Private Equity Week Wire for Friday 3-1

MALVERN, PA — City Signal Communications (CSC), delivering flexible metropolitan dark fiber networks in key Mid-Atlantic and Midwest markets of the United States, today announced that it has closed a $17 million third-round equity investment, led by MC Venture Partners and included additional investment by BB&T Capital Partners.
As a result of the equity investment, CSC plans to complete construction of its networks in Philadelphia, PA, Cleveland, OH and Columbus, OH, and further expand its staff and utilize the funds for general corporate use.

RYE, NY — Mobius Management Systems Inc. (Nasdaq:MOBI), a leading provider of Web-based software for managing enterprise content as a strategic asset, today announced it has appointed Mr. Arthur J. Marks, 57, a General Partner of Valhalla Partners, a private equity firm, to its Board of Directors, effective immediately.
Mr. Marks’ appointment is the second board appointment in two weeks, bringing the total number of board members to seven.

SPRINGFIELD, MO — Decorize Inc. (OTC Bulletin Board: DCRZ), an emerging-growth provider of direct sourcing solutions for the global home decor market, announced today that two private placement funds have increased their beneficial ownership of Decorize’s common stock. This investment, in combination with a purchase of additional shares by one of the Company’s Directors, has raised an aggregate amount of $1.3 million in net proceeds.

SUNNYVALE, CA — Loudcloud Inc. (Nasdaq:LDCL), the leading managed services provider, today announced that it has signed a definitive agreement to acquire Frontera Corporation, a privately-held managed services provider located in Los Angeles, California. Frontera’s customers include Pioneer Electronics, Conseco, Wherehouse Music and Coach, Inc.

Pursuant to the agreement, Loudcloud will acquire Frontera in an all stock transaction. Completion of the transaction is subject to customary closing conditions, including Frontera stockholder approval and regulatory approvals. The transaction is expected to close in the second quarter of 2002.

— Legg Mason Wood Walker, Inc. announced that Pat La Vecchia joined its Investment Banking Department as a managing director and head of the private finance and sponsors group.
Prior to joining Legg Mason, Mr. La Vecchia was senior managing director at Hawk Holdings, LLC, a technology and holding company; head of global private corporate equity placements at Credit Suisse First Boston Corp. and head of private equity placements at Bear Stearns, Inc. He graduated magna cum laude and Phi Beta Kappa from Clark University and has an MBA from the Wharton School of the University of Pennsylvania with a major in finance and a concentration in strategic planning.

ANDOVER, MA — CMGI Inc. (Nasdaq: CMGI) and its majority-owned subsidiary Engage, Inc. (Nasdaq: ENGA) today jointly announced that both companies and Engage’s board of directors have been named in a lawsuit. The lawsuit specifically concerns, among other things, four of the six proposals discussed in Engage’s proxy statement dated February 20, 2002 to be voted upon at Engage’s annual meeting.

The plaintiffs allege a breach of fiduciary duty by CMGI and Engage’s board of directors, as well as seek to enjoin Engage from effecting a proposed reverse stock split and the issuance of shares to CMGI upon conversion of promissory notes issued by Engage to CMGI. CMGI believes there is no merit to the complaint.

PALO ALTO, CA — Essex Property Trust, Inc. (NYSE:ESS) today announced the final closing of the Essex Apartment Value Fund LP. The Fund has nine different institutional investors including Essex with combined equity commitments of $250 million. In addition, the Fund may utilize leverage of approximately 65 percent of the value of the underlying real estate portfolio, allowing it to acquire or develop real estate up to $700 million.

INDIANAPOLIS — Monument Advisors Inc. and the executive management team, have completed the acquisition of Carmel-based One Call Communications. One Call Communications is recognized as a leading provider of telecommunications services and products throughout the United States and Canada. One Call CEO, Joseph Pence, along with Brad Benge, Executive Vice President, Mark Speth, CFO and Ann Bernard, General Counsel, have invested alongside Monument in the buy-out. The Indianapolis law firm of Ice Miller represented the acquisition team.

Monument and management, in partnership with Johnson Ventures 1, CID Equity Partners, PNC BusinessCredit and Fifth Third Bank have teamed up to purchase substantially all of the operating assets relating to One Call’s Long Distance and Operator Services Divisions. One Call has historically ranked as one of Indiana’s top 100 privately held companies.

CULVER CITY, CA — iVAST, Inc., the leading end-to-end platform provider for MPEG-4 interactive media, today announced that Carl Rosendahl, managing director for Mobius Venture Capital and iVAST board member, was named chairman of iVAST’s board of directors. An Academy Award and Emmy Award winner, Rosendahl founded Pacific Data Images (now part of DreamWorks SKG). Rosendahl was recently named to Upside Magazine’s Elite 100 List. Rosendahl’s expertise and global contacts in technology venture capital and the entertainment industry will provide the company with unparalleled leadership in the global MPEG-4 content publishing and distribution industry.

For yesterday’s Wire, click here

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