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PE Week Wire — 9/21/06

Warner Chilcott, a Rockaway, N.J.-based drug company focused on women's healthcare and dermatology, priced 70.6 million common shares at $15 per share (below $17-$19 range), for an IPO take of approximately $1.06 billion. It plans to trade on the Nasdaq under ticker symbol WCRX, while Goldman Sachs served as lead underwriter. The company was taken private in early 2005 for $3.1 billion by a private equity consortium that included Bain Capital, DLJ Merchant Banking Partners, JPMorgan Partners and Thomas H. Lee Partners.

Lone Star Funds has acquired B-Line LLC, a Seattle-based specialty finance firm, from Golden Gate Capital. No financial terms were disclosed.

Knight Energy Group LLC has paid $165 million to acquire a series of producing and undeveloped oil and gas properties, located primarily in Oklahoma and Texas. Financing for the deal was led by Greenhill Capital Partners, with Reservoir Capital Partners and RCH Energy Opportunity Fund also participating. 

    VC Deals

Ideal Image Development Inc., a Tampa, Fla.-based provider of laser hair removal services, has raised $16 million in private equity and debt financing. H.I.G. Capital led the equity tranche, while Orix Venture Finance provided the debt.

MODASolutions Inc., a Kanata, Ontario-based provider of alternative payment solutions, has raised US$11 million in second-round funding. Celtic House Venture Partners and Propulsion Ventures co-led the deal, and were joined by return backers BDC Venture Capital and the Ottawa Angel Alliance.

Seventymm Services Pty Ltd., an Bangalore, India-based online movie rental company, has raised $7 million in second-round funding. Matrix Partners led the deal, and was joined by return backer Draper Fisher Jurvetson.

Packetmotion Inc., a San Jose, Calif.-based provider of enterprise security software, has raised $5.97 million in Series B-1 funding, according to a regulatory filing. Return backers include Onset Venture Partners, Intel Capital and Mohr, Davidow Ventures.

Vignani Technologies Pvt Ltd., an India-based engineering services provider, has raised $4 million in first-round funding from Intel Capital, Jafco and KT Ventures.

Abla-Tx Inc., a Boulder, Colo.-based developer of software-based algorithms to monitor thermal ablation of tumors, has secured $2 million of a $2.5 million Series B round, according to a regulatory filing. Backers include Flagship Ventures and Sequel Venture Partners.

    Buyout Deals

Morgenthaler Partners has acquired Mark Andy Inc. from Dover Corp. (NYSE: DOV) for an undisclosed amount. Madison Capital Funding led the leverage tranche, with Hancock Capital Management also participating. Mark Andy is a St. Louis-based manufacturer of narrow-web printing equipment.

Incisive Media PLC, a listed UK-based business information publisher, is recommending a Gbp199 million cash offer from Apax Partners.

Emigrant Capital has agreed to acquire Next Proteins Inc.'s protein bar business, in partnership with the business' management. No financial terms were disclosed.

K&K Iron Works Inc., a Chicago-based engineering firm that fabricates and erects structural steel components, has raised an undisclosed amount of private equity funding from H.I.G. Capital and company founders.

    PE-Backed IPOs

Riverbed Technology Inc., a San Francisco-based provider of wide area network performance software, priced 8.4 million common shares at $9.75 per share (above $7-$8.50 range), for an IPO take of $81.9 million. It plans to trade on the Nasdaq under ticker symbol RVBD, while Goldman Sachs served as lead underwriter. The company had raised $56.6 million in VC funding since its 2002 inception, from firms like Accel Partners, Lightspeed Venture Partners, UT Partners, Meritech Capital Partners and Goldman Sachs.

Home Diagnostics Inc., a Ft. Lauderdale, Fla.-based provider of blood glucose monitoring systems and disposable supplies for diabetics, priced 6.6 million common shares at $12 per share (below $14-$16 range), for an IPO take of approximately $79.19 million. It plans to trade on the Nasdaq under ticker symbol HDIX, while JPMorgan and Piper Jaffray served as co-lead underwriters. Shareholders include Albion Investors and Medical Growth Partners.

Paradigm Ltd., a Cayman Islands-based provider of enterprise software for the global oil and gas exploration and production market, has filed to raise $200 million via an IPO of common stock. It plans to trade on the Nasdaq, with Lehman Brothers, UBS and Banc of America Securities serving as co-lead underwriters. Fox Paine holds a 92.3% pre-IPO position.

Miasole Inc., a San Jose, Calif.-based manufacturer of thin-film solar cells, hopes to price an IPO within 12 to 18 months, according to a CNet interview with company CEO David Pearce. The company has raised over $21 million in VC funding from firms like Kleiner Perkins Caufield & Byers, VantagePoint Venture Partners, Firelake Strategic Technology Fund, Garage Technology Ventures and Nippon Kouatsu Electric Company.

    PE-Backed M&A

SecureWorks Inc. of Atlanta and LURHQ Corp. of Myrtle Beach, S.C. of have merged, in order to form a single provider of managed information security services. No financial terms were disclosed. SecureWorks has raised around $30 million in VC funding from firms like Alliance Technology Ventures, GE Equity, Mellon Ventures, Noro-Moseley Partners and SBK Capital. LURHQ was backed by Frontier Capital.

Central American Capital Group has acquired a 49.9% stake in Amnet Telecommunications Holdings Ltd., which provides cable television and broadband Internet access in El Salvador, Costa Rica and Honduras. No financial terms were disclosed. CACG was formed as an acquisition platform by MesoAmerica of Costa Rica, with the Kazma family participating on the Amnet deal.

Pentaho Corp., an Orlando, Fla.-based provider of open-source business intelligence software, has acquired the Weka open source data mining project developed by the University of Waikato in New Zealand. No financial terms were disclosed. Pentaho has raised $13 million in VC funding from firms like Index Ventures and New Enterprise Associates.

Frontier Drilling, a Houston, Texas-based provider of offshore drilling and production services for the oil industry, has agreed to acquire and refurbish the Transocean Explorer, a second-generation semisubmersible drilling rig currently capable of drilling in water depths of up to 1,250 feet. The deal is partially financed via a $27 million private equity infusion from Avista Capital Partners.

    PE Exits

Telco Systems, a Foxboro, Mass.-based subsidiary of BATM Advanced Communications (London: BVC), has acquired the assets of Critical Telecom Corp., an Ottawa-based developer of broadband enabling platforms for IP-based access networks. No financial terms were disclosed. Critical Telecom has raised VC funding from BDC Venture Capital, Crown Ventures, Tellus Ventures and VenGrowth Capital.

CDW Corp. (Nasdaq: CDWC) has agreed to acquire Berbee Information Networks Corp., a Madison, Wis.-based independent IT solution provider, for $175 million in cash. Berbee had raised $17.5 million in 2000 from One Equity Partners and Baird Capital Partners, with Baird still listing Berbee as a portfolio company.

    Firms & Funds

CVC Capital Partners is planning to raise