PE Week Wire — 8/28/06

Kinder Morgan Inc. (NYSE: KMI) has agreed to be acquired for $107.50 per share, or a total transaction value of around $22 billion. Kinder Morgan received a $100 million offer back in May, before which its stock had been trading at $84.41 per share. The buying consortium continues to include GS Capital Partners, AIG, The Carlyle Group and Riverstone Holdings. It now also includes Kinder Morgan chairman and CEO Richard Kinder, co-founder Bill Morgan, board members Fayez Sarofim and Mike Morgan and other management members. Leverage will be provided by Goldman Sachs Credit Partners, Citigroup Global Market, Deutsche Bank Securities, Wachovia Securities and Merrill Lynch, Pierce, Fenner & Smith.

Zogenix Inc., a drug company focused on CNS disorders and pain, has raised $60 million in Series A funding. Clarus Ventures and Domain Associates co-led the deal, and were joined by BA Venture Partners, Thomas, McNerney & Partners and Life Science Angels. Zogenix has offices in both San Diego and Hayward, Calif. In related news, Zogenix has paid $4 million to acquire a needle-free delivery system (Intraject) from Aradigm (Nasdaq: ARDM). The acquisition could include future milestone payments.

Mylan Laboratories Inc. (NYSE: MYL) has agreed to acquire up to 71.5% of Indian drug-maker Matrix Laboratories Ltd. (Mumbai: 524794), in a deal that could be worth as much as $736 million. Under terms of the agreement, Mylan will first acquire 51.5% of outstanding Matrix shares from holders like Temasek Holdings and Newbridge Capital. It then will make an “open offer” to acquire an additional 20% stake from remaining Matrix shareholders. Matrix will remain a listed company in India, and will continue to operate independently.

    VC Deals

Trapeze Networks Inc., a Pleasanton, Calif.-based provider of WLAN infrastructure solutions, announced that it has raised $30 million in Series D funding. The deal included Juniper Networks and other undisclosed network vendors. Return backers include Accel Partners, Redpoint Ventures, Oak Investment Partners, Motorola, Castile Ventures and DAG Ventures.

Zend Technologies Inc., a Cupertino, Calif.-based PHP software company, has raised $20 million in Series D funding. Greylock Partners led the deal, and was joined by return backers Azure Capital Partners, Index Ventures, Intel Capital, Platinum Venture Capital, SAP Ventures and Walden Israel Venture Capital — are also participating in the Series D round.

Magen BioSciences Inc., a Cambridge, Mass.-based biotech company focused on the health and appearance of human skin, has raised $15.4 million in new Series A funding. The company had raised $1.84 million in seed funding earlier this year at a $4.34 million post-money valuation. Highland Capital Partners led the new tranche, and was joined by IDG Ventures Boston, GVT Financial and return backers Alexandria Real Estate, Arch Venture Partners, Lux Capital, TVM Capital and Venrock Associates.

Neurosonix Ltd., an Israel-based developer of non-invasive embolic protection technology and devices for use in cardiac surgery and cath labs, has raised $12 million in new VC funding. Elron Electronic Industries Ltd. led the deal with a $5 million commitment, in exchange for an 18% stake. Other participants included Evergreen Venture Partners and return backers Peregrine Ventures, Ofer Hi-Tech and the Yozma Group.

Travel Meta Search Pte Ltd., a Singapore-based meta-search engine for European and Asian travelers, has raised