Private Equity Week Wire for Monday 10/1

ALEXANDRIA, VA — Riptech Inc., the premier provider of scalable, real-time managed security services, today announced that it has received $21 million in funding, including a $18 million investment led by Broadview Capital Partners, a Silicon Valley based private equity investment firm. Existing investors Columbia Capital and Providence Equity Partners Inc. participated in the investment. The total includes $2.75 million in additional financing secured from Comerica Bank.
Stephen Bachmann, managing director of Broadview Capital Partners, will join Riptech’s board of directors.


MENLO PARK, CA — Charles River Ventures (CRV) today announced that Dave Newman, founder and vice president of engineering of Alidian Networks, and Warren Weiss, former president and CEO of Asera, have joined the firm as venture partners. Newman will focus on investments in the data communications sector. Weiss, who will work on a consulting basis, will focus on investments in the software and services sectors. Both are based in the firm’s Menlo Park office.

WARREN, NJ — Celiant Corp., a new company that is already the largest supplier of wireless power amplifiers in the United States, today announced it would begin to sell its radio frequency infrastructure subsystems globally to all wireless network systems providers.

Celiant was created as an independent venture from a Bell Labs group and Lucent Technologies’ (NYSE: LU) power amplifier division, which had previously sold products only to Lucent. About 140 of Celiant’s 200 owner/employees had been Bell Labs scientists and engineers with years of expertise in wireless and telecom equipment design, and Celiant’s high efficiency wireless infrastructure products are backed by more than 300 Bell Labs patents and patent applications.

Celiant also announced it had received a $50 million investment from Pequot Capital, a leading venture capital and private equity fund headquartered in Westport, Ct.
Power amplifiers are critical radio frequency components in the base stations of wireless network systems. A base station, located at the base of a cellular antenna, is an electronic system that multiplexes and amplifies mobile signals before they are routed onto the wireless network. More than one million Celiant amplifiers and amplifier modules are already in use in thousands of base stations worldwide.


MENLO PARK, CA — Foundation Capital today
announced that Paul Holland has joined as venture partner. Holland brings
significant operational experience to Foundation Capital; most recently he was
senior vice president of worldwide sales for Kana Communications (Nasdaq:
KANA). Previously, Holland served as vice president and general manager at
Pure-Atria (RATL).

LOS ANGELES — DataDirect Networks, the leading
provider of the world’s highest performance storage networking appliances, has
completed a $9.9 million Series A round with ClearLight Partners LLC, a $300
million private equity and venture capital fund, Digital Coast Ventures, the
venture capital investment vehicle of Digital Coast Partners, and PART’COM,
one of the premier European venture capital firms specializing in the sectors
of telecommunications, media and Internet.

SAN FRANCISCO — MPM Capital announced today that Mr. Nicholas Simon, formerly vice president of business development at Genentech, Inc, has joined the firm as a general partner.
Mr. Simon brings to MPM more than 20 years of experience in healthcare, including strategic planning, business development, marketing and sales expertise. His previous experience includes eleven years at Genentech where his last responsibility was Vice President in charge of Business and Corporate Development. During his time at Genentech he completed more than 50 deals (aggregate value in excess of $20b), including product out-licenses, strategic alliances, and product acquisitions. Signature deals include the high-profile in-licensing of Rituxan (Idec Pharmaceuticals, NASDAQ: IDPH) and the strategic development partnership with Xoma (NASDAQ: XOMA) on anti-CD11. He also managed Genentech’s commercial alliance with Roche.

CAMBRIDGE, MA — Endeca, provider of software solutions for companies that need to integrate, organize and navigate enterprise data, announces the successful completion of a $15 million second round of venture funding. The Company will use the new funding from Ampersand Ventures, Bessemer Venture Partners and Venrock Associates to continue aggressive product development, and expand marketing and sales of its information delivery and navigation software products and solutions.

VANCOUVER — Convedia Corp., a leading provider of next-generation media server solutions for the global communications market, today announced that it has secured $20 million in its third round of funding.
The financing, led by Silicon Valley – based Mayfield, also included participation from Ventures West and Entrepia as well as strong participation from Convedia’s existing investors Wesley Clover, Ontario Teachers Pension Plan, and Altamira. The company has now raised approximately $US 50 million since its inception in 1996.


SAN RAMON, CA — MobileWay, Inc., a leading
provider of global data access over wireless networks for businesses and
mobile operators, today announced that it has secured $27 million in second
round of venture funding. The round, led by Mayfield, also includes funding
from 3i, Investcorp, Citigroup, and Vertex Management. The new financing
supplements a $9M first round that closed in Summer 2000.

SUNNYVALE, CA — Uniscape, the leader in globalization software and services, announced today that EDS; Mitsui & Co. Venture Partners; BOS Ventures, a private equity arm of the OCBC Bank Group; and others have participated with current investors in the company’s Series D round of $18.5 million in funding. These strategic partners and venture firms join previous investors Sequoia Capital, the Infocomm Development Authority of Singapore, Jih Sun Venture Capital, and others in the round. Uniscape will use the funds to provide further enhancements to its enterprise-scale globalization management system, to grow its enterprise sales and partnering activities, and to further establish its leadership position in globalization. Uniscape’s Series D round of investment brings the company’s total funding to $36 million.

MOUNTAIN VIEW, CA — KnowNow today announced the close of $15 million in B-round financing led by venture capital firm TPG Ventures, an affiliate of Texas Pacific Group. The round includes strategic investments from Kleiner Perkins Caufield & Byers (KPCB), Morgan Stanley (NYSE:MWD) Technology Ventures, Palomar Ventures and RSA Ventures. This new funding brings the company’s total private equity funding to more than $23 million, and will help KnowNow grow its position as a leading provider of application internetworking software for real-time information exchange among applications over the Internet.

LONG BEACH, CA — SatisFusion Inc., the leading developer of after-sales support and retentions infrastructure platforms announces the closing of its Series B funding with investments totaling $7.5 million from a group led by Opportunity Capital Partners IV, L.P.
In conjunction with this investment, SatisFusion announces the acquisition of Los Angeles-based How2TV, a full-service provider of audio/visual sales, support and training solutions. Additional investors in the SatisFusion financing included prior Series A investors NIF Ventures, who led the A round, and Milepost Ventures.

RAMSEY, NJ — Bogen Communications International Inc., (NASDAQ: BOGN) (“Bogen”) today announced that an agreement has been signed with T-Venture, the venture capital arm of Deutsche Telekom, to purchase a minority stake in Bogen’s Speech Design business.
Under the terms of the agreement, T-Venture has purchased a 2% stake in a newly formed Bogen subsidiary, Speech Design International Inc. (“SDI”), which in turn, is now the holder of all equity in Speech Design GmbH, formerly directly held by Bogen. The sale of SDI Common Stock was made for approximately 842,000 euros (about $765,000 U.S.), and the purchaser also received a warrant to purchase an additional 2% of SDI at prices which, if SDI becomes separately traded, would be established at a discount to initial public SDI market prices. Separately, T-Venture signed a marketing agreement entitling it to receive 1% of SDI stock if T-Venture assists Speech Design in attaining certain Unified Messaging sales objectives.


FREMONT, CA — Panasas Inc., the pioneering leader in smart and infinitely scalable storage networks, today announced that it has secured $25.4 million in additional funding from three leading technology investment firms, bringing its total funding to $36.5 million to date.
Carlyle Venture Partners, an affiliate of private equity giant The Carlyle Group, leads the round in partnership with global investment bank Goldman Sachs and Mohr, Davidow Ventures (MDV), which led the company’s initial funding round of $10 million. Additionally, Bob Grady, managing director of Carlyle Venture Partners, has joined Panasas’s board of directors. The investment allows Panasas to bring to market its first-of-a-kind solution for enabling seamless scalability in storage capacity and performance required by the explosive growth of data in the enterprise today. The system, based on industry standard technology, is designed to easily integrate into existing IT environments.


CRANBURY, NJ — A group of health-care executives, backed by two leading private equity firms, announced today that it has completed the $408-million acquisition of the Healthcare Business and corporate stock of Carter-Wallace, Inc. (formerly NYSE:CAR). Carter-Wallace, Inc. has changed its name to MedPointe Inc.
This acquisition was led by a syndicate of private equity firms headed by The Carlyle Group and The Cypress Group. The syndicate also included Frazier & Company and Ferrer Freeman Thompson & Co. Through this transaction, the investor group acquired Carter-Wallace, Inc. and its two principal Healthcare Businesses, Wallace Pharmaceuticals, a prescription pharmaceutical division, and Wampole Laboratories, its medical diagnostics division.

The acquisition was funded with more than $500 million in equity and debt commitments, including more than $280 million from the equity investors. Bear, Stearns & Co. Inc., which underwrote the initial debt financing commitment, acted as Lead Arranger and Lehman Brothers acted as Co-Arranger for the syndication of $225 million of Senior Secured Credit Facilities in connection with the acquisition. Bear, Stearns & Co. Inc. also advised the equity investors.