PE Week Wire — Friday 5/30

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iRobot Corp., a Burlington, Mass.-based provider of robotic technology, has raised $13 million in new venture funding. Trident Capital led the deal, and was joined by return backers Acer Technology Ventures, Fenway Partners and First Albany Cos. The company has now raised over $26 million, including a $7 million deal in 2001 at a post-money valuation of around $62.5 million.

Ballast Point Venture Partners, a St. Petersburg, Fla.-based venture firm affiliated with Raymond James Financial Inc., has held a $56 million final closing on its inaugural fund. The new vehicle will provide growth capital to private companies throughout the Southeast and Texas.

Candover has acquired Anglo-Dutch private bank Insinger de Beaufort for €182.5 million with another €15 million of deferred consideration payable dependent on the future performance of the business. Going forward the business will be known as Equity Trust. Candover will take a majority stake in the equity of the business, investing alongside the management team, with Insinger de Beaufort retaining a significant stake. Equity Trust has appointed The Royal Bank of Scotland as its lead banker.

Good Technology Inc., a Mountain View, Calif.-based provider of enterprise mobile computing solutions, has raised $27 million in new venture funding led by Broadview Capital Partners. Other investors included return backers Kleiner, Perkins, Caufiled & Byers and Benchmark Capital.

Velosel Corp., a Mountain View, Calif.-based provider of collaborative product information management solutions to the consumer goods industry, has raised $10 million in Series C funding. Levensohn Venture Partners led the deal, and was joined by return backers Mobius Venture Capital, Pacific Partners and Walden International. The company now has raised over $35 million since being founded in early 1999.

Jeremy Jaech has joined the advisory board of Seattle-based venture firm Voyager Capital. Jaech was co-founder and CEO of Visio Corp., was sold to Microsoft in Jan. 2000 for $1.5 billion.

The Michigan Venture Capital Association is working with Lansing legislators to formulate a new bill that would establish a $150 million fund to be used by Michigan VCs for investment in local businesses. The bill is now being drafted in Lansing and will be sponsored by Senator Michael Bishop (R-Oakland County). It will ask the state’s legislators to approved tax credits that the VCs can use to support loans for start up and early-stage companies. No investment will be sought from the state. The plan is based on a similar program already operating in Oklahoma.

Cellerant Therapeutics Inc., a Palo Alto, Calif.-based developer of novel hematopoietic stem cell-based therapies, has raised $10 million in Series A funding from Allen & Co., MPM Capital and company management.

Infowave Software Inc. has acquired the assets of HiddenMind Technology LLC, a Cary, N.C.-based wireless software provider. The stock deal is worth just $2 million, even though HiddenMind had raised around $35 million in venture capital since its 1994 founding. Investors had included Warburg Pincus and BEA Systems.

TechRx Inc., a Coraopolis, Pa.-based provider of technology solutions to the prescription drug industry, has been acquired by NDCHealth (NYSE: NDC) for $40 million in cash and $12 million in stock. Venture backers of TechRx included Allen Capital, Cardinal Partners, Hudson Venture Partners, LibertyView, NDCHealth (as a minority investor) and Spencer Trask Ventures.

The Deal is reporting that Cliff Robbins is reducing his partnership role at General Atlantic Partners. The former KKR investor said that he is looking to engage in a broader range of investment activities than General Atlantic’s IT mandate.

The Deal also is reporting that Palladium Equity Partners co-founder Timothy Mayhew will soon leave the firm, and that Palladium has decided to postpone fund-raising efforts on its $300 million-targeted third fund. The same story notes that fellow buyout shop Thayer Capital Partners has held a $300 million final close on a new fund that was originally targeted at $1 billion.
News From Thursday 5/29

Troika Networks Inc., a Westlake Village, Calif.-based developer of storage area network technology, has raised $13 million in Series D funding led by new investor Anthem Venture Partners. Hamilton Apex Technology Ventures also participated, alongside return backers Draper Fisher Jurvetson, Dynafund Ventures and Windward Ventures. The company now has raised around $70 million since its 1996 founding, including a $41 million deal in the summer of 2000 at a post-money valuation of approximately $170 million.

Akzo Nobel NV has agreed to sell its Casco Integrated Papers business for €114 million ($135 million) to Harvest Partners and Deutsche Beteiligungs AG. Casco is a Dusseldorf, Germany-based supplier of surfacing materials for applications in the furniture, flooring, woodworking and automotive industries. It recorded 2002 sales of €265 million ($315 million).

SafeView Inc. has raised $6 million in Series A funding. The Menlo Park, Calif.-based company will use the new capital to begin commercialization of a portal system that uses millimeter wave holographic technology to screen personnel for weapons, threats and contraband material. Draper Fisher Jurvetson led the deal, and was joined by DFJePlanet, Stanford University and strategic partner InVision Technologies.

Devesh Garg has joined Bessemer Venture Partners as a Menlo Park, Calif.-based operating partner. Garg most recently served as general manager of Broadcom Corp.‘s security business unit, and before that spent six years in sales management at Synopsys Inc.

U.S. Steel Corp. has agreed to sell two underground coal mines and related assets to PinnOak Resources LLC, a new company formed by Questor Management Co. and Benjamin M. Statler LLC. Terms of the transaction were not disclosed.

Platinum Equity has sold Synertech Health System Solutions LLC and AMISYS LLC to Stamford, Conn.-based private equity firm Whitney & Co. for an undisclosed amount. Synertech is an outsourcer to the consumer-directed healthcare market, while AMISYS is a provider of managed care administrative processing systems. Kevin Brown, former chairman and CEO of AMYISYS, has been hired by Whitney to run what will become a merged organization named Amisys Synertech Inc.

BioMimetic Pharmaceuticals Inc., a Nashville, Tenn.-based drug company focused on protein therapeutics for the healing and restoration of bone and other tissues, has raised new venture funding led by new investor Memphis Biomed Ventures. Return backers include Burrill & Co., Holden Capital and Novo A/S.

Riverside Co. has agreed to sell consumable dental product manufacturer Spofa Dental AS to Kerr Corp., a subsidiary of Sybron Dental Specialties Inc. (NYSE: SYD ). Riverside’s European buyout fund has owned Spofa since 1998. Harris Williams & Co. acted as financial advisors to Spofa Dental. The terms of the transaction have not been disclosed, and are still subject to regulatory approval.

GTECH Holdings Corp. (NYSE: GTK ) has completed the acquisition of PolCard SA, a Polish credit card transaction processing company. The deal was originally announced in February, and involves an equity purchase price of $60 million, plus $2 million of assumed debt. GTECH now holds a 62.8% controlling equity stake in PolCard, while Warsaw-based private equity firm Innova Capital SP holds a 36.9% equity stake.

The San Jose Mercury News is reporting that Sandy Robertson recently held a $1,000-per-person fund-raiser at his San Francisco home for presidential candidate Joe Lieberman (D-Conn). Robertson was founder of Robertson Stephens, and currently serves as chairman of buyout shop Francisco Partners.

The Financial Times is reporting that French telecom equipment company Alcatel (NYSE: ALA) is considering a plan to sell off its Saft battery-making unit for between €560 million and €700 million.

News From Wednesday 5/28

Ziptronix Inc., a Research Triangle Park-based developer of 3D integrated circuits, has raised $17.4 million in second round funding. Grotech Capital Group and Intersouth Partners co-led the deal, and were joined by fellow new investors Research Triangle Ventures, Research Triangle Institute, MCNC Enterprise Fund and iSherpa Capital. Return backers included Alliance Technology Ventures and Xilinx Corp. (Nasdaq:XLNX). The company had previously raised a $6.5 million Series A round in Jan. 2001 at a post-money valuation of $22 million.

Compound Therapeutics Inc., a Waltham, Mass.-based biotech company focused on developing a new class of protein therapeutic drugs, has raised $12 million in Series A funding. The deal was co-led by Atlas Venture, Flagship Ventures and Polaris Venture Partners. New Compound Therapeutics board members include Jean-François Formela of Atlas, Noubar Afeyan of Flagship and Terry McGuire of Polaris.

David McKenna has rejoined Advent International as a partner in its Boston office. He will concentrate on concentrate on buyouts and growth equity investments in North America, with an emphasis on industrial technology buyouts. McKenna has spent the past three years with Bain Capital, prior to which he worked for eight years at Advent.

Altira Group, a Denver-based venture firm focused on energy technology companies, has closed its fourth fund with $64 million.

Edward Arditte has joined Tyco International Ltd. (NYSE: TYC) as senior vice president of investor relations. He most recently served as CFO for BancBoston Capital, which is the private equity arm of FleetBoston Financial.

HyperNex Inc., a State College, Pa.-based developer pf inspection equipment based on rapid X-ray diffraction techniques, has raised $2.5 million in Series B venture funding. Draper Triangle Ventures led the deal alongside fellow new investors CID Equity Partners and Draper Fisher Jurvetson. Existing investors Staley Capital Partners and ATMI also participated.

Metallic Power, a Carlsbad, Calif.-based developer of zinc regenerative fuel cells,has closed its fourth round of venture funding with $13.5 million. New investors include CDP Capital/Technology Ventures and Norsk Hydro Technology Ventures, while return backers include Arete Corp., The Beacon Group Energy Investment Fund II, Cinergy Ventures, Teck Cominco Ltd., Hydro-Quebec CapiTech, MP Investments Inc., Nth Power and Perseus LLC.

Riverlake Partners, a Portland, Ore.-based private equity firm focused on lower middle-market opportunities, has held a $15 million first close on its inaugural fund. The firm was launched recently by Erik Krieger, former chairman of Pacific Crest Securities, and Jim Lawson, co-founder of Lincoln Partners LLC.

Breed Technologies Inc., an automotive air bag maker that was acquired earlier this year by The Carlyle Group, yesterday unveiled a restructuring plan that includes the elimination of 3,500 jobs by the end of 2004.

The European Union Commission has approved CVC Capital Partners’ €845 million acquisition of Viterra Energy Services from German energy firm E.On AG.

MBI, a Waltham, Mass.-based provider of healthcare debit cards for pre-tax benefits administration, has received a $5 million financing commitment from private equity funds managed by Mesirow Financial.

Cornice Inc., a Longmont, Colo.-based provider of high-capacity storage for consumer electronics and computer products, said today that it raised $22 million in venture capital last summer. Investors included CIBC Capital Partners, Nokia Venture Partners and VantagePoint Venture Partners.

Reuters is reporting that Lehman Brothers has hired Jon Macintosh as a managing director and principal within its private equity unit, where he will focus on mezzanine transactions. Macintosh previously worked at DB Capital Partners and Morgan Grenfell Private Equity.
News From Tuesday 5/27
Lighthouse Capital Partners has held a $366 million final close on its fifth investment fund. Lighthouse’s previous fund was capitalized with $230 million.

Reflectent, a Lowell, Mass.-based developer of edge performance management software, has secured $3.5 million in Series A funding. The round was led by Greylock and Sigma Partners.

Unveil Technologies Inc., a Waltham, Mass.-based developer of enterprise speech self-service applications for contact centers, has raised $4.5 million in first round funding. Sevin Rosen Funds led the round, with Solstice Capital also participating.

Thomas McMurray will join Aurora Funds as a Washington-based special venture partner. He is a former general partner with Sequoia Capital, as well a a former Duke University professor.

Security Source Inc., a Peabody, Mass.-based provider of outsourcing services for the retail industry, has raised $15 million in additional Series A financing from Technology Crossover Ventures. Security Source also announced that it has acquired Somerville, Mass.-based Reputation Technologies, which has received a small amount of venture backing from H&Q Asia Pacific.

Thomas Widmann has joined Wellington Partners as a venture partner focused on life sciences. Widmann was a member of the team that founded Actelion Ltd. in December 1997, and served as that company’s first CEO.

Murphy Clark has joined McGuire Woods Capital Group as a vice president focused on mergers and acquisitions for emerging to middle-market companies. He most recently served as a principal with TL Ventures.

Symagery Microsystems Inc., a Ottawa-based supplier of intelligent imaging components, has raised $5.6 million in second round funding. VenGrowth Capital Partners and the Canadian Science & Technology Growth Fund co-led the deal, and were joined by return backers BDC Venture Capital, Capital Alliance Ventures Inc. and Orisar Inc.

Todd Headley has been named CFO of Sourcefire Inc., a Columbia, Md.-based provider of network security. He previously served as CFO of BNX and, before that, as CFO of FBR Technology Ventures.

John Doerr has been named a member of The Teaching Commission, a New York-based nonprofit focused on finding ways to recruit and retain high-quality teachers. Doerr is co-founder of the NewSchools Venture Fund, and is also a partner at Kleiner Perkins Caufield & Byers.

The Toronto Globe & Mail is reporting that Caisse de Depot et Placement du Quebec, Canada’s largest pension fund manager, has laid off one-quarter of its remaining staff. The nine Montreal-based layoffs follow much larger cuts last December.

Dow Jones is reporting that Invensys PLC is poised to select the winning bidder for its Baan software business. The report claims that General Atlantic Partners is in the lead with an $140 million offer, but that talks are continuing with both Texas Pacific Group and an unnamed party.

The Financial Times is reporting that Montagu Private Equity has purchased vegetarian food product producer Marlow Foods from AstraZeneca for £70 million.

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