Private Equity Week Wire for Tuesday 2/19

ANDOVER, MA — CMGI Inc. (Nasdaq: CMGI) today announced that George McMillan, its current chief financial officer and treasurer, will become the Company’s new chief executive officer, effective March 1, 2002. In connection with his promotion to CEO, McMillan has also been elected to CMGI’s Board of Directors.

HOD HASHARON, ISRAEL & FARMINGDALE, NY — PowerDsine(R), a leading designer and developer of software-controlled network power solutions, has completed a $30-million round of venture financing arranged by Robertson Stephens International and led by DB Capital Venture Partners, the venture capital arm of Deutsche Bank. DB Capital Venture Partners invested $15 million; other investors include Dain Rauscher Wessels Partners, Robertson Stephens Partners and several existing shareholders.

MONTREAL — MSBI Inc., a provider of seed and early stage venture capital for the commercialization of innovations in life sciences, information technology and physical sciences, announced the close of MSBI LP, its $26 million seed and early-stage venture capital fund. MSBI LP will fund technology-based businesses in sectors such as biotechnology, pharmaceuticals, bioinformatics, software, communications & networking.

MSBI LP involves McGill University, Universite de Sherbrooke and Bishop’s University and their affiliated institutes, in partnership with Valorisation- Recherche Quebec. These affiliated institutes are McGill University Health Centre, the Jewish General Hospital, the Douglas Hospital and the Centre hospitalier universitaire de Sherbrooke. The universities and their institutes are all limited partners in the fund.

NEW YORK — Lazard announced today that Charles G. Ward, III has joined the firm as President. Ward has served as co-head of Global Investment Banking and Private Equity at Credit Suisse First Boston and prior to that as President.



SALT LAKE CITY — Cerberian, a leading provider of employee Internet management services, Tuesday announced it has closed on a third round of funding that raised $1.8 million for the company.
The round was led by vSpring Capital LLC and also included investments from Forval Creative Inc., Wasatch Ventures, and Cerberian management. The round closed on Jan. 23, 2002.



BOSTON — Outside The Classroom Inc., the leading provider of online health education tools for colleges, universities, and other markets, announced today the completion of $2 Million in Series C financing lead by Sherbrooke Capital, a health and wellness focused fund located in Newton, MA. Additional investors include Boston’s CommonAngels and AngelHealthcare Investors.



CANNES, FRANCE — Motorola Inc. (NYSE: MOT) today announces it has made a minority equity investment in Codeonline Oy, a Finnish mobile entertainment company. Motorola and Codeonline have an established commercial relationship designed to bring some of the world’s most well known brand names in games and entertainment to the mobile phone market. The current focus is on wireless versions of popular interactive quiz games such as “Who Wants To Be A Millionaire?(TM),” “Trivial Pursuit(TM),” and “Zobmondo(TM).” Motorola participated in Codeonline’s most recent round of equity financing through Motorola Ventures, the global, strategic venture capital investment arm of Motorola, Inc. Financial details of the investment were not disclosed.


LAWRENCEVILLE, NJ — Vela Pharmaceuticals Inc. (VelaPharm, www.velapharm.com), a privately held company specializing in the development of medicines for central nervous system (CNS) disorders, today announced it has raised $25 million in private equity financing. The transaction was led by JP Morgan Partners and included investments from several current stockholders, including New Enterprise Associates and Venrock Associates. VelaPharm will use the funding to accelerate development of its ongoing programs, expand its in-licensed portfolio and provide working capital.

NEW YORK — As expected, Private Equity Performance Index results for Q3 2001 showed a continued downward trend for the third consecutive quarter, according to Venture Economics and the National Venture Capital Association. This downward trend can be attributed to decreasing technology company valuations, public market volatility, and a weak economy.

One-year returns for venture capital funds fell from -18.2% at the end of Q2 2001 to -32.4% at the end of Q3 2001. When looking at longer time frames (3-year through 20-year), performance was minimally affected during the third quarter. One-year returns for all private equity, including venture capital, buyouts and mezzanine funds, showed a performance of -21.4% ending 9/30/2001. That compares with one-year, public market returns of -64.4% on the NASDAQ and -31.4% on the S&P.

PALO ALTO, CA — The Electric Power Research Institute (EPRI) today announced that it has received $10 million in funding from VenturePath, Inc., a Silicon Valley-based entrepreneurial investment firm. The funding will support expansion of EPRI’s Eco-Solutions initiative, a land management program that develops strategies for quantifying and boosting the economic value of ecological assets (eco-assets).

KING OF PRUSSIA, PA — -InfiniCon Systems Inc., the premier developer of shared input/output (I/O) systems announced today that it has completed $26M in Series B funding.
The company’s second round of funding, led by Bay Partners, also included Wasserstein Ventures, Crosslink Capital, AG Edwards Capital and Dow Chemical Corporate Ventures. The round was also supported by initial Series A investors Arch Venture Partners and Tredegar Investments.



ALBUQUERQUE, NM — Eclipse Aviation Corp., manufacturer of the Eclipse 500 jet, today
announced the closing of its third round of equity investment worth $100
million.

The company, aimed at making private jet travel affordable for commercial
air passengers, has secured a total of $220 million to date through three
rounds of funding.

Garnered from undisclosed private investors, the capital will fund the
company’s continued progress toward the manufacture and certification of the
Eclipse 500 jet.

The latest round of funding was secured in two closings. $62 million was
secured in September 2001, with an additional $38 million secured in February.

FAA certification of the Eclipse 500 is scheduled to occur in December 2003.
First customer deliveries are scheduled for January 2004.



CHANDLER, AZ — Instrumentation Metrics, the developer of a noninvasive technology for blood glucose monitoring, today announced it has closed a $30 million series D round of financing. Alliance Technology Ventures (ATV) and A.M. Pappas & Associates are first time investors in the company. ATV led the round, with significant support from returning investors Sprout Group, Apax Partners, Inc. (formerly Patricof & Co. Ventures, Inc.), INVESCO Funds and Adams Street Partners (formerly Brinson Partners).

BEDFORD, NH — Lightship Telecom, an integrated business communications provider, today announced a private equity investment of an additional $12.7 million by JPMorgan Partners and Megunticook Management. This new funding represents an initial investment from Megunticook Management and continued support from JPMorgan Partners (formerly JPMorgan Capital Partners) in the Bedford, NH-based company. This investment fully funds Lightship to profitability.


MORRISTOWN, NJ — Celerica Inc., a wireless infrastructure start up, today announced the
details of its second round of funding. Leading the round of over $18 million
was Pitango Venture Capital of Tel Aviv, Israel. Other investors include
Charles River Ventures, Platinum Venture Capital, Ridgewood Capital, and STAR
Ventures, as well as the private investors that participated in the initial
funding of the Company. The total funding raised to date is over $20 million.

SANTA CLARA, CA — Sequence Design Inc., the SoC Design Closure Company, today announced it has raised $20 million of funding in its mezzanine round. Prominent investors participating in the financing are Alpine Technology Ventures, Atlas Venture, Focus Ventures, GM Capital Partners, Institutional Venture Partners, Menlo Ventures, Sigma Partners, Sofinnova Ventures, VenGlobal Capital and others.


WOKINGHAM, UK — Microscience complete third round fund raising led by Advent Venture Partners and JPMorgan Partners together with existing investors, Apax Partners Funds and Merlin Biosciences. The round was worth 25.5m pounds Sterling ($37 million).

WASHINGTON — InPhonic Inc., a leading provider of wireless communications technology and services, today announced it has agreed to acquire Simplexity Inc., one of the largest online marketers of wireless telecommunications products and services, for cash and stock valued at approximately $20 million.
Founded in 1998 in Herndon, VA, Simplexity provides Web-based sales and distribution systems for carriers and retailers selling wireless products and other telecom services directly to consumers.

HOUSTON — Freestone Partners LLC, in conjunction with First Capital Group, has acquired Dan-Loc Bolt & Gasket Inc. of Houston in an asset purchase. The company was acquired from The Flexitallic Group Inc., also of Houston. Terms of the transaction were not disclosed. Dan-Loc Bolt & Gasket is a 40-year-old manufacturer of fasteners and high-pressure metal gaskets used by the energy industry.

BIRMINGHAM, AL — 8760 Inc., formerly Group 8760 LLC, announced today the completion of an approximately $1 million Series A round of venture capital funding.
This investment will support the company’s efforts to further develop, market and support its electronic document delivery software for the energy industry. The round was led by Bonaventure Capital LLC. Additionally, Steve Dauphin, a principal at Bonaventure Capital, has joined the 8760 Inc. Board of Directors.


BOSTON
— Dove Consulting announced today it will draw on its twenty-years of ATM and ISO industry expertise to offer targeted M&A advisory services to ATM deployers and ISOs.

For two decades Dove has been helping financial services leaders make and implement important strategic decisions, including those that involve mergers, acquisitions and divestitures. Now the firm will extend that assistance to the design and execution of deals through Dove Capital Partners. Services will include portfolio valuations, market entry and exit strategies, buyer/seller identification and due diligence, and M&A deal design and execution.

ORLANDO — Keystone Helicopter founder, helicopter industry legend Peter Wright Sr., has been named Chairman Emeritus of the venture capital holding company which recently acquired Keystone.

Keystone Helicopter is now owned by a Philadelphia-area private equity organization comprised of Ranger Aerospace LLC and several other aviation- focused investor groups. Steve Townes, CEO of Keystone Ranger Holdings, said: “We are honored that Peter Wright Sr. has agreed to join our efforts. I am really counting on his experience and advice to help us shape our consolidation strategy.”

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