PE Week Wire — Friday 8/30

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SupplyScience Inc., a provider of store-based demand forecasting and replenishment software, has closed on its Series C Round of financing. Investors in the round include; Israel Seed Partners, Israel Infinity Venture Capital, and Millennium 3 Opportunity Fund, as well as private investors. All were returning investors from earlier rounds.

Troubled French media group Vivendi Universal began selling off core assets yesterday as it received 142.7 million Euros ($141M) for its stake in French Internet portal Vizzavi from co-owner Vodafone. Next up is expected to be a multi-billion auction for Vivendi’s Houghton Mifflin publishing group. Some reports indicate that Blackstone Group and TH Lee Partners are among the leading bidders so far.

u-Nav Microelectronics, an Irvine, Calif.-based developer of the world’s smallest and lowest power global positioning satellite (GPS) integrated circuits, today announced that it has received $10 million in its second round of financing. Led by Shelter Capital Partners and Danske Venture Partners, the round also included investments from iSherpa Capital and Startupfactory.

The SMEs Venture Capital Fund has agreed to invest one million baht capital or 50% of the registered capital of software developer Arunsawad Dot Com Co, according to the Bangkok Post. The two-year-old Bangkok-based company provides businesses with web page and web application design and multimedia software development

French News Digest is reporting that German venture capital subsidiary of German telecommunications company Deutsche Telecom, T-Telematik Venture, has spin off shares in French Internet demographics, usage statistics and market research service provider NetValue. After the shares spun off, T-Telematik lost all its voting rights in NetValue. NetValue is listed on the new market of Euronext.
News From Thursday 8/29

Weil, Gotshal & Manges LLP announced today that Charles Robins and James Westra will join the firm’s private equity practice, and that the firm will establish a Boston office effective September 1. Robins and Westra are currently partners with Hutchins, Wheeler & Dittmar in Boston, where they manage the private equity practice. They will be joined by fellow partners Steven M. Peck, Marilyn French, David P. Kreisler, Joseph H. Newberg and James L. Messenger who are also Hutchins Wheeler partners and Andrew Troop who will be Counsel at Weil Gotshal. Weil Gotshal’s Boston office will have 17 attorneys, and Mr. Westra will be the Managing Partner. Among the clients being brought over to Weil Gotshal will be TH Lee Partners, Highland Capital Partners and Summit Partners.

Color Kinetics Inc., a Boston-based provider of intelligent LED-based illumination technologies has raised $17 million in a recent round of venture capital financing.

GlobeRanger, a Richardson, Texas-based provider of wireless supply chain solutions, has received $9.7 million in venture capital funding. The Series B investment was led by HO2 Partners, with participation by Sevin Rosen Funds, CenterPoint Ventures and Marsh & McLennan Capital.

Dow Jones is reporting that former Schroder Ventures K.K. investors Takaaki Kawashima and Nobuo Matsuki are launching a large buyout fund aimed at capitalizing on corporate restructuring in Japan. The report says that a 10 billion Yen (approx. $850 million)) first close is expected today from Japan-based investors. Foreign LPs are expected to come in on the next close. The firm is hoping to raise a total of 50 billion Yen (approx. $4.25 billion).

Divine Inc., (Nasdaq: DVIN ), a provider of solutions for the extended enterprise, today announced that it has closed the second financing placement led by Oak Investment Partners following the approval of the terms of the transaction during a special meeting of stockholders on Tuesday, August 27, 2002. With this action, Divine has completed the $61.6 million Oak-led equity investment. Also at the meeting, stockholders approved the Divine 2002 Employee Stock Purchase Plan.

Matrix NetSystems, an Austin, Texas-based provider of Internet Performance Measurement and Management services, announced that G. Jackson Tankersley Jr., Principal & Founder of Meritage Private Equity Funds, and Art Zeile, Co-Founder & Chief Executive Officer, InFlow Inc., will join the company’s board of directors.

BluePoint Energy Products Inc. has now closed on the previously announced $5.9 million finance facility with Calim Private Equity LLC of Aspen, Colorado. BluePoint will have immediate access to funds from the initial $500,000 Stage One Convertible Bridge Note. The first stage of funding will be used primarily to acquire inventory and support initial sales development of the company’s technology-based power generation products. The finance facility includes an additional $1.5 million in five-year Convertible Bonds for a Stage Two level of funding. Each level of financing also contains a combination of warrants and common stock bringing the total investment to a maximum of $5.93 million.

Synopsys Inc. (Nasdaq:SNPS) has signed a definitive agreement to acquire all outstanding shares of Co-Design Automation, a privately held verification company focused on improving the designer’s ability to efficiently create and verify system-on-chip (SoC) designs. Co-Design Automation has received venture capital funding from Altera Corp., Intel Capital and Redwood Venture Partners.

Cardinal Capital Management Inc. has brought XStream Beverage Group Inc. (OTCBB:XSBG) into its portfolio. The incubator relationship is a first for Cardinal, though the firm has long given private investors access to public offering shares. Cardinal has signed a firm commitment letter to provide Xstream Beverage with funding of $10 million, including $3 million in equity financing and $7 million in a secondary offering.

News From Wednesday 8/28
Hatteras Networks, a Triangle Park-based developer of last-mile carrier access platforms, today announced the closing of an additional $45 million in venture capital funding. Led by Grotech Capital Group and fully supported by existing investors Bessemer Venture Partners, Columbia Capital, and ComVentures, the new round raises the company’s total capital investment to date to more than $73 million. The company intends to use the money to fund carrier product trials and the ongoing development and sales of its Access Class Ethernet platform. The deal is designed to bring the company to cash flow positive.

RCN Corp. (Nasdaq: RCNC) announced that it has reached a definitive agreement to sell the New Jersey cable systems it inherited on Oct. 1, 1997 from its spinout from the former C-TEC Corp., for $245 million in cash to private equity firm Spectrum Equity Investors and long-time cable entrepreneur Steve Simmons. The New Jersey systems are among the few cable systems that RCN did not build itself and that RCN operates outside a major metropolitan market.

GKM Ventures has received approval from the U.S. Small Business Administration for its venture capital fund to operate as an SBIC (Small Business Investment Company). GKM Ventures becomes one of only 20 SBIC licenses granted so far this year. This approval will create a $50 million venture capital fund. Under the direction of managing partner Jonathan Bloch and partner John Morris, the Fund invests in early through later-stage information technology companies located primarily in the southwestern U.S. Investments are focused in communications, software and digital media enabling technologies. GKM Ventures has a close working relationship with Gerard Klauer Mattison, the New York based institutional research and investment banking firm, which is a minority investor in the Fund.

Incepta Ventures is closing shop, according to a story in the Seattle Post-Intelligencer. Incepta, which has invested $140 million since being founded three years ago, will lay off all 19 employees. The closing is attributed to the economic meltdown in Incepta’s targeted telecom space.

Johnson Outdoors Inc. (Nasdaq: JOUT), a world leader in branded outdoor recreation products, today announced that it has reached an agreement for the sale of its Jack Wolfskin subsidiary based in Idstein, Germany for 64.0 million Euros ($62.7 million U.S. Dollars [USD] at current exchange rates), to Bain Capital, a global private investment firm. Jack Wolfskin is a marketer of outdoor clothing, footwear and equipment. Closing on the sale is subject to German regulatory approval, which is expected within the next 30 days.

Motion Computing Inc., an Austin, Texas-based developer of ultra-mobile computing and wireless communications, today announced $6.5 million in Series A funding. The funds are earmarked to build out Motion’s sales and marketing organizations and support the scheduled Nov. 7 launch of its first product, an innovative, slate-like Tablet PC. Led by Compal Electronics of Taiwan — Motion’s strategic design and manufacturing partner and the world’s largest contract manufacturer of notebook computers — the investment group also includes institutional investor G51 Capital of Austin and the company’s founders.

Wells Fargo Securities has added Will Lewis to its New York office as senior vice president and head of Private Capital. He will manage private placements and Private Investment and Public Equity Securities (PIPEs). Before joining Wells Fargo Securities, Lewis was with Robertson Stephens, where he specialized in the medical devices and biopharmaceutical sectors.

The Enstar Group Inc. (OTC Bulletin Board: ESGR) has funded a $21 million capital call under the terms of its November 2001 transaction with Castlewood Holdings Ltd., its partially owned equity affiliate. As part of the 2001 transaction, Enstar and Trident II LP each made capital commitments of $39.5 million to Castlewood Holdings. After today’s equal funding by Enstar and Trident, the remaining capital commitment to Castlewood Holdings is approximately $6 million each. Trident is a private equity fund managed by MMC Capital Inc., a wholly owned subsidiary of Marsh & McLennan Companies Inc. The funds are being used, in part, to capitalize Bermuda-based reinsurance group Fitzwilliam (SAC) Insurance Ltd.

The California Public Employees’ Retirement System (CalPERS) found shelter in an 11.8 percent real estate return this past fiscal year, reducing the fund’s average losses to 5.9 percent in a bear market. The pension fund ended the fiscal year with assets valued at $143.4 billion. CalPERS’ private equity investments posted a 7.8 percent loss, below its hurdle rate but far better than the average private equity market. According to data released by Venture Economics, private equity investments lost 14.6 percent in the first nine months of the 2001-02 fiscal year. U.S. and international public equities represent approximately 57 percent of CalPERS assets. U.S. and international bond investments represent 29 percent; real estate 9 percent, and private equity investments represent 5 percent of assets.

eFinancialNews is reporting that Nesbic, the Dutch private equity firm owned by insurer Fortis, is negotiating a reduction in the size of the 250 million Euros ($244 million) CTe fund it closed in April 2000 to invest in Internet-related companies. The story said investors expect a cut of approximately 100 million Euros.

CustomerLinx Corp., an outsourcing company specializing in business process outsource (BPO) and customer relationship management (eCRM) services, together with Impact Solutions LLC, a New York private equity firm, have entered into an agreement to expand CustomerLinx’s service offering by acquiring BPO and eCRM companies in India. The expanded operations will provide CustomerLinx’s existing customers and Fortune 1000 companies with expanded eCRM and BPO outsourcing services, at very compelling price points. The Indian operation is expected to be operational in 90-120 days.

News From Tuesday 8/27

MicroVention Inc., a developer, manufacturer and marketer of minimally invasive treatments for cerebral vascular diseases, today announced it recently closed a $19 million round of Series D venture capital funding. Capital raised in this round brings total financing in MicroVention to approximately $43 million. U.S. Venture Partners led the investment. Also participating were A.G. Edwards Capital and previous investors Crosspoint Venture Partners, Advanced Technology Ventures, De Novo Ventures, Delphi Ventures and Asset Management Partners.

Agribuys has successfully closed $5 Million in Series “C” funding. Demonstrating their commitment to the Agribuys business model, management team and market opportunity, Rustic Canyon Ventures led the latest funding round. Internet Capital Group (NASDAQ: ICGE) also participated in the round.

Baring Private Equity Partners, a leading international private equity asset manager, today announced that the Baring European Private Equity Fund and the Baring Iberia Fund have successfully sold their stakes in Isolux Group, an international engineering contractor based in Spain. The Company was acquired by its management team, led by chairman, Luis Delso, and chief executive Jos