PE Week Wire -- Wednesday, May 17
I’m running behind schedule on scores of deadlines, so just a few quick items…
*** Draper Fisher Jurvetson is close raising its first late-stage fund, which is being led by John Fisher, former AOL CEO Barry Schuler and ex DFL ePlanet pro Mark Bailey. I hear it’s got a $250 million target. Constance Loizos has the story.
*** Angelo Santinelli has left North Bridge Venture Partners, where he had been a general partner. No word yet on his future plans, or what will happen to his portfolio company board seats. You can still get his bio on the North Bridge website.
*** Fascinating Washington Post piece on the pending shutdown of Blue Security Inc., a Menlo Park, Calif.-based anti-spam company backed by Benchmark Capital. Seems they tried beating spammers at their own game, but got hit back a bit too hard.
*** Arcadian Networks announced last month that it had raised startup funding from Gilo Ventures and Goldman Sachs, but didn’t provide any specifics. A new regulatory filing, however, indicates that the company has secured around $81.64 million in total commitments, including $77 million of equity ($42m called down so far) and $4.64 million in convertible notes. Catalyst Securities served as placement agent, and something called Twinwood Capital Management also participated. Justin Hibbard first discussed the company back in January.
*** Tony James of Blackstone Group expects more PE firm IPOs like the recent offering from KKR.
*** Finally, a funeral service for Peter Claudy of M/C Venture Partners will be held this Saturday at 2pm, at the Trinity Church in Boston’s Copley Square. The family requests that all charitable donations in Peter’s memory be sent to: Parenting at a Challenging Time Program at Massachusetts General Hospital, c/o the MGH Development Office, 165 Cambridge St., Suite 600, Boston, MA 02114.
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Caterpillar Inc. (NYSE: CAT) has agreed to acquire Progress Rail Services Inc., an Albertville, Ala.-based provider of remanufactured locomotive and railcar products that is majority owned by One Equity Partners. The deal is valued at around $1 billion, including $424 million in cash, $376 million in Caterpillar stock and $200 million in the assumption of long-term debt. www.cat.com www.progressrail.com
Imperva Inc., a Foster City, Calif.–based provider of data security solutions for data centers, has raised $17 million in Series C funding. Greylock Partners led the deal, and was joined by return backers Accel Partners, US Venture Partners and Venrock Associates. Imperva has now raised around $33.7 million in total VC funding since its 2002 inception, including a $12 million Series B infusion at a post-money valuation of around $32.1 million. www.imperva.com
Restore Medical Inc., a St. Paul, Minn.-based developer of medical devices to treat sleep and breathing disorders, priced four million shares at $8 per share (below $9-$11 range), for an IPO take of approximately $32 million. It will trade on the Nasdaq under ticker symbol REST, while Deutsche Bank Securities served as lead underwriter. Restore Medical had raised just over $40 million in VC funding from firms like MPM Capital, Venturi Group, Bessemer Venture Partners, TH Lee Putnam Capital, Charter Venture Capital and NGEN Partners. www.restoremedical.com
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Instantis Inc., a Santa Clara, Calif.-based provider of on-demand software to manage CXO mandated initiatives that improve enterprise financial performance, has raised $8.8 million in fourth-round funding. US Venture Partners led the deal, and was joined by return backers like JK&B Capital and Shea Ventures. www.instantis.com
LocoMobo Inc., a Wellesley, Mass.-based provider of content to mobile phones, has raised $3.4 million in Series A funding led by General Catalyst, according to a regulatory filing.
GridPoint Inc., a Washington DC-based provider of intelligent energy management products, has raised $16 million in Series B funding. The Altira Group led the deal, and was joined by Contango Capital Management and Advantage Capital Partners. www.gridpoint.com
PixPo Inc., a Victoria, British Columbia-based personalized digital media company, has raised $6.5 million in first-round funding, according to blogger Om Malek. Madrona Venture Group led the deal, and was joined by Growthworks, Yaletown Ventures, and Springbank Ventures. Company CEO Ron Stevens told The Seattle Post-Intelligencer that the round remains open. www.pixpo.com
51.com, a Chinese social networking site, has raised $4 million in VC funding from Sequoia Capital. www.51.com
MusicBrigade AB, a Sweden–based digital music company, has raised around 3.2 million euros from Provider Venture Partners. www.musicbrigade.com
MobileAware Ltd., a Dublin, Ireland-based provider of mobile business solutions, has raised around $6.96 million in Series E funding, according to a regulatory filing. ABS Capital Partners and Apex Venture Partners were joined by return backers like Allegra Capital, Nauta Capital, Cross Atlantic Capital Partners and BA Capital Partners. www.mobileaware.com
D-Wave Systems Inc., a Vancouver, Canada-based developer of quantum computing systems for commercial use, has raised $14 million in second-round funding. Harris & Harris Group led the deal, and was joined by return backers Draper Fisher Jurvetson, BDC Venture Capital, Growthworks Capital and British Columbia Investment Management Corp. www.dwavesys.com
Maxthon Browser, a Beijing, China-based maker of an online browser, has raised an undisclosed amount of VC funding. Charles River Ventures led the deal, and was joined by return backers Morten Lund and WI Harper Group. www.maxthon.com
Moka5 (f.k.a. Skyblue Technologies), a Redwood City, Calif.-based provider of desktop virtualization technology, has raised an undisclosed amount of startup funding from Khosla Ventures. www.moka5.com
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NCO Group Inc. (Nasdaq: NCOG), a Horsham, Pa.-based debt collection company, said that it has received a $27.50 per share buyout offer from One Equity Partners and NCO chairman and CEO Michael Barrist. The deal would value NCO at around $1.21 billion, including around $321 million in long-term debt obligations. www.ncogroup.com
Pitney Bowes Inc. (NYSE: PBI) has agreed to sell its capital services external financing business to Cerberus Capital Management for $745 million. The deal is expected to close within the next 90 days. www.pb.com
Bain Capital, Texas Pacific Group and Apollo Management are among the first-round bidders for Cendant Corp.’s travel business, according to the NY Post. The unit includes such assets as Orbitz.com and CheapTickets.com, and could go for up to $4.5 billion. The Blackstone Group did not participate, despite making an unsolicited offer for the unit earlier this year. www.cendant.com
Lime Rock Resources has acquired certain working interests in a pair of East Texas gas fields – Black Bayou and Doyle Creek – from a private seller for $20.8 million. www.limerockresources.com
Corinthian Capital Partners has acquired Sabre Communications Corp., a Sioux City, Iowa-based designer and manufacturer of guyed and self-supporting towers and wireless monopoles for the communications industry. No financial terms were disclosed, although The Deal suggests a $60 million pricetag. Sperry, Mitchell & Co. advised Sabre on the transaction. www.sabrecom.com
ANZ Capital has sponsored a management buy-in acquisition of Ric's Confectionery and Prydes Sweets in Australia.No financial terms were disclosed. www.anz.com
Onex Corp. and Avista Capital Partners reportedly are among those bidding to buy The Philadelphia Inquirer and Philadelphia Daily News from McClatchy Co. Onex has teamed up with Black Press Ltd., while Avista is in a group led by former Knight Ridder executive Christopher M. Harte. Other bidders include MediaNews Group and the trio of Mort Zuckerman, Brian Tierney and Bruce Toll. The papers could go for up to $600 million, with Credit Suisse running the auction.
Demag Holding, a Germany-based crane maker, reportedly is planning to raise 600 million euros via a public floatation of just over 50% of the company. Kohlberg Kravis Roberts & Co. acquired a majority stake in Demag in 2002 as part of a 1.7 billion euros buyout of seven Siemens AG subsidiaries. Siemens retained at 17% stake in Demag. www.demagcranes.com
SR Technics, a Swiss provider of aircraft repair and overhaul services, has retained Rothschild and Wyvern Partners to prep a Q4 flotation. The deal would reduce 3i Group’s ownership position from 55% to less than 50 percent. www.srtechnics.com
Gordon Biersch Brewery Restaurant Group Inc., a Chattanooga, Tenn.-based operator of upscale brewery restaurants, has set its proposed IPO terms to around 4.17 million common shares being offered at between $11 and $13 per share. It plans to trade on the Nasdaq under ticker symbol BIER, with Thomas Weisel Partners and BB&T Capital Markets serving as co-lead underwriters. Hancock Park Associates acquired a majority position in Gordon Biersch via a 2004 buyout. www.gordonbiersch.com
AudioCodes Ltd. (Nasdaq: AUDC) has agreed to acquire Nuera Communications Inc., a San Diego–based provider of VoIP infrastructure solutions for broadband and long-distance communications. The deal is valued at $85 million in cash, plus up to $5 million in future earn-out payments. Neura has raised over $90 million in total VC funding since its 1998 inception, including a $28.5 million infusion in 2000 at a $635 million post-money valuation, and a subsequent $19.55 million deal in 2003 at a $39.55 post-money valuation. Current shareholders include Bay Partners, Comcast Interactive Capital, Goldman Sachs, J.F. Shea & Co., HarbourVest Partners, Sandler Capital Management, Telesystem-Argo Global Capital and SAIC Venture Capital Corp. www.audiocodes.com www.nuera.com
Sterling Commerce, a Columbus, Ohio–based multi-enterprise collaboration subsidiary of AT&T, has agreed to acquire Nistevo Inc., an Eden Prairie, Minn.–based provider of on-demand transportation management solutions. No financial terms were disclosed. Nistevo has raised nearly $25 million in VC funding since its inception, from firms like Bessemer Venture Partners, Insight Venture Partners and RBC Capital Markets. www.sterlingcommerce.com www.nistevo.com
GIMV has sold its 81.3% stake in LA Gym to HealthCity of The Netherlands. www.lagym.be
First Texas Holdings Corp., an El Paso, Texas–based provider of metal detectors and night vision optics, has acquired Fisher Research Laboratory, a Los Banos, Calif.-based metal detector company. No financial terms were disclosed. First Texas was acquired by the Texas Growth Fund and company management in 2003. www.fisherlabs.com
Source Medical Solutions Inc., a Birmingham, Ala.–based provider of outpatient information management solutions, has acquired Prescient Healthcare Systems LLC, a Branford, Conn.–based provider of business process solutions for ambulatory surgery centers. No financial terms were disclosed. Source Medical has raised around $33 million in VC funding from firms like ABS Capital Partners and HealthSouth Corp. www.sourcemed.net www.prescienthealthcare.com
Communications Supply Corp., a Carol Stream, Ill.–based distributor of low-voltage network infrastructure and industrial wire and cable products, has acquired Liberty Wire & Cable of Colorado Springs. No financial terms were disclosed. CSC is a portfolio company of Harvest Partners. www.gocsc.com www.libertycable.com
Tensar Corp., a portfolio company of Arcapita, has agreed to acquire Tensar International Ltd. from 3i Group, Electra Partners and company management for £68 million. Financing will include equity from Arcapita, senior first lien financing committed from Credit Suisse, and second lien and junior subordinated financing provided by existing Tensar backers American Capital Strategies and AIG Global Investment Group. Tensar is a UK-based provider of geogrid and geotextile products and technologies that provide soil stabilization and earth retention. www.tensarcorporation.com www.tensar-international.com
Riverside Partners has closed its third fund with $225 million in capital commitments, and will continue to focus on middle-market healthcare and technology companies. It already has three portfolio companies: National Display Systems, SixNet and Quantum Medical Imaging. Limited partners include MIT, TIFF, Abbott Capital Management, MN Services (on behalf of its clients) and Hartford Investment Management. Probitas Partners served as fund placement agent. www.riversidepartners.com
Parallel Investment Partners of Dallas has closed its second fund with $231 million in capital commitments, and will continue to focus on lower-middle-market growth companies. Parallel was formerly known as SKM Growth Investors, but went independent when Saunders Karp & Megrue merged with Apax Partners in April 2005. www.parallelip.com
Key Principal Partners has held a $435 million first close on its third fund, which is expected to be capped at $500 million. The Cleveland-based firm will continue to make non-control mezzanine and control equity plays in lower-middle-market companies. www.keyprincipalpartners.com
The Carlyle Group has closed its first mezzanine fund with $436 million in capital commitments. Its portfolio already includes the following eight companies: Sanitors Inc., Combined Systems Inc., United Road Towing Inc., LPL Holdings Inc., Sharis Management Corp., Targus Group International, American Achievement Corp. and Comark Building Systems. www.carlyle.com
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May 17, 2006
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