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Need Boston Celtics tickets? Ask a venture capitalist. Earlier this year, Wycliffe Grousbeck of Highland Capital Partners and Stephen Paliuca of Bain Capital announced plans to buy the fabled NBA franchise for a record $360 million. On Tuesday, the pair unveiled a group of minority investors that included such private equity industry stars as: Paul Edgerley, managing director at Bain Capital; Jim Breyer, general partner of accel Partners; Bill Egan, founder and general partner of Alta Communications; David Roux, a founder of Silver Lake Partners; and Mark Wan, general partner of Three Arch Partners. Each minority investor listed has pledged approximately $10 million to the cause. Also participating at a combined $40 million clip (and joining the team’s executive committee) are James Pallota of Tudor Investments and Glenn Hutchins of Silver Lake Partners.
NetMotion Wireless Inc., a Seattle-based supplier of software solutions for wireless networks, today announced the second close of its Series B funding, with a total round of $10.8 million. The round sees the addition of two new investors: Dolphin Equity Partners and Mitsui & Co. Venture Partners (MCVP), as well as additional participation by existing investors Northwest Venture Associates and Alexander Hutton Venture Partners.
Cognos (Nasdaq: COGN) has reached a definitive agreement to acquire Adaytum, a Minneapolis-based provider of enterprise performance-planning software, for $160 million. Adaytum has received over $52 million in venture funding from such firms as St. Paul Venture Capital ($15.6 million), 3i Group, Accenture Technology Ventures, American Express and JPMorgan Partners. Cognos expects the deal to be finalized in January.
BioRexis Pharmaceutical Corp. of King of Prussia, Pa. recently raised more than $8 million in its initial Series A equity financing. Tullis-Dickerson & Co. Inc., ProQuest Investments and Quaker BioVentures participated in the financing.
QuickMedx, a Minneapolis-based healthcare company, today announced it successfully raised $2.7 million in Series A private equity financing. The round was led by TGap Ventures LLC, a new venture capital firm headquartered in Kalamazoo, Mich. Other investors included Affinity Capital Management, Perkins Capital Management and Key Investments.
Impres Medical Inc., a Minneapolis-based developer of medical devices for the treatment of gynecological disorders, today announced the closing of a $2.3 million Series A preferred stock venture capital financing led by Technology Funding Inc. Additional investors included Sunflower Capital Partners, Upper Lakes Growth Capital, Portage Equity Investments II and an unnamed major strategic partner.
Michael Flaherman, outgoing chairman of the California Public Employees’ Retirement System’s (CalPERS) investment committee, plans to join buyout firm New Mountain Capital as a senior advisor. Flaherman has served on the CalPERS board since 1995, and as chairman since 2000.
ClearLight Partners today announced that it acquired Futurelogic Inc. in partnership with the company’s existing management team. ClearLight and Futurelogic’s founding management provided equity in the transaction, while American Capital Strategies provided $27 million of senior, mezzanine, and junior financing and took a small equity stake in the company. Futurelogic is a Glendale, Calif.-based developer of small-format embedded thermal printing subassemblies.
DLJ Merchant Banking Partners III, a fund managed by CSFB Private Equity, today completed the sale of $250 million of exchangeable subordinated notes in TXU Energy Co. to various entities affiliated with Berkshire Hathaway Inc. TXU Energy is a wholly owned subsidiary of TXU Corp. DLJ Merchant Banking Partners III initially completed the acquisition of $750 million of notes on November 22, 2002. The notes acquired by Berkshire Hathaway entities have the same terms and conditions as originally agreed to by DLJ Merchant Banking Partners III.
Dailey Capital Management announced that three investment funds under its management have acquired the business of Tiro Industries, a Fridley, Minn.-based developer and manufacturer of personal care goods for professional salons. Financing for the acquisition includes senior debt provided by Transamerica Business Capital Corp. and mezzanine financing provided by Ironwood Mezzanine Fund LP and Convergent Capital Partners I LP.
Wen Wei Po, a Hong Kong newspaper, is reporting that Warburg Pincus LLC has invested a total of $15 million in Zdsoft Net Co Ltd., an education software developer.
NEWS FROM THURSDAY 12/19
The California Public Employees’ Retirement System (CalPERS) yesterday agreed to settle a lawsuit filed by the San Jose Mercury News over the release of private equity investment data. Following approval of the settlement by the courts, CalPERS will disclose internal rate of return (IRR) performance data on its Web site (www.CalPERS.ca.gov) for each of the pension system’s 207 private equity funds, including the date the investment was made, the amount of capital drawn down so far and the amount returned to CalPERS in the form of profits. Under the terms of the settlement, the Mercury News will withdraw all claims against CalPERS, including its request for underlying portfolio company information such as quarterly earnings and internal valuations. In addition, this morning’s Mercury News is reporting that CalPERS has agreed to reimburse the newspaper for up to $100,000 in legal costs associated with the case.
The Boston Globe is reporting that Celox Networks Inc. will close up shop today, after burning through over $160 million in venture capital funding. The Southborough, Mass.-based optical switch maker was in the midst of raising a new round of convertible note funding (according to an August interview with PE Week), but apparently came up about $35 million short of its $45 million target (according to SEC documents). Among the company’s long list of backers were ABS Ventures, Apex Venture Partners, Bay Partners, DB Investor, Dain Rauscher Corp., First Chicago Venture Capital, Goldman Sachs, JPMorgan Partners, Pilot House Ventures, Putnam Investments, Raza Foundries, Rosewood Capital, SB Cowen, Storm Ventures, Texas Pacific Group and Thomas Weisel Partners. Celox was valued at around $340 million following a $67 million Series B funding in April 2000.
Datria Systems Inc., an Englewood, Colo.-based software company focused on speech-enabled applications, announced today that it has secured a $7.5 million Series C round of financing. Technology Partners led the financing and was joined by new investor SAP Ventures, as well as Datria management and existing investors Four States Investments, Greenwood Gulch Ventures, Koch Ventures, Pablo Pick and Quest Capital.
Patron Capital Ltd. has reached agreement to acquire 100% control of the largest UK independent multi-site bulk liquid and gas storage operator via a two-step transaction. The first part is a