and Tennenbaum Capital Partners. Investcorp served as deal lead, with Tennenbaum providing both equity and a credit facility.

Scott Carter and Alexander Harrison have joined Sequoia Capital as partners focused on the software and services sectors. They previously were with Summit Partners.

    VC Deals

Mangrove Systems Inc., a Wallingford, Conn.-based provider of metro and access solutions to enable end-to-end MPLS, has secured $13.27 million of $21.79 million in third-round funding. Return backers include Bessemer Venture Partners, Columbia Capital and Highland Capital Partners. Mangrove has raised over $70 million in total VC funding since its 2002 inception.

Arisaph Pharmaceuticals Inc., a Boston-based drug company focused on diabetes, cancer and cardiovascular disease, has closed the second $8 million tranche of a $16 million funding round. Both tranches were provided by Kos Pharmaceuticals Inc. (Nasdaq: KOSP) and 2004 Oikos Investment Partners. Inc., a Palo Alto, Calif.-based provider of a user-generated online contest system, has raised $6.78 million in VC funding from firms like Sutter Hill Ventures, Trinity Ventures and Stanford University.

Microchip Biotechnologies Inc., a Dublin, Calif.-based developer of microfluidic and nanofluidic technologies, has raised $3 million in Series A funding led by In-Q-Tel, according to a regulatory filing.

Primorigen Biosciences LLC, a Madison, Wis.-based developer of tool kits for cell therapy research, has raised $2.45 million in new VC funding. Louisiana Fund 1 provided $1 million, while the remainder came from undisclosed out-of-state backers.

JiGrahak Mobility Solutions Ltd., an India-based provider of mobile ecommerce software solutions, has raised $2.2 million from Helion Venture Partners.

    Buyout Deals


Freeman Spogli & Co. has acquired Mattress Giant Corp., a Dallas, Texas-based specialty bedding retailer. Sellers included Banc of America Capital Investors, Richland Ventures, First Avenue Partners and Nelson Capital Partners. No financial terms were disclosed. Edgeview Partners represented Mattress Giant on the deal.

ITV PLC, a UK-based broadcaster, paid Lazard, Lovells and KPMG