PE Week Wire — 9/5/06

Flextronics International Ltd. (Nasdaq: FLEX) has completed the sale of its software development and solutions business to KKR (76%) and Sequoia Capital (9%). The deal values the unit at $900 million, with Flextronics retaining a 15% stake.

NYFIX Inc. (Pink Sheets: NYFX), a New York-based provider of technology solutions to the financial market, has agreed to sell $75 million in convertible preferred stock to Warburg Pincus. As part of the deal, Warburg Pincus entrepreneur-in-residence P. Howard Edelstein will become NYFIX's new CEO.

Ashmore Investment Management has raised $1.3 billion for its third fund focused on special situation opportunities in the emerging markets.


    VC Deals

Cilion, a Menlo Park, Calif.-based ethanol producer, has raised $170 million in second-round funding, according to VentureBeat. It raised $40 million in startup funding earlier this year from Khosla Ventures and Western Milling. No word yet on the new investors' identities.

Neuronetics Inc., a Malvern, Pa.-based medical device company focused on chronic psychiatric disorders, has raised $35 million in Series C funding, according to a regulatory filing. Quaker BioVentures led the deal, and was joined by return backers InterWest Partners, KBL Healthcare, Onset Ventures, Inv*stor AB and Three Arch Partners.

Arcadian Networks Inc., a New York-based wireless broadband network carrier, has raised $20 million in new Series A funding from Clal Industries and Investments. This follows a $42 million first tranche that came from Goldman Sachs and Gilo Ventures earlier this year. VentureWire reports that it plans to close a third, and final, tranche of between $15 million and $20 million within the next two months.

Angstrom Power Inc., a Vancouver-based developer of high energy density micro-structured fuel cells, has raised US$18 million in new VC funding. VantagePoint Venture Partners led the deal, and was joined by return backers Ventures West, GrowthWorks Capital, Chrysalix Energy, OPG Ventures and Micro-Generation Technology Fund.

Crystal IS Inc., a Green Hills, N.Y.-based commercializer of single-crystal aluminum nitride substrates for the production of production of high power, high temperature and optoelectronic devices, has raised $10.6 million in second-round funding. Lux Capital led the deal, and was joined by Arch Venture Partners, 3i, Credit Suisse, Taiwanese Linkmore Ltd. and Harris & Harris Group.

Magnolia Broadband Inc., a Bedminster, N.J.-based fables semiconductor company focused on antenna solutions for wireless handsets, has raised $10 million in Series E funding, according to VentureWire. Grosvenor Funds and Western Technology Inv*stment co-led the deal, and were joined by return backers SCP Private Equity Partners, DFJ Gotham, Intel Capital, ECentury Capital Partners, Selway Partners and Silverstar Holdings.

OrderMotion Inc., a Boston-based provider of retail management software, has raised $8.5 million in Series B funding, according to a regulatory filing. Updata Partners led the deal with a $6.5 million infusion, and was joined by Capital Resource Partners. OderMotion was spun out of CommercialWare Inc. earlier this year.

Bluestreak Network Inc., a Montreal-based provider of mobile TV and digital television technology, has raised Cnd$8 million in Series C funding. Return backers included Solidarity Fund QFL, BDC Venture Capital and First Capital Group.

SemiSouth Laboratories, a Starkville, Miss.-based developer of silicon carbide electronic components and materials, has raised $5 million in Series A-1 funding. Southern Farm Bureau Life Insurance Co. led the deal, and was joined by return backers Delta Capital Management and Southern Appalachian Fund.

    Buyout Deals

Hellman & Friedman and Texas Pacific Group have agreed to acquire Intergraph Corp. (Nasdaq: INGR), a Huntsville, Ala.