PE Week Wire — Friday 4/30

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Google Inc., a Mountain View, Calif.-based provider of online search engine technology, has filed to raise over $2.71 billion via an IPO of common stock on either the NYSE or Nasdaq. The IPO will be transacted as a Dutch auction. The company has raised around $40 million in VC funding since its 1998 inception, with significant shareholders including Sequoia Capital and Kleiner Perkins Caufield & Byers. www.google.com

 

Permira has agreed to acquire Swisscom‘s 95% stake in Germany-based mobile telecom company Debitel AG. The transaction is valued at €640 million, and is expected to close by the end of June. Permira also plans to offer outstanding Debitel stockholders €11 per share, and then delist the company. www.debitel.com

 

Park Street Capital, a Boston-based private equity fund-of-funds manager, has raised $162 million for its latest vehicle, according to an SEC filing. The firm spun out of Tucker Anthony in 2002, following that company’s acquisition by Royal Bank of Canada. www.parkstreetcapital.com

   

Antisense Pharma GmbH, a Regensberg, Germany-based drug company focused on oncology, has raised €10 million in new VC funding. Investors include Global Chance Fund, Global Asset Fund and INOVA AG. The deal represents the second closing of an expansion round of funding, which now totals €16.5 million. www.antisense-pharma.com

 

MedMark Inc., a Pittsburgh-based drug distribution company focused on chronic medical conditions, has raised $28 million in VC funding. The deal was announced yesterday, but actually closed two months ago. LLR Partners and Quaker BioVentures co-led the deal.

 

Roark Capital Group has acquired a majority interest in Pike Family Nurseries, an Atlanta-based operator of independent lawn and garden centers. No financial terms were disclosed. www.pikenursery.com 

 

Umbro Holdings Ltd., a UK-based provider of sports apparel for men and women, is planning to float on the London Stock Exchange. Various press reports suggest that the deal will value Umbro at 200 million pounds. If true, this is good news for buyout firm Doughty Hanson, which led a 1999 management buyout of Umbro for around 90 million pounds.  www.umbro.com

 

Cytokinetics Inc., a South San Francisco-based drug company focused on the cytoskeleton, will begin trading on the Nasdaq today under ticker symbol CYTK. The company priced 5.8 million shares of common stock at $13 per share, for a total IPO take of $75.4 million (lower than the original filing for $86.25 million). The company had raised around $124 million in VC funding since its 1998 inception, from significant shareholders like Sevin Rosen Funds, CSFB Private Equity, Vulcan Ventures, Mayfield and GSK Ventures. www.cytokinetics.com

 

McCormick & Schmick Holdings LLC, a Portland, Ore.-based operator of upscale seafood restaurants, has filed to raise $172.5 million via an IPO of common stock on the Nasdaq under proposed ticker symbol MSSR. The company’s controlling shareholders are Castle Harlan Partners and Bruckman, Rosser, Sherrill & Co., which acquired McCormick & Schmick in August 2001. www.mccormickandschmicks.com

 

Interactive Health Inc., a Long Beach, Calif.-based provider of robotic massage chairs and zero-gravity chairs, has filed to raise $80 million via an IPO of common stock on the Nasdaq under proposed ticker symbol IHTT. Interactive Health is majority owned by private equity firm Whitney & Co. www.interhealth.com

 

Intersections Inc., a Chantilly, Va.-based provider of identity theft protection and credit management services, will begin trading on the Nasdaq under ticker symbol INTX. The company has priced 6.25 million shares of common stock at $17 per share (high end of its $15-$17 offering price range), for a total IPO take of $106.25 million. The company has raised around $28 million in private equity funding since its 1996 inception, with significant shareholders including Conning Capital Partners, Loeb Partners and Equifax Inc. www.intersections.com

 

PlanetOut Inc., a San Francisco-based online media company serving for gay, lesbian, bisexual and transgender communities, has filed to raise $75 million via an IPO of common stock on the Nasdaq under proposed ticker symbol LGBT. The company has raised over $36 million in VC funding since its inception, with significant shareholders including JPMorgan Partners, AOL and Mayfield. www.planetoutinc.com

 

 

David Bonderman, founding partner of Texas Pacific Group, has resigned from the board of directors at Seagate Technology Inc. (NYSE: STX).   

 

Ray Rothrock, managing general partner with Venrock Associates, has joined the board of directors of Venrock portfolio company PGP Corp., a Palo Alto, Calif.-based provider of digital security solutions. www.pgp.com

 

News From Thursday 4/29

Ripplewood Holdings and MidOcean Partners have agreed to collaborate on new private equity investments in the U.S. and in Europe, effective immediately. The two firms will continue to operate independently while they invest their current funds, but then will raise a joint fund under the Ripplewood name. Timothy Collins, senior managing director of Ripplewood, and Ted Virtue, cofounder and CEO of MidOcean Partners, will both become senior managing directors of the new fund. www.midoceanpartners.com

 

AWS Convergence Technologies, the Gaithersberg, Md.-based provider of weather information software (i.e. WeatherBug), has raised $23 million in Series B funding. New investors Sequoia Capital and Polaris Ventures joined return backer HarbourVest. In conjunction with the financing, Michael Moritz of Sequoia and Alan Spoon of Polaris will join the AWS board of directors. www.aws.com

 

DLJ Merchant Banking Partners has added three new operating executives: Ron Beegle, James “Jimmy” Finkelstein and Larry Pickering. Beegle will be chairman of Global Consumer/Retail Investors, which will specialize in sourcing transactions in the consumer and retail sectors. He most recently served in various senior positions with Gap Inc. Finkelstein will be chairman of Global Media Partners’ efforts sourcing transactions in the media industry, after having served as president and CEO of National Law Publishing Co., JAF Communications, New Communications Inc. and Marquis Who’s Who LLC (president only). Pickering will be chairman of Global Healthcare Partners, after having most recently served as chairman of Johnson & Johnson Development Corp. www.csfb.com

 

Novasys Medical Inc., a Newark, Calif.-based company focused on the treatment of female pelvic disorders, has raised $25 million in Series C funding. JPMorgan Partners and Invesco Private Capital co-led the deal, and were joined by return backers Delphi Ventures, Onset Ventures, Alloy Ventures, Affinity Capital Management and GBS Venture Partners. The company now has raised over $41 million in total VC funding since its 1998 inception, including a $13 million Series B deal in 2001 at a post-money valuation of approximately $21.8 million. www.novasysmedical.com

 

Ygnition Networks, a Tukwilia, Wash.-based provider of broadband services to the multi-family real estate industry, has purchased U.S. OnLine‘s cable television businesses in Houston and Ft. Worth, Texas. Ygnition is a portfolio company of ComVentures and Chrysalis Ventures. www.ygnition.com

 

Telefonos de Mexico SA (NYSE: TMX) has acquired a 40% stake in Chilean telecom company Chilesat Corp. SA (NYSE: CSA) from Southern Cross Latin America Private Equity Fund and GE Capital. The Mexican carrier now plans to launch a public offer to buy all remaining outstanding shares of Chilesat at the same price it paid for Southern Cross’ and GE Capital’s shares, although that price has not yet been disclosed.

 

Barrier Therapeutics Inc., a Princeton, N.J.-based drug company focused on dermatology, will begin trading on the Nasdaq under ticker symbol BTRX. The company priced five million shares of common stock at $15 per share (middle of its $14-$16 offering price range), for a total IPO take of $75 million. The company had raised around $103 million in VC funding since its 2001 inception, with significant shareholders including Johnson & Johnson Development Corp., JPMorgan Partners, Perseus-Soros BioPharmaceutical Fund, MPM Capital and TL Ventures. www.barriertherapeutics.com

 

James Janicki has agreed to become an entrepreneur-in-residence with Austin Ventures. He previously served as chief software architect and executive chairman of the board at MetaSolv Inc., an Austin Ventures portfolio company that provides telecom infrastructure solutions. Janicki had served as MetaSolv CEO from 1998 through 2003. www.metasolv.com

 

Ned Grace, managing director of Grace Venture Partners, has been elected to the board of Boston Restaurant Associates (OTC BB: BRAI).

  

Quantum Energy Partners has closed its third fund with $345 million in limited partner commitments. The new fund will invest between $10 million and $50 million in North American energy companies, with a particular target on oil and gas businesses trying to build reserve bases through acquisitions, exploitation and exploration. Participating LPs include General Motors Asset Management, Goldman Sachs, DuPont Capital Management, Duke University, Delta Airlines Benefit Trust, Verizon Investment Management, the Ewing Marion Kauffman Foundation and Morgan Stanley. The Houston, Texas-based private equity firm’s second fund closed with $225 million in 2001. www.quantumep.com

 

Vintage Venture Partners, an Israeli private equity firm focused on the secondary markets, has held a $64 million final close on its inaugural fund. The firm expects to purchase limited partnership interests of Israel-related VC funds and direct portfolios of Israel-related technology investments. www.vintageventures.com

 

News From Wednesday 4/28

 

 

Garnett & Helfrich Capital has closed its inaugural fund with $250.5 million. Limited partners include Harvard Management Co., Grove Street Advisors, Stanford Management Co., HarbourVest, RHO Management, University of Michigan, Columbia University, Comprehensive Financial Management, Capricorn Holdings, Park Street Capital and Silicon Valley Bank. The firm will lead buyouts of mid-market technology companies, with a particular emphasis on spinouts of under-performing and non-strategic businesses. The firm is run by Terry Garnett (formerly of Venrock Associates) and David Helfrich (formerly of ComVentures).

 

STM Power Inc., an Ann Arbor, Mich.-based manufacturer of commercial and industrial-sized power generation systems utilizing external combustion technology, has raised $29.6 million in Series B-1 funding. VantagePoint Venture Partners led the deal, and was joined by Nth Power, CDP Capital Technology Ventures, Sempra Energy and Smart Technology Ventures. www.stmpower.com

 

Mark Lamarre has joined Wachovia Securities as managing director and head of the equity private placements group. He will report to Jeff Armstrong, head of Wachovia’s M&A and financial sponsors groups. Lamarre most recently served as a managing director with Credit Suisse First Boston, where he managed the Internet infrastructure and services industry group. www.wachovia.com

 

Apax Partners and iNova Capital have invested €34 million and €5 million, respectively, in the Spanish companies owned by the Perez Dolset family, in order to create an interactive entertainment company called The Wisdom Group. Following the transaction, Wisdom Group shareholders include: Perez Dolset family with 51%, Apax Partners with 26%, iNova Capital with 19% and other minority shareholders with 4%. GBS Finanzas advised the Perez Dolset family on the deal.

 

Five9 Inc., an Emeryville, Calif.-based provider of hosted contact center solutions, has raised $5 million in Series A funding. Investors included Hummer Winblad Venture Partners and Mosaic Venture Partners. www.five9.com

 

Innoprise Software Inc., an Orlando, Fla.-based enterprise software company focused on solutions for the utility and local government markets, has raised $4 million in Series A funding. ArrowPath Venture Partners led the deal. www.innoprise.com

 

Optasite Inc., a Worcester, Mass.-based provider of real estate acquisition, cell site construction, testing and maintenance services for cellular and PCS carriers, has raised $10 million in new VC funding. The capital will be used to develop and acquire wireless tower assets. The deal was co-led by Columbia Capital, Highland Capital Partners and Centennial Ventures. Return backers included Village Ventures, TSG Equities, Worcester Capital Partners, Long River Ventures, TSG Equities, Mass Ventures, Berkshire Capital Ventures and company management. The company now has raised $18 million in total VC funding since its 2001 inception. www.optasite.com

 

Fusepoint Managed Services Inc., a Toronto, Canada-based provider of outsourced IT services and infrastructure, has raised US$10 million from M/C Venture Partners. www.fusepoint.com

 

Ignios Ltd., an Oxford, UK-based developer of system-on-a-chip technologies, has raised $3.8 million in first-round funding co-led by Alice Lab and BTG. www.ignios.com

 

Siemens AG (NYSE: SI) has agreed to acquire Trench Electric Holding BV, a Netherlands-based maker of high-voltage technology products, from CVC Capital Partners. The deal is being transacted via Siemens’ Power Transmission and Distribution Group (PTD), and is valued at approximately €285 million. No additional financial details were disclosed. www.trenchgroup.com 

 

Covansys Corp. (Nasdaq: CVNS), a Farmington Hills, Mich.-based provider of strategic outsourcing and integrations services, has agreed to a recap deal with significant shareholder Clayton, Dubilier & Rice. Under terms of the agreement, CD&R will exchange all of its existing Covansys holdings for $180 million in cash, two million shares of Covansys common stock, a $15 million subordinated note due at the end of 2005 and five million five-year warrants with a strike price of $18 per share. The deal will be financed by Covansys cash on hand, plus a recent strategic investment from Fidelity Information Services Inc. CD&R previously held 8.7 million shares of Covansys common stock on an as-converted basis, 5.3 million warrants and 200,000 of Series A voting convertible preferred shares. www.covansys.com

 

UTI Corp., a Collegeville, Pa.-based provider of devices, assemblies and components to medical OEMs, has agreed to acquire MedSource Technologies Inc. (Nasdaq: MEDT). The transaction is valued at approximately $230 million – including assumed net debt – and is being backed by UTI investors KRG Capital Partners and DLJ Merchant Banking Partners. The deal also includes debt, although no lender has been identified. www.uticorporation.com

 

Animas Corp., a Frazier, Pa.-based provider of external insulin pumps for diabetics, has set its IPO price to $13-$15 per share. The company has raised over $61 million in VC funding since its 1998 inception, including a $16.86 million injection earlier this year at a post-money valuation of approximately $126 million. Significant shareholders include HLM Management Co., Liberty Ventures and Johnson & Johnson Development Corp. www.animascorp.com

 

GMT Communications Partners, a private equity firm focused on the European communications industry, has added Massimo Prelz Oltramonti as a senior advisor and investment committee member. Oltramonti served for eight years as a European managing director with Advent International, where he founded the firm’s Italian and French offices. He left Advent in 1999 for a three-year special limited partner gig with Gilbert Global Equity Partners. Since 2001, he has taken on a variety of senior positions, including chairman of Jazztel PLC and director of CyberCity AS. www.gmtpartners.com

 

Prism Capital has hired Bill Harlan as a partner, according to PrivateEquityCentral.net. He previously ran the Chicago office of Golub Associates.

Savista LLC, a business process outsourcing company majority-owned by Accel-KKR, has named Jeff Bizzack as CEO, effective immediately. He previously served as co-founder and executive vice president of ProBusinessServices Inc., which was sold to Automatic Data Processing Inc. (NYSE: ADP) in 2003 for $500 million. www.savistacorp.com

 

News From Tuesday 4/27

 

Ripplewood Holdings LLC has made a 230 million offer for the Phosphorus Chemicals business of Akzo Nobel NV (Nasdaq: AKZOY).

 

Proficiency Inc., a Malborough, Mass.-based provider of enterprise productivity solutions for collaborative engineering and design data interoperability, has raised $12 million in Series D funding. Ampersand Ventures led the deal, and was joined by return backers Carmel Ventures, Charles River Ventures, Concord Ventures, Eucalyptus Ventures, Genesis Partners, Koor Corporate Venture Capital and Pitango Venture Capital. The company now has raised around $50 million in total VC funding since its 1998 inception, including a $27.4 million Series C deal in 2001 at a post-money valuation of approximately $57.5 million.   www.proficiency.com

 

Sevin Rosen Funds has added both John Oxaal and David McLean to the firm’s general partnership. Oxaal first joined Sevin Rosen in 1999 as an entrepreneur-in-residence, after having co-founded and run Volumetrics Medical Imaging. He currently serves on the boards of Ethertronics, Luminescent Technologies, Luxtera, Orbital Data, Tellicent and Scintera Networks. McLean is a 20-year semiconductor and networking industry veteran, who most recently served as president and CEO of Cicada Semiconductor, which was sold to Vitesse Semiconductor. McLean also led the introduction of IBM Corp.’s DSP product line into Asia, and worked for such startups as Pliant Systems and Applied DWM. www.srfunds.com

 

Pulse~Link Inc., a San Diego-based provider of ultra-wideband technologies, has raised $30 million in Series D funding. Investors included Mobile Telecommunications Co., National Investment Co., Jamson Holdings and six unnamed public companies. www.pulse-link.net

 

Ikanos Communications Inc., a Fremont, Calif.-based provider of broadband delivery solutions, has raised over $15 million in Series E funding. Copan led the round, and was joined by fellow new investor PMC-Sierra Inc. (Nasdaq: PMCS). Return backers include Greylock, Intel Capital, JPMorgan Partners, Ridgewood Capital, Sequoia Capital, Telesoft Partners, TL Ventures, Walden International and VentureTech Alliance, an affiliate of Taiwan Semiconductor Manufacturing Co. (NYSE: TSM). www.ikanos.com

 

WholeSecurity Inc., an Austin, Texas-based provider of endpoint security solutions, has raised $10 million in new Series B funding. Parker Price Venture Capital led the deal, and was joined by return backers New Enterprise Associates, Venrock Associates and Trellis Partners. The company now has raised over $20 million in total VC funding since its Feb. 2003 inception. www.wholesecurity.com

 

Sapias Inc., a San Francisco-based provider of mobile resource management solutions, has raised $8 million in new VC funding. Alloy Ventures and Hummer Winblad Venture Partners co-led the deal, and were joined by return backers Catamount Ventures and Garage Technology Ventures. www.sapias.com

 

Onaro Inc., a Boston-based provider of SAN control and change management solutions, has raised $7.75 million in Series B funding. Newbury Ventures led the deal and was joined by return backer Cedar Fund. As part of the financing, Trevor Kienzle of Newbury Ventures will join the Onaro board of directors. www.onaro.com

 

Ketera Technologies Inc., a Santa Clara, Calif.-based provider of spend management solutions, has raised $10 million in Series C-1 funding. New investor Integral Capital Partners was joined on the deal by existing backers Foundation Capital and Kleiner Perkins Caufield & Byers. www.ketera.com

 

Essentia Biosystems Inc., a Mountain View, Calif.-based drug company focused on dermatology, has raised $13 million in Series B funding. Essex Woodlands Health Ventures led the deal, and was joined by BioAsia Investments, Technology Partners, company management and unnamed existing investors.

 

SunGuard Data Systems Inc. (NYUSE: SDS) has acquired Collegis Inc., a Maitland, Fla.-based provider of IT services to colleges and universities, from private equity firm Frontenac Co. As part of the deal, Frontenac will lead a $25 million investment into Collegis (to be renamed Deltak edu Inc.) in exchange for a minority ownership position. Joining Frontenac on the deal will be Salt Creek Ventures. www.collegis.com

 

Schroder Ventures US has agreed to acquire Direct Group (DG), a West Trenton, N.J.-based provider of direct mail services, from Prinexus Inc. The deal is worth approximately $50 million, and is being transacted in concert with DG management.

 

Northwest Biotherapeutics Inc. (OTC BB: NWBTE) has entered into a recapitalization agreement with Toucan Capital. At Toucan’s option, the recap would provide Northwest Biotherapeutics with $40 million through the issuance of new securities to Toucan and a syndicate of investors. Following this issuance, Toucan and its partners would own, on a combined basis, over 90% of Northwest Biotherapeutics’ outstanding capital stock. www.nwbio.com 

 

Genesis Park LP, a Houston, Texas-based private equity firm, has invested $10 million into El Paso Networks LP, a subsidiary of El Paso Corp. (NYSE: EP). The convertible stock deal gives Genesis Park a 28% ownership interest in El Paso Networks and its broadband system.


 

NuVasive Inc., a San Diego-based medical device maker focused on the surgical treatment of spinal disorders, has set its IPO price range to $11 to $13 per share, and also set its number of offered shares to 6.5 million. The company has raised over $73 million in VC funding since its 1997 inception, including a $9.8 million infusion in 2003 at a post-money valuation of approximately $131 million. Significant shareholders include William Blair Capital Partners, Kleiner Perkins Caufield & Byers, Enterprise Partners, Domain Associates and A.M. Pappas & Associates. www.nuvasive.com

 

Enterprise Partners Venture Capital has hired Krisztina Zsebo as a principal focused on the life sciences sector. She most recently served as president and CEO of Remedyne Corp., and also has held senior positions with Connetics Corp., AZLA Corp., Cell Genesys and Amgen. www.epvc.com

 

Terrel “Terry” Bressler has joined Cleary Gull Inc. as a managing director in the Milwaukee-based firm’s investment banking department. He most recently served as director of business development for Merit Capital Partners, which previously was known as William Blair Mezzanine Capital Partners. www.clearygull.com

 

Nancy Shoendorf, a managing partner with Mohr, Davidow Ventures, has joined the board of directors at Shutterfly Inc., a Redwood city, Calif.-based provider of online photo services. Mohr, Davidow is a Shutterfly investor. www.shutterfly.com

 

David Lam, a venture partner with DynaFund Ventures, has joined the board of directors at Qcept Technologies Inc. www.qceptech.com

NEWS FROM MONDAY 4/26

Flag Capital Management has raised $353 million for its fifth VC-focused fund-of-funds, and also is marketing its second vehicle focused on the broader private equity markets (target capitalization of $350 million). PE Week subscribers can read more on this story in today’s print edition.

 

Arroyo Video Solutions Inc., a Pleasanton, Calif.-based provider of a video services delivery solutions, has raised $13 million in first-round funding. DCM-Doll Capital Management and Foundation Capital co-led the deal, and were joined by Time Warner Investments and Comcast Interactive Capital. As part of the transaction, Carl Amdahl of DCM and Adam Grosser of Foundation Capital have joined the Arroyo Video board of directors. PE Week subscribers can read more on this story in today’s print edition. www.arroyo.tv

 

Charles Warden has joined Versant Ventures as a managing director, effective July 1. He will work out of the firm’s Newport Beach office, and focus on the medical device sector. Warden most recently served as a managing director in the Boston office of Schroder Ventures Life Sciences, which he joined in 1996. In related news, Versant has hired Amy Scott as an associate also focused on the medical device sector. He comes from Edwards Lifesciences (formerly Baxter He! althcare Corp.), where she held various roles focused on brand management and marketing. www.versantventures.com

 

MedManage Systems Inc., a Bothell, Wash.-based provider of prescription drug sampling solutions, has raised $6 million in Series C funding. Versant Ventures led the deal, and was joined by fellow new investor Lilly Ventures and return backer Prism Venture Partners. www.medmanagesystems.com

 

Dexterra Inc., a Bothell, Wash-based provider of enterprise software that enables business processes to be mobile, has raised $16 million in Series B funding. Canaan Partners led the deal, and was joined by fellow new investors Motorola Ventures and Intel Communications Fund. Return backers include Sigma Partners and Sagus Capital. www.dexterra.com

 

Calien