PE Week Wire — Friday, June 25

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America Online Inc. has agreed to acquire Advertising.com Inc., a Baltimore-based provider of interactive marketing services, for $435 million in cash. Advertising.com currently is in registration for a $100 million IPO, although registration papers are expected to be withdrawn in concert with the acquisition close later this summer. Advertising.com had raised over $68 million in total VC funding since its 1998 inception, including a $57 million infusion in 2000 at a post-money valuation of approximately $250 million. Company shareholders include Grotech Capital, New Enterprise Associates, RVC Europe and Blue Chip Venture Co. www.advertising.com

Adveq Management AG, a Zurich-based fund-of-funds manager, has held a $325 million final close on its Private Equity Technology Partners IV fund. The vehicle will acquire limited partner stakes in VC funds that focus on technology startups in the United States. www.adveq.com

Cabela’s Inc., a Sidney, Neb.-based retailer of hunting, fishing and camping merchandise, will begin trading on the NYSE under ticker symbol CAB. The company priced over 7.81 million shares of common stock at $20 per share (above its original $15-$17 offering range), for a total IPO take of approximately $156.25 million. Last September, the company entered into a recapitalization transaction led by JPMorgan Partners. www.cabelas.com

Wireless Services Corp., a Bellevue, Wash.-based provider of outsourced wireless communications services, has raised $8.5 million in Series B funding. Ignition Partners led the deal, and was joined by return backers SeaPoint Ventures, Madrona Venture Partners and Northwest Venture Associates. www.wirelesscorp.com

  

Golden Gate Capital has acquired New York-based catalog and direct marketing company Newport News from Spiegel Inc. (OTC BB: SPIEGEL). No deal terms were disclosed, except that Newport News management participated on the buyout. www.newport-news.com

Dow Jones is reporting that Carlyle Group, Cinven and BC Partners are among the private equity shops expressing an interest in acquiring VNU NV‘s telephone directories business. 

American Capital Strategies Ltd. has invested $10 million of senior subordinated debt into a recapitalization of Valley Proteins Inc., a Winchester, Va.-based recycler of food processing by-products. US Bank NA and a syndicate of unnamed lenders are providing a revolving credit facility and senior term loan as part of the transaction. Valley Proteins management will retain its ownership of the company.  

Motive Inc., an Austin, Texas-based provider of online customer support software, will begin trading on the Nasdaq under ticker symbol. The company yesterday priced five million shares of common stock at $10 per share (low end of its original $10-$12 range, below its revised $11-$13 range), for a total IPO take of approximately $50 million. The company had raised around $70 million in VC funding from investors like Austin Ventures, Accel Partners, Miko Ventures, SSM Ventures and the Techxas Fund. www.motive.com

MortgageIT Inc., a New York-based residential mortgage lender, is postponing its proposed $250 million IPO. Significant company shareholders include ING Capital and Sandler Capital Management. www.mortgageit.com

Egenera Inc., a Marlborough, Mass.-based provider of utility computing solutions, has filed to raise $125 million via an IPO of common stock on the Nasdaq under proposed ticker symbol EGEN. The company has raised $124 million in total VC funding since its 2000 inception, including a $30 million Series D infusion earlier this year. Significant shareholders include Austin Ventures, CSFB Private Equity, Crosslink Venture Capital, Goldman Sachs, Kodiak Venture Partners, Spectrum Equity Investors and Technology Crossover Ventures. www.egenera.com

 

Greenfield Online Inc., a Wilton, Conn.-based provider of online survey solutions to the global marketing industry, has set its IPO offering price range to $13-$15 per common share, and its total number of offered shares to five million. The company has raised over $35 million in VC funding since its 1995 inception, with significant shareholders including Insight Venture Partners, UBS Capital and MSD Ventures. The company had originally filed for an $86.25 million IPO in March 2000, but withdrew the offering in December 2000 due to adverse market conditions. www.greenfield.com

Lumera Inc., a Bothell, Wash.-based developer of polymer materials, has set its IPO offering price range to $5-$6 per common share, and its total number of offered shares to five million. The company was founded in early 2000 as a majority-owned subsidiary of Microvision Inc. (Nasdaq: MVIS), and later raised over $27 million in VC funding from such firms as Cisco Systems Inc., The Barksdale Group, Acorn Ventures and WRF Capital. www.lumera.com

 

Earl Yen, a former managing director with Ascend Venture Partners, has been suspended by new employer Citigroup, according to various press reports. He and Margaret Ren, daughter-in-law of Chinese Prime Minister Zhao Ziyang, have been charged by the bank with presenting false information to both the bank and its regulators.

John Mack has resigned from his co-CEO post with Credit Suisse First Boston, effective in mid-July. The move will leave Oswald Grubel as the bank’s sole chief executive. www.csfb.com

 

Windstone Capital, a Phoenix-based investment bank affiliated with Fox & Co. Investments Inc., has formed a $150 million private equity fund that will invest in small and mid-cap public companies. The fund is named Windstone Opportunity Partners, and expects to begin making investments this September. Richard Freeman, a former managing director with Century Capital Management in Boston, will relocate to Phoenix and serve as the fund’s managing general partner. www.wcp.cc

Enterprise Investors, a Warsaw, Poland-based private equity firm, has closed its fifth fund with €300 million. Limited partners include AlpInvest, Bank Austria Creditanstalt, CalPERS, EBRD, EIF, MetLife and Partners Group. www.ei.com.pl

Uniflex Inc., a Hicksville, N.Y.-based maker of specialized plastic bags for advertising promotions, has filed for Chapter 11 bankruptcy protection. The company was recapitalized in 1999 by RFE Investment Partners.

 

  News from Thursday 6/24

Emphasys Medical Inc., a Redwood City, Calif.-based medical device company focused on emphysema, has raised $27.5 million in Series D funding. OrbiMed Advisors LLC led the deal, and was joined by fellow new investor Morgan Stanley Venture Partners. Return backers included Advanced Technology Ventures, ABS Ventures, Morgenthaler Ventures and St. Paul Venture Capital. The company has raised over $60 million in total VC funding since its 2000 inception, including a $21.5 million Series C round in 2003 at a post-money valuation of approximately $43 million. www.emphasysmedical.com

SalesForce.com Inc. (NYSE: CRM) experienced a 56.4% stock surge on its first day of trading. The company had priced its IPO at $11 per share, but closed out yesterday at $17.20 per share. Prior to its IPO, the company had raised around $64 million in total VC funding, with significant investors including Attractor Investment Management and Magdalena Yesil, a general partner with U.S. Venture Partners.

Air Canada has accepted a $250 million investment proposal from Cerberus Capital Management. The deal involved convertible preferred stock, and comes in addition to the $850 million Air Canada had previously raised through a Deutsche Bank-led stand-by purchase agreement.

RaySat Inc., a McLean, Va.-based provider of satellite antennas, has raised $10 million in first-round funding. Benchmark Capital led the deal, and was joined by Seed Partners. www.raysat.com

 

Mark Logic Corp., a San Mateo, Calif.-based developer of an enterprise-class database for unstructured content, has raised $12 million in Series B funding. Lehman Brothers Venture Partners led the deal, and was joined by return backer Sequoia Capital. In related news, Tom Banahan of Lehman Brothers will join the Mark Logic board of directors. www.marklogic.com

 

RealVue Simulation Technologies Inc., an Austin, Texas-based provider of simulation solutions for employee training, has raised $7.5 million in new Series B funding, which closes out the round at $12.5 million. Austin Ventures led the deal, and was joined by return backers Walden VC and SI Ventures. www.relvue.com

 

Fulcrum Pharmaceuticals Inc., Las Vegas-based drug company, has raised $8 million in its first institutional round of VC funding. Third Point Management Co. led the deal, and was joined by Fujisawa Investments for Entrepreneurship. www.fulcrumpharmaceuticals.com

 

Emulation and Verification Engineering Inc., a provider of intellectual property and hardware-assisted verification solutions for complex integrated circuits, has raised $7.2 million in Series B funding. French VC firm Auriga Partners led the deal, and was joined by fellow new investor Rothschild. Return backers included 3i Group, Credit Lyonnais Private Equity and Siparex. EVE has offices in both San Jose, Calif. and Palaiseau, France. www.eve-team.com

 

Nanostellar Inc., a Menlo Park, Calif.-based provider of platinum nano-composite catalyst solutions, has raised $3 million in first-round VC funding. 3i Group led the deal, and was joined by Frank Marshall, former vice president and general manager of Cisco System’s core products business group, and William Miller, former chairman of Borland Software Corp. and former vice president and provost of Stanford University. In related news, David Aslin, a general partner with 3i Group, has joined the Nanostellar board of directors. www.nanostellar.com

 

Citizens Communications Co. (NYSE: CZN) failed to secure a pair of expected buyout bids by yesterday’s 5pm deadline, according to various press reports. One group was comprised of Blackstone Group, Thomas H. Lee Partners and J.P. Morgan, while the other included Carlyle Group, Providence Equity Partners, Madison Dearborn Partners and Kohlberg, Kravis, Roberts & Co. Each bid was expected to be worth between $3.5 billion and $4 billion (including debt).

Kohlberg & Co. has agreed to acquire Stanadyne Corp., a Windsor, Conn.-based provider of technology and services for engine components and fuel systems. No terms were disclosed on the deal, which is expected to close during the third quarter. The primary selling shareholder is American Industrial Partners, which acquired Stanadyne in December 1997.

Summit Partners has led a recapitalization of Tippman Pneumatics Inc., a Ft. Wayne, Ind.-based maker of paintball markers and accessories. No deal terms were disclosed, except that the Tippman family will retain a “significant minority interest.” In related news, the company plans to change its name to Tippman Sports LLC, and has named Howard Kosick as president and CEO.  www.tippmann.com

HIP Health Plan of New York. has agreed to acquire ConnectiCare Holding Co. from The Carlyle Group and Liberty Partners. The deal is subject to regulatory approval, and is expected to close this year. No financial terms were disclosed. ConnectiCare is a Farmington, Conn.-based managed care company. It completed a recap in June 2001 that involved both Carlyle Group and Liberty Partners. www.connecticare.com

Onex Partners, the private equity investment affiliate of Onex Corp. (TSX: OCG) has completed a Cdn$110 million (approx. US$81.67 million) equity investment in ResCare Inc., which grants Onex a 30% ownership position. www.rescare.com   

ELoyalty Corp. (Nasdaq: ELOY) has agreed to acquire substantially all the assets of Interelate Inc., an Eden Prairie, Minn.-based provider of customer analytics solutions. The deal includes a $4.9 million cash payment, plus the value of working capital at closing, which is expected to occur in the third quarter. Interelate has raised around $75 million in total VC funding since its 1999 inception. Investors included Unterberg Towbin, Dell Ventures, Carlson Marketing Group, Great Hill Equity Partners and William E. Simon & Sons Ltd. www.interelate.com  

McCormick & Schmick Holdings LLC, a Portland, Ore.-based operator of upscale seafood restaurants, has set its IPO offering price range to $14-$16 per common share, and its number of offered shares to 10 million. The company’s controlling shareholders are Castle Harlan Partners and Bruckman, Rosser, Sherrill & Co., which acquired McCormick & Schmick in August 2001. www.mccormickandschmicks.com

Premier Foods LLC, a UK-based food and drink company owned by Hicks, Muse, Tate & Furst, is considering a £1.2 billion flotation, according to The Guardian. Other news reports suggest that, if the floatation fails, Hicks Muse might merge Premier Foods with other portfolio companies like Weetabix Ltd. and Eubisco. www.premierfoods.co.uk 

 

Xyratex Group Ltd., a Havant, UK-based provider of data storage sub-systems and storage process technologies, will begin trading on the Nasdaq under ticker symbol XRTX. The company priced over 6.95 million common shares at $14 per share, for a total IPO take of approximately $97.4 million. The company has received VC funding from HgCapital and Aberdeen Murray Johnstone Private Equity. www.xyratex.com

 

 

Jim Treinor has been tapped to replace Frank Fernandez as private equity investment chief for the Florida State Board of Administration. He previously served under Fernandez as a junior portfolio manager, and will report to Bill James, Florida’s senior investment officer for alternative investments.

Lizette Perez-Deisboeck has joined Goodwin Proctor LLP as a Boston-based partner in the firm’s technology and emerging companies practice. She previously served as vice president of legal affairs and operations for Idealab. In other Goodwin Proctor news, the firm has added Victoria Schonfeld as a partner in its financial services group. She previously served in the investment management practice of Wilmer Cutler & Pickering. www.goodwinproctor.com

Duke Street Capital has promoted both Sharon Corper and John Harper to the position of director. Corper joined Duke Street in 1989, and is responsible for fundraising and investor relations. Harper came aboard in 2000 from HSBC Private Equity, and has worked on mid-market private equity transactions.

R.J. Reynolds Tobacco Holdings Inc. has proposed that Betsy Atkins serve on the board of a new company formed once the merger of R.J. Reynolds and Brown & Williamson Tobacco Corp. is complete. Atkins is a serial corporate director and CEO of Baja Ventures.  

Kohlberg, Kravis, Roberts & Co. has hired Saturnino Fanlo to run its proposed business development company, according to The Deal. Fanlo is the former treasurer of Wells Fargo & Co., and manager of the firm’s investment portfolio.

 

Alain Couder has joined Sofinnova Ventures as an IT venture advisor, and will take board seats with Sofinnova portfolio companies Corrente, Atomz and Vitra. He most recently served as CEO of Confluent Software Inc., which was acquired by Oblix earlier this year. www.sofinnova.com

 

Prospect Partners LLC has closed its second fund with $165 million in limited partner commitments. The Chicago-based firm plans to continue its focus on management-led acquisitions of lower mid-market companies with niche strategies. LPs in the new fund include Goldman Sachs, GM Investment Management Corp., JP Morgan Fleming Asset Management, University of Notre Dame, Wilshire Associates, Private Advisors and the Northern Trust Corp. www.prospect-partners.com

Thoma Cressey Equity Partners has opened a satellite office in Boston. The Chicago-based buyout firm said that the new office will focus on healthcare investments, and will be led by TCEP partner David Mayer, who relocated from Chicago. TCEP also features a San Francisco office. www.thomacressey.com

MediaLive International Inc. has canceled its 2004 Comdex exhibition in Las Vegas. The company does plan to continue running smaller Comdex events in other locations.

 

    News from Wednesday 6/23

 

Rejuvenon Corp., drug company based in The Woodlands, Texas, has raised $37 million in Series B funding. Schroder Ventures Life Sciences led the round, and was joined by fellow new investors Boston Millennia Partners, Cogene BioTech Ventures, Orbimed Advisors and Prospect Venture Partners. Return backers included BCM Technologies (affiliated with the Baylor College of Medicine), Burrill & Co. and Novo A/S. The Trout Group advised Rejuvenon on the deal, which is a follow-up to a $12 million Series A deal raised in 2001 at a post-money valuation of approximately $18 million. In related news, Rejuvenon has bolstered its board of directors by adding Lutz Giebel of Schroder, Robert Mashal of Boston Millennia and Carl Gordon of Orbimed. www.rejuvenon.com

Konarka Technologies Inc., a Lowell, Mass.-based developer of solar energy products, has raised $18 million in Series C funding. New Enterprise Associates led the deal with a $3.6 million investment, and was joined by fellow new investors Vanguard Ventures, Partech International, Prime New Energy, SDL Ventures, Good Energies and Presidio Venture Partners. Return backers included Draper Fisher Jurvetson, Zero Stage Capital, ChevronTexaco Technology Ventures, Eastman Ventures, Ngen Partners and Ecole Polytechnique Federale De Lausanne. www.konarkatech.com

Evercore Investment Corp., a business development company (BDC) sponsored by Evercore Partners, has set its IPO offering price range to $15 per share, and its total number of offered shares to 20 million. This is a downsizing from the BDC’s original N-2 filing, which originally estimated that the deal would generate $460 million.

PTC Therapeutics Inc., a South Plainfield, N.J.-based drug company focused on post-transcriptional control mechanisms, has raised $15 million in new Series E funding. The company had held a $35 million first close on the round last December. CSFB Private Equity and HBM BioVentures co-led the deal, and were joined by return backers Bay City Capital, Delphi Ventures, Hansa Special Opportunities Fund, HealthCap, Novo A/S and Vulcan Capital. New investors included Genavent Partners LP, Novartis BioVentures and POSCO BioVentures. www.ptcbio.com

Vantage Oncology Inc., an El Segundo, Calif.-based developer and operator of radiation oncology centers, has raised $15 million in second-round funding. New Enterprise Associates led the deal with a $7.7 million investment, and was joined by return backers Versant Ventures, Conning Capital Partners and Salix Ventures. In related news, Chip Linehan of NEA will join the Vantage Oncology board of directors. www.vantageoncology.com

Xanodyne Pharmacal Inc., a Florence, Ky.-based drug company focused on cancer and pain management, has raised $20 million in Series C funding, according to an SEC filing. Shareholders include Essex Woodlands Health Ventures and HealthCare Ventures. www.xanodyne.com

Proteus Biomedical Inc., a Menlo Park, Calif.-based provider of MEMS for the treatment of congestive heart failure, has raised $6.3 million in new Series B funding. The company previously had announced a $5.3 million first close on the deal. New investors on the second tranche include The Carlyle Group and Kaiser Permanente Ventures, while the overall round also features Adams Street Partners, Fletcher Spaght Ventures, Asset Management Co. and Spring Ridge Ventures (which incubated Proteus and served as its sole Series A investor). www.proteus.bz

Infopia Inc., a Salt Lake City-based provider of e-commerce software for online businesses, has closed out its $3 million Series A round. Trans Pacific Partners and B.C. Partners co-led the deal. www.infopia.com

Upstream Technologies LLC, a New York-based provider of investment management technology to asset managers, has received a strategic investment from Credit Suisse First Boston. No deal terms were disclosed. www.upstream.net

 

Newsstand Inc., an Austin, Texas-based provider of digital content delivery solutions, has raised $7.2 million in new VC funding. Adams Capital led the deal, and was joined by Noro-Moseley Partners, SSM Ventures and The New York Times Co. www.newsstand.com

 

NewsGator Technologies Inc., a Denver-based provider of content aggregation tools and services, has received an undisclosed amount of Series A funding from Mobius Venture Capital. www.newsgator.com 

 

SavaJe Technologies Inc., a Chelmsford, Mass.-based provider of mobile telephony software, has raised $40 million in new VC funding, according to The Wall Street Journal. Strategic investors Deutsche Telekom AG, Vodafone Group PLC and Orange (a division of France Telecom SA) joined unnamed VC investors.

 

Frederick and David Barclay have agreed to acquire the UK publishing assets of Hollinger International Inc. (a.k.a. The Telegraph Group) for approximately $1.2 billion. The brothers previously had tried to buy Hollinger chief Conrad Black‘s majority stake in the entire company, but were turned down by a Delaware bankruptcy judge. 3i Group PLC also was reported to have bid on the deal.

Hg Capital is preparing to bid £370 million for the Odeon movie theater chain, according to The Times of London. www.odeon.co.uk

CCS Medical, a portfolio company of Denver-based KRG Capital Partners, has agreed to acquire Roanoke, Va.-based Matria Pharmacy and Lab Supplies from parent company Matria Healthcare Inc. (Nasdaq: MATR). The deal is valued at $130 million, and is subject to various regulatory approvals. www.matria.com/learn/pharmacy

Trinity Hospice LLC, a portfolio company of Denver-based KRG Capital Partners, has acquired Mercy Hospice, which has three locations in Missouri. www.trinityhospice.com

 

eBay Inc. (Nasdaq: EBAY) has agreed to acquire Baazee Inc., a Mumbai, India-based online marketplace operator. The deal is valued at approximately $50 million, plus acquisition costs and post-singing adjustments. Baazee has raised around $25 million in VC funding from investors like ChrysCapital Management, Global Bridge Ventures, ICICI Venture Funds Management and Newbridge Capital.

Zimmer Holdings Inc. (NYSE: ZMH) has completed its acquisition of Implex Corp., an Allendale, N.J.-based provider of orthopedic implant products. The initial payment is valued at $108 million, with future payments contingent on performance milestones. Implex investors included Meridian Venture Partners, Biomet-Merck, C.R. Bard, Oracle Strategic Partners, Innocal and company management. www.implex.com

  

Color Kinetics Inc., a Boston-based developer of solid-stage illumination technologies, will begin trading on the Nasdaq under ticker symbol CLRK. The company priced four million shares at $10 per share (below its original $11-$13 range), for a total IPO take of approximately $40 million. The company has raised over $47 million in total VC funding since its 1997 inception, including a $13 million Series D round earlier this year. Investors have included Needham Capital Partners, Armen Capital Management, ThinkEquity Investment Partners, SAC Capital Advisors and Deutsche Bank.  www.colorkinetics.com

Salesforce.com Inc., a San Francisco-based provider of on-demand customer service relationship solutions, will begin trading on the NYSE under ticker symbol CRM. The company priced 10 million shares at $11 per share (above its original $7.50-$8.50 range), for a total IPO take of approximately $110 million. The company had raised around $64 million in total VC funding since its 1999 inception, with significant investors including Attractor Investment Management and Magdalena Yesil, a general partner with U.S. Venture Partners. www.salesforce.com

  

E. Stockton Croft has been named a director in the private equity group of Atlanta-based Crescent Capital Investments. He most recently served as a managing director and partner with Argonne Capital Group LLC, and as co-founder, president, CFO and director of BSC Ventures. In other Crescent news, the firm has added J.W. Ransom James as a senior associate. He comes to Crescent after working as an associate in the leveraged finance group of Merrill Lynch & Co. www.crescentcapital.com

 

Matthew Nordan has joined nanotech consultancy Lux Research as vice president of research. He is the former head of Forrester Research’s North American project consulting business.

 

Frederick Schneider has joined Pasadena Capital Partners as a senior managing director. He already served as an advisory partnership executive to the firm, and had previously served in principal and chief financial officer roles with Leonard Green & Partners, where he worked with Pasadena founder Gregory Annick (a former Leonard Green partner). www.pasadenacapital.com

Charles Riceman has joined Golub Associatesas a principal. He previously served as a vice president at Albion Alliance LLC, where he originated, executed and supervised subordinated debt and equity investments for two private equity partnerships. www.golubassoc.com

Mark Hopkinshas joined