To ensure this email is delivered to your inbox, please add the email
address to your address book.
If you are having trouble viewing this email, please go here.

    PE Week Wire -- Thursday, July 7

It goes without saying, but my prayers and well-wishes are with the people of London this morning. This also includes editorial colleagues in our London office at 33 Aldgate House, which has been seen in the background during much of this morning’s television coverage.

If you know of private equity-related people affected, injured or – God forbid – murdered through today’s attacks, please pass on the information so that it can be shared with your fellow readers. It can be a grim business, but also a time when people put aside petty differences (business, political, etc.) and provide communal support.

    Top Three


Royal Philips Electronics (NYSE: PHG) has agreed to acquire Stentor Inc., a Brisbane, Calif.-based provider of picture archiving and communications systems used for storing, managing and distributing digital radiology images in hospitals and healthcare facilities. The deal is valued at approximately $280 million in cash. Sentor has raised over $25 million in VC funding since its 1998 inception, including a $20 million infusion in August 2000 at a post-money valuation of around $83 million. Backers include Sanderling Vetures, Lancet Capital, University of Pittsburgh and EMC Inv*stment Corp. Stentor has been in registration for a $69 million IPO since last November.

Town Sports International Holdings Corp., a New York-based health-club chain operator, has filed to raise $172.5 million via an IPO of common stock. It plans to trade on the Nasdaq under ticker symbol CLUB, with Credit Suisse First Boston and Deutsche Bank Securities serving as lead underwriters. Significant shareholders include Bruckmann, Rosser, Sherrill (38.4% pre-IPO stake), Farallon Capital Partners (20.6%) and Canterbury Mezzanine Capital (10.6%).

NextHop Technologies Inc., a Mountain View, Calif.-based provider of network software solutions for Internet infrastructure manufacturers and service providers, has raised $10.5 million in Series B funding. Return backers include New Enterprise Associates, Duchossois Technology Partners, Labrador Ventures and Parker Price Venture Capital. NextHop has raised $35 million in total VC funding since its 2000 inception.

    VC Deals

The Boonty Co., a New York-based provider of digital video game distribution solutions, has raised $10 million in Series B funding. Rothschild Gestion and SPEF Venture were joined by return backers OTC Asset Management and Entrepreneur Venture., a San Diego-based provider of on-demand IT service and asset management solutions, has received $2.5 million in Series A funding from JMI Equity Fund.

CompassCare Inc., a Lake Forrest, Ill.–based provider of cost and treatment delivery management software for the outpatient healthcare industry, has raised $2.75 million in Series B funding. Hopewell Ventures led the deal with a $2 million commitment, and was joined by return backer Draper Fisher Jurvetson.

Expresso Fitness Corp., a Sunnyvale, Calif.-based supplier of interactive software for Internet-enabled cardio-fitness systems, has raised $4.5 million in Series B funding led by Enterprise Partners.

Fiberxon Inc., a Santa Clara, Calif.-based developer of optical modules and transponders for the construction of high-speed communication networks, has raised $20 million in Series C funding. Greylock and return backer Apax Partners co-led the deal.

NeoPhotonics Corporation, a San Jose, Calif.-based producer of active and passive optical components, has received $1 million in additional VC funding from Harris & Harris Group Inc.

EPGI Firecreek Inc., an oil production company with offices in Scottsdale, Ariz. and Torquay, England, has received a private equity funding commitment of up to $25 million from Dutchess Private Equities Fund II. The financing will be drawn over a three-year period.

    Buyout Deals

JC Flowers & Co., a UK-based buyout firm run by former Goldman Sachs pro Christopher Flowers, has won the auction for Dutch bank NIB Capital, according to Reuters. The article adds that the $2 billion euros price tag cited in a recent Wall Street journal article is “exaggerated.”

Charterhouse Capital Partners reportedly has won the auction for UK-based – and publicly-traded -- washroom services company PHS Group, with a Gbp600.4 million bid. Charterhouse had owned PHS prior to a 2001 IPO.

Allied Capital Corp. (NYSE: ALD) has agreed to sell its 65.7% stake in Housecall Medical Resources Inc. to Amedisys Inc. (Nasdaq: AMED) for $106.4 million. Housecall Medical is a Knoxville, Tenn.–based provider of home healthcare and hospice services, and was acquired by Allied Capital in November 2002, as part of a divestiture by former parent Adventist Health Systems. Harris Williams & Co. advised Housecall Medical on the sale to Amedisys.

MVC Capital Inc. (NYSE: MVC) has sponsored the buyout of General Electric’s Ohmeda brand suction and oxygen therapy business unit (GE-SOT). MVC Capital also has agreed to acquire GE-SOT’s largest supplier – Quire Cogswell-Aeros Instruments Inc. – and plans to merge both businesses into a new entity named Ohio Medical Corp. MVC Capital provided a total of $17 million in equity capital for the deals, with additional equity commitments coming from Champlain Capital, Guggenheim Corporate Funding and Imperial Capital. Guggenheim Corporate Funding served as lead arranger for the transaction’s d*bt financing.

3i Group received European Union approval for its proposed buyout of a majority stake Italian toy maker Giochi Preziosi SpA.

    PE-Backed IPOs

New Flyer Industries Inc., a Winnipeg, Canada-based manufacturer of heavy-duty transit buses, has filed for an IPO of income deposit securities. The offering would price on the Toronto Stock Exchange, and could generate upwards of Cdn$350 million. The company was acquired last year by Harvest Partners and Lightyear Capital, from KPS Special Situations Fund.

Genco Shipping & Trading Ltd., a New York-based dry-bulk carrier, has set its proposed IPO terms to 11.5 million common shares to be offered at between $24 and $27 per share. It plans to trade on the Nasdaq under proposed ticker symbol GSTL, with Jefferies & Co. and Morgan Stanley serving as lead underwriters. Oaktree Capital Management serves as the company’s controlling shareholder, via an entity called Fleet Acquisition Co.

Hoku Scientific Inc., a Honolulu, Hawaii-based developer of fuel cell technologies, has saiod that it will look to price 4.2 million shares via its proposed IPO of common stock. It plans to trade on the Nasdaq under ticker symbol HOKU, with Piper Jaffray serving as lead underwriter. Significant shareholders include Lava Ventures and the Hawaiian Electric Co.

Coffeville Resources Inc., a Kansas City-based petroleum refiner and marketer, has withdrawn registration for its proposed $300 million IPO, due to the acquisition of certain subsidiaries by a third party. Pegasus Capital Advisors is the company’s largest shareholder.

    PE-Backed M&A

Parametric Technology Corp. (Nasdaq: PMTC) has agreed to acquire Arbortext Inc., an Ann Arbor, Mich.-based provider of enterprise publishing software solutions. The all-cash deal is valued at $190 million, and is expected to close later this month. Arbortext has raised approximately $55 million in venture capital funding from firms like Norwest Venture Partners, Invesco Private Capital and North Coast Technology Inv*stors.

Global Energy Decisions LLC, a Boulder, Colo.-based provider of IT solutions to the energy industry, has acquired KW International Ltd., a London–based provider of energy trading and risk management software. No financial terms were disclosed. KWI was a portfolio company of Insight Venture Partners.

Vernalis PLC (Nasdaq: VNLS) has agreed to acquire Ionix Pharmaceuticals Ltd., a UK-based analgesic drug discovery company. The all-stock deal is valued at approximately Gbp12.5 million. Ionix has raised VC funding from Apax Partners and The Wellcome Trust.

PlayNetwork Inc., a Redmond, Wash.-based provider of in-store entertainment solutions, has completed its all-stock merger with Crows Nest Entertainment Inc., a Seattle-based digital signage and systems integration company. PlayNetwork has raised VC funding from Chartwell Capital Management, Talon Opportunity Fund, Velocity Capital Management and Cedar Grove Inv*stments. Silicon Valley Bank provided financing for the merger.

Vigilar Inc., an Atlanta-based IT security consultancy, has acquired Intense School, a Ft. Lauderdale, Fla.-based IT and security training organization. No financial terms were disclosed. Vigilar has raised $4.5 million in VC funding from firms like McLeod Ventures and eLaunchpad.

    PIPE Deals

Sirna Therapeutics Inc. (Nasdaq: RNAI), a Boulder, Colo.-based biotech company, has held an initial closing on a $28 million PIPE deal. The round includes approximately $9 million from existing shareholders Sprout Group, Oxford Bioscience Partners and Venrock Associates.

    Human Resources

Elliot Swan is no longer a managing director with TD Capital Ventures, according to the firm’s website.

Andrew Harrison has joined Celtic House Venture Partners as an associate in the firm’s Toronto office. He previously served as an associate with Primaxis Technology Ventures.

Todd Peterson has joined Nixon Peabody LLP as a partner on the business practice group’s private equity team. He previously was a partner with Salans.

Pierre LeComte has joined TSG Consumer Partners as a vice president. He previously led strategic diligence teams in the private equity practice of Bain & Co.

Ben Choi has joined In-Q-Tel as a senior associate, after previously having worked with RRE Ventures.

James Unruh, managing principal of private equity merchant bank Alerion Capital Group, has joined CSG Systems International Inc. as a Class III director. He replaces former CSG Systems CEO and chairman Neal Hansen, who has resigned. CSG is an Englewood, Colo.-based provider of billing and customer care solutions for the cable television, broadcast satellite, mobile and fixed wire-line markets.

David Kornblau has been named first vice president and head of regulatory affairs at Merrill Lynch & Co.


This is a free service of Private Equity Week, the only industry publication that tracks and researches private equity deals for the entire venture capital market. The weekly newsletter and daily website give you in-depth news on industry trends, companies seeking investors, deals at all stages, participating firms, deal conditions, proceeds and pricing. The experienced business reporters of Private Equity Week go beyond the press releases to find the stories behind the headlines. Private Equity Week offers:
  • Informative reporting on deals at every stage
  • Commentary on important trends in private equity
  • Regional roundup of SEC filings Breakdowns of private equity funds
  • Tables of venture-backed IPOs in registration and pricing
  • Strategy and market insight on venture fund activity
  • PEW Scoreboard: a comprehensive list of the past week's venture deals
  • Private Equity People: a list of the comings and goings of private equity professionals
  • Conference Calendar: a list of upcoming private equity events
Subscribe to Private Equity Week NOW!



July 7, 2005


Interested in placing
your ad above?
Learn How

Copyright 2005 by Thomson Financial. All rights reserved.
195 Broadway, 10th Floor, New York, NY 10007