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Latest Deals: 05 - 11 February 2003

The AltAssets weekly round up of deals done across the world. This week there were 151 active investors in 57 deals and five exits across 14 sectors…

Active investors this week

Europe & Israel

Sport & Leisure

Investments:

Permira completes leisure acquisition
Permira has completed the acquisition of Travelodge and Little Chef from the Compass Group. The two companies, which had a combined turnover of £345m in 2002, were acquired by TLLC Limited, a company set up by Permira to make this acquisition.

Secondary buy-outs

Cinven and Candover back Gala buy-out
Private equity houses Cinven and Candover have backed the £1.24bn buy-out of Gala Group, the UK-based bingo, casino and online gaming company. The company was acquired from CSFB Private Equity and PPM Ventures, providing the two firms with a realisation on their investment. Cinven and Candover invested £274m for equal equity stakes in the company.

Food & Beverage

Exits:

Western NIS Enterprise Fund sells stake in Vitanta-Intravest
Moldova-based Western NIS Enterprise Fund has sold its equity interest in Vitanta-Intravest, a beer and soft drinks producer based in Moldova. The firm owned 85.59 per cent of the company, which it has sold to Efes Breweries in a transaction valued at up to $12.45m. The realisation represents a 2.2 X cash on cash return for Western NIS and a 20 per cent IRR based on an investment totalling $4.7m in a series of investments beginning in 1998.

Software

Investments:

Mobile Internet Capital invests in Columbitech
Japanese venture capital firm Mobile Internet Capital has joined the existing group of investors in Swedish software developer Columbitech. The amount of the transaction remains undisclosed. MIC involvement will help the company in its ambitions to penetrate the Asian market.

HgCapital backs Rolfe & Nolan public-to-private
UK and Germany-based private equity firm HgCapital has backed the management buy-out of Rolfe & Nolan in a public-to-private transaction. The deal completed at 100 pence per share and values Rolfe & Nolan at £15m. The company specialises in providing software for the listed derivatives industry and its products are used by over 250 clients throughout America, Europe and the Asia-Pacific region.

Education

Investments:

Sovereign Capital acquires UK special education group
Sovereign Capital has acquired the UK-based education group Honormead Schools. The company specialises in residential schools based in Derbyshire and Staffordshire for children with speech and language difficulties and associated challenging behaviour. Sovereign Capital led the £22m transaction, which will finance a series of acquisitions. It will also allow for the group's expansion through organic growth.

Manufacturing

Investments:

Gresham backs MBO of Altair
Gresham Private Equity has backed the management buy-out of Altair Filter Technology, a Hampshire, UK-based company that develops specialist filter systems and acoustic equipment. The transaction consists of £14m in equity, provided by Gresham, and £10.5m in debt from the Bank of Scotland. The management buy-out team was led by former sales director Andrew Steel and Steve Wenger, managing director US.

Graphite Capital backs MBO of cracker manufacturer
Mid-market private equity firm, Graphite Capital, has backed the £25m management buy-out of Napier Industries, a Rickmansworth, UK-based manufacturer of Christmas crackers. The company has been acquired from Richard and Charles Cyzer who acquired it in 1983, although Cyzer and Napier's other senior managers will stay with the firm and retain a minority stake.

Retail

Investments:

Rutland Fund Management acquires the musical instrument division of Boosey & Hawkes
Turnaround specialists Rutland Fund Management has acquired the musical instruments division of Boosey & Hawkes. The business comprises some of the most established brands in the music industry, including Buffet Crampon, Rico, and Besson. The acquisition will enable an operational restructuring, a closer focus on manufacturing efficiency and the introduction of improved financial and operating controls.

Healthcare & Life Sciences

Investments:

BioProjects International invests in Acolyte Biomedica
BioProjects International has invested £1m in the £2.6m second round financing of Acolyte Biomedica, a developer of technology for the diagnosis and treatment of infectious diseases. The company is headquartered in Salisbury, UK. The new capital is intended to enable Acolyte to complete development and integration of further assays within the BacLite system.

Networking

Investments:

Advent funds Radiant's fourth round
Advent International has returned to invest in a fourth round of venture capital funding for Radiant Networks, a UK-based provider of broadband access technology. Intel Capital and the Gartmore Group also participated in this £12m financing, which the company will use for product development and to hire customer support staff to man a help desk centre and professional services staff to help customers design and operate their networks, according to The Deal.

Services

Exits:

AMJPE exits TSC
Aberdeen Murray Johnstone Private Equity has realised its investment in Telecom Service Centres, a UK-based call centre operator. The company was originally funded in 1994 with an initial investment of £200,000 from HIE Ventures, a fund managed by AMJPE. HIE Ventures has sold its share in TSC for £3.9m, representing an IRR of almost 60 per cent over the seven years.

North America

Wireless

Investments:

SoundView Ventures commits to Xora
SoundView Ventures has invested in a series B round of venture financing for Xora, a provider of mobile solutions for enterprise applications. The company, which is based in Mountain View, California, raised $4m from SoundView. The company will use the capital to consolidate its position in the marketplace.

Technology Venture Partners leads round for Peregrine
Technology Venture Partners was the lead investor in Silicon Valley-based Peregrine Semiconductor's series A1 recapitalisation round. Peregrine Semiconductor provides components for wireless communications and optics. It has raised $7.5m for this tranche, which has closed the round with a total of $23m. Australasian Media and Communications Fund, Morgenthaler Ventures, Wasserstein Ventures, Apax Partners, Newlight Associates, CSK Ventures, CDIB Ventures, H&Q Global Alliance, Intel Capital, Needham Capital Partners, and Roser Ventures provided the remainder of the new funding.

Hotung Capital funds Airespace
Hotung Capital has committed capital to Airespace, a Clifornian developer of wireless switches. The company, which was previously called Black Storm Networks, has raised $15.5m through two funding rounds. The company raised its series A and series B rounds from Hotung Capital, KTB Ventures, Battery Ventures, Norwest Venture Partners, and Storm Ventures, which incubated the company. Airespace is using its cash to fund sales and marketing as well as product rollout, according to VentureWire.

Technology

Investments:

Crosslink Capital leads round for Brecis
Crosslink Capital has led a round of venture capital funding for Brecis Communications Corporation. The California-based company secured $20m for this round, which included return investors InterWest Partners, Focus Ventures, Norwest Venture Partners and Sequoia Capital. This round provides working capital to increase production.

US Venture Partners in round for 3ware
US Venture Partners has invested in a round of funding for 3ware, a Mountain View, California-based company that provides data storage solutions. The company has received $26m in financing in this round from US Venture Partners, New Enterprise Associates, VantagePoint Ventures and Selby Venture Partners. The new capital will be used to continue the advancement of its product range and the expansion of its global sales and marketing programme.

CenterPoint Venture Partners funds VoiceRamp
CenterPoint Venture Partners has committed funds to VoiceRamp Technologies, a Richardson, Texas-based company that develops a software platform for providing class five switch services for broadband access and existing switching networks. The company has raised $7.8m in this series A financing. New investors CenterPoint and Star Ventures co-led the round, while existing investor StarTech Early Ventures also participated. The proceeds from the round will be used for customer acquisitions and expanding its product range.

Sigma Partners in lead for BroadWare
Sigma Partners has led a group of investors in a series A round of equity financing for BroadWare Technologies, a Californian company that provides a platform for developing real-time networked video applications. The company has raised a total of $8m in the round, the proceeds of which will be used to increase the company's sales and marketing efforts and expand the development of the company's flagship product. Other investors in the round included Dali Hook Partners, McKenna Ventures, Defta Partners, New Vista Capital and NetService Ventures.

Charles River Ventures leads round for Key Research
Charles River Ventures has led a $12.5m series B funding round for Key Research, a Californian company that is developing high-performance, 64-bit server computer systems for use in Linux clusters. New investors Charles River Ventures and Enterprise Partners Venture Capital co-led the round, with participation from series A investors CMEA Ventures and Skymoon Ventures. New investors ChevronTexaco Technology Ventures and the Dow Employees Pension Fund also contributed. The proceeds from the round will be used to develop the company's server product line and to launch the company and its products officially.

Edison Venture Fund invests in Octagon
Edison Venture Fund has invested in a round of financing for Octagon Research Solutions, a King of Prussia, Pennsylvania-based solutions provider to the life sciences industry. The company has completed a $3.8m first round of funding. Edison Venture Fund led the deal, and was joined by Milestone Venture Partners.

Pittco Capital Partners leads round for Qcept
Pittco Capital Partners has led a round of institutional financing for Qcept Technologies, a US-based developer of sensors for detection, imaging, and analysis of geometrical and chemical features of components including semiconductors. The company has raised $2.1m in this series A round, which also included Atlanta Technology Angels and a group of Chicago-based individual investors. Existing investor Bergman and Associates reinvested in the round. The start-up will devote the new capital to product development and sales for the company's scanning sensor.

IndiGo Ventures commits funds to NetWolves
IndiGo Ventures has committed the majority of a $2.5m round of financing for Tampa, Florida-based NetWolves. The series B preferred stock transaction is part of an overall effort to raise up to $4 million. NetWolves provides network security solutions.

Alta Partners leads round for Neah Power
Alta Partners has led a round of venture capital financing for Neah Power, a Bothell, Washington-based developer of micro fuel cell technology. The amount the company raised in this series B round has not been disclosed. Alta Partners was joined by Intel Capital and Frazier Technology Ventures. The funds will be used for product development.

The Trillium Group finances VirtualScopics
The Trillium Group, a US-based private equity firm, has committed capital to a round of venture capital financing for VirtualScopics, a Pittsford, New York-based provider of image-based biomarker analytic technology and services. The company has raised $3.45 million in this series C financing, the proceeds of which it will use to expand the company, filling critical open positions and funding key research projects in oncology, neurology, vascular and musculoskeletal areas. GE Medical Systems also invested for the first time with this round.

Expansion Capital leads round for Wellspring
Expansion Capital has led a round of equity financing for Wellspring International, a provider of wireless systems and utility cost-recovery services. The company, which is situated in San Diego, has raised $6.1m in its ongoing series C round, the proceeds of which it will use for working capital. New investor Expansion Capital was joined by North Atlantic Capital, and existing investors Nth Power Technologies, Early Stage Enterprise, ArchStoneSmith, and Calvert Mutual Fund. Wellspring has raised $18m to date.

Jafco commits to semiconductor company
Jafco has committed funds to a Palo Alto-based fabless semiconductor company developing switch fabric for switch and router systems. TeraChip has raised an additional $3m from Jafco, which brings its current total for this ongoing series B round to $18m. Benchmark Capital and Accel Partners had previously provided the $15 million in the round as co-lead investors. The company will use the new funding to boost its US offices, including hiring staff and buying equipment.

Mid-Atlantic Venture Funds invests in MindMatters
Mid-Atlantic Venture Funds has invested in MindMatters Technologies. MindMatters develops enterprise applications for oversight and management of the corporate product development process and is situated in Pittsburgh. It has closed its third round of funding with $1.25m. Mid-Atlantic Venture Funds led the round with participation from Future Fund. The company will use the new capital to continue to enhance its technology and expand its sales and marketing infrastructure.

Healthcare & Life Sciences

Investments:

CID Equity Partners funds AxioMed
CID Equity Partners is among a group of investors in a first round of institutional financing for AxioMed Spine, an Ohio-based company that develops spinal implants. The company has successfully closed its round on $2.75m. Early Stage Partners, Primus Venture Partners and Reservoir Venture Partners also participated. This cash infusion will support the completion of its development efforts.

Forrest Binkley & Brown commits to AD PathLabs
Forrest Binkley & Brown Capital Partners has committed capital to AD PathLabs, a provider of infrastructure and technical services to the anatomic pathology community. The company, which is situated in Newport Beach, California, has raised $8.9m in series C financing. Forrest Binkley & Brown Capital Partners co-led the round with Pacific Venture Group, with both investors placing $2.5 million towards the round. Blue Chip Venture Company also invested $2.5 million. Proceeds from the round will be devoted to infrastructure and expansion of operations to targeted regions beyond Southern California.

Canaan Partners leads financing for Coapt
Canaan Partners has led a $12m series C round of venture capital financing for Palo Alto-based Coapt Systems, a developer of bioabsorbable implants for plastic, reconstructive and sports medicine surgeries. Canaan Partners, an existing shareholder, led the financing with an investment of $4m. Other prior investors taking part in the round included Asset Management, Alta Partners, Spring Ridge Ventures, Trellis Health Ventures, and Pacific Asset Partners. Foundation Medical Partners, a new investor, also provided Series C funds. The series C round is expected to carry the company through to break even. Founded in May 2000, Coapt Systems previously raised $7.5 million in two venture rounds. Proceeds will go to commercialising the company's first product, according to VentureWire.

Alloy Ventures return to Targesome
Alloy Ventures has returned to invest once again in Targesome, a Palo Alto-based biopharmaceutical company that is developing nanoparticle-based technology for the development of novel drugs. Targesome has raised $5.5m in this first tranche of its series D financing. Existing investors Alloy Ventures and CHL Medical Partners co-led the round, which had an initial close in December. Other previous investors taking part in the financing included Asset Management Company.

MacAndrews & Forbes Holdings funds TransTech
MacAndrews & Forbes Holdings has committed funds to TransTech Pharma, a drug discovery firm focused on small molecule therapeutics. TransTech is based in High Point, North Carolina, and has secured $15m in this series E financing. MacAndrews & Forbes Holdings, a previous investor in TransTech, led the rounds. To date, The company has raised $38.5m and has also received funding from individual investors. TransTech will use a portion of the proceeds from the latest round to advance two internal programs into phase I clinical trials during 2003, according to VentureWire.

Exits:

Viscogliosi Brothers exits Spine Solutions
New York-based private equity firm, Viscogliosi Brothers have exited their investment in Spine Solutions having only recently committed a further $3.4m to the company. The company has been sold to a European strategic buyer called Synthes-Stratec for $350m. The company develops and markets an artificial disc system designed to reduce back pain and restore mobility after surgery, according to PrivateEquityCentral.

Services

Investment:

Boston Ventures funds Survey Sampling International
Private equity firm Boston Ventures has made a capital commitment to Fairfield, Connecticut-based Survey Sampling International. The company provides respondent sample information for research surveys. Other participants in this round, the total for which remains undisclosed, were Prairie Capital and an international investor group. James Wilson and Vik Raina, general partner and partner at Boston Ventures, will sit on the company's board.

New Mountain acquires CP Commercial Specialists
New Mountain Capital, a New York-based private equity firm, has acquired ChoicePoint's audit and inspection business for $87m in cash. CP Commercial Specialists, headquartered in Overland Park, Kansas, provides audit and property survey services to the insurance industry and operates 25 branches throughout the US.

Financial Services

Investments:

LLR Partners and MidCoast back Dime's MBO
LLR Partners and MidCoast Capital have backed the management buy-out of Dime Capital Partners from Washington Mutual, the bank that bought Dime Bancorp in 2001 for $5.2bn. LLR and MidCoast have acquired the investment assets of Dime Capital, whose management will continue to manage its portfolio of 30 investments. The transaction value and terms of the deal were not disclosed.

Software

Investments:

Draper Fisher Jurvetson invests in H5 Technologies
Draper Fisher Jurvetson has committed capital to the latest round of financing for H5 Technologies, a San Francisco-based developer of information discovery, analytic, and threat detection applications. The company closed its series B financing at $6.5m, which it will use to continue new product development and to expand business development, sales, and marketing.

Capital Southwest leads round for CashWorks
Capital Southwest has led a series B round of venture capital financing for CashWorks, a provider of technology for ATM-based check cashing services based in Dallas. The company raised $5m in this round, which it will use to fund the ongoing operations and growth of the business.

Global Catalyst Partners invests in Avaki
Global Catalyst Partners, Polaris Venture Partners and Sofinnova Partners have made a capital commitment to Avaki, a Burlington, Massachusetts-based company that provides a framework for the management of distributed computing systems. Avaki has raised a$4.2m in first round additional financing. It will use the proceeds from this round to continue its market expansion. This brings the total funding in Avaki to $20m.

Palomar Ventures leads round for Lombardi
Palomar Ventures has led a funding round for Lombardi Software. Lombardi is an Austin, Texas-based provider of business process management software for Fortune 1000 companies. The company has raised more than $13m in this second round of funding. New investor Palomar Ventures led the round with participation from previous investors Austin Ventures and Sanders Morris Harris. The company will use the new capital to expand sales and marketing and to continue product development.

Venrock Associates commits $5.3m to Pedestal
Venrock Associates has invested $5.3m in Pedestal Software, a system security management software company based in Newton, Massachusetts. The company will use the funds to increase its product development and to boost its sales and marketing drive.

Crescendo Ventures in Sistina funding
Crescendo Ventures has joined a number of other investors in a series B round of venture capital funding for Sistina Software. Sistina, which is headquartered in Minneapolis, provides storage infrastructure software providing data-sharing solutions for enterprise and technical computing customers. The company has raised $10m from Crescendo Ventures, Validus Partners and previous investor St Paul Venture Capital. The company will use the funds for sales, marketing, and customer support. To date, the company has raised $20m.

Exits:

Polaris Venture Capital exits Radlan investment
Polaris Venture Capital is among a group of venture capitalists that have realised their investments in Radlan Computer Communications. The Santa Clara-based provider of networking software was acquired by Marvell, a publicly held provider of broadband communications and storage products. The transaction is valued at $49.7m and will be in exchange for the remaining outstanding shares of Radlan capital stock and employee stock options. Other investors to benefit from this sale were August Capital, HarbourVest Partners, Formula Ventures, and UBS Investment Bank.

Internet

Investments:

FBR CoMotion Venture Capital leads investment in Vendaria
FBR CoMotion Venture Capital has led a second round of venture capital financing for Vendaria, a Seattle-based provider of online product demonstrations for manufacturers and retailers. The company has raised $2.3m in this round of financing including participation from individuals. Vendaria will use the new funds to increase product and business development, customer support, and sales and marketing programs.

Gateway Associates leads round for AVChem
Gateway Associates has led a $4.4m series B round of institutional financing for AVChem, a St Louis-based provider of Web-based chemical management services for the aerospace industry. Gateway Associates, a new investor in AVChem, was joined by another new investor Bush O'Donnell Capital Partners and existing investor Boeing Ventures. The proceeds from the round will be used for sales, marketing, and for the further development of the company's automated systems.

Networking

Investments:

Falconhead Capital acquires MTN
New York-based Falconhead Capital has acquired Maritime Telecommunications Network, a Florida-based company that provides satellite-based communications, networking and other services to the cruise ship and offshore oil and gas industries. The transaction was valued at approximately $30m.

Matrix Partners invests in Starent Networks
Matrix Partners has invested in a round of equity financing for Starent Networks, a Tewkesbury, Massachusetts-based provider of mobile infrastructure equipment for 2G, 2.5G, and 3G wireless networks. This third round totals $23m and was co-led by new strategic investor Samsung Electronics and return investors North Bridge Venture Partners and Highland Capital Partners. The company will use the funding to expand globally, increase product manufacturing, and expand customer support.

Warburg Pincus leads round for Elematics
US private equity firm Warburg Pincus has invested in a round of funding for Elematics, a provider of multi-carrier, multi-vendor control plane software for enabling carriers to manage and use network resources in real-time. The company is based in Beaverton, Oregon, and has raised $10m in this series B financing. Existing investor The Hatch Group and individuals also participated. The proceeds from the round will be used for further development of the company's product. The funds are expected to last well into 2004.

One Equity Partners acquires beTRUSTed
One Equity Partners, the private equity division of Bank One, has acquired PricewaterhouseCoopers' network security business beTRUSTed in a transaction valued at $30m. Terms of the deal were not disclosed. The company is focused on identity solutions and trust services and it operates several authentication, secure storage, directory management and document workflow technologies for companies' networking infrastructure.

Manufacturing

Investments:

American Capital invests in Technical Concepts
American Capital has made a $33.5m investment in Technical Concepts, a Chicago, Illinois-based company that designs and markets automated products and services for hygiene and odour control in public toilets. The funds will be used to partially finance the purchase of Technical Concepts by Liberty Partners.

Otter Capital co-leads round for AgraQuest
Otter Capital has co-led a round of venture financing for AgraQuest, a provider of pest management products for the agricultural, institutional, and home markets headquartered in California. The company has raised $9.4m in an on-going round of series G financing. SAM Sustainability Private Equity, Sustainable Performance Group and Swiss Re Investors were the other co-leads. Other previous investors taking part in the latest round include BioAsia Investments, Odyssey Fund, Burrill & Co, JSS Management and King Ranch.

Jesse Hansen & Co acquires Sagus
Jesse Hansen & Co has led the acquisition of Sagus International, a US-based school furniture manufacturer, from Harris & Hoimes, which also made a considerable reinvestment in the company. The firm has joined with Key Principal Partners and Leeds, Weld & Co, a private equity firm situated in New York and focused on education. This transaction is valued at approximately $145m. The company is based in Temple, Texas, and incorporates a number of brands including Artco-Bell and American Desk Co.

Media

Investments:

Constellation Ventures among investors in CSTV
Constellation Ventures is among a group of investors that have committed capital to College Sports Television, a 24-hour, sports network dedicated to college sport. The company has raised $25m in its series B round. The round also included Chilton Investment Company, Court Square Ventures, Allen & Co, Wasserman Holdings, Athlon Ventures, CSI Capital Management, Ackerley Partners and individuals. The proceeds from the round will be used for the company's on-air launch.

Quadrangle Capital Partners acquires GoodTimes Entertainment
Quadrangle Capital Partners has acquired GoodTimes Entertainment, the New York-based company that focuses on direct response marketing and a supplier of home video titles. The amount of the transaction remains undisclosed. The company has changed its name to GT Brands.

Providence in consortium for Comcast's cable TV assets
A private equity consortium including Providence Equity Partners, Quadrangle Group and TD Capital Communications Partners has backed cable entrepreneur Bill Bresnan's buy-out of Comcast's cable television systems in the Rocky Mountain area for a total of approximately $675m. Comcast has sold its systems in 197 communities in Montana, Wyoming, Colorado and Utah.

Sport & Leisure

Investments:

Investcorp acquires PlayPower
Global investment company, Investcorp, has acquired the recreation equipment and playground company PlayPower in a transaction valued at approximately $280m. The terms of the deal were not disclosed but the company's management team and other international investors also bought equity in the transaction. PlayPower manufactures indoor and outdoor playground systems, water slides, floating docks and running tracks.

 
Asia & Australasia

Software

Investment:

Advantage Partners acquires Intuit KK
Tokyo-based Advantage Partners has acquired Intuit KK, the wholly owned Japanese subsidiary of Intuit, for approximately $79m. Advantage will continue to develop and sell the company's products. The company manufactures software for use by small and medium-sized businesses throughout Japan.

Technology

Investments:

Technology Venture Partners invests in Engana, Genetrax and Sensory Networks
Technology Venture Partners has started the year with three new investments in Australian information technology and communications companies, as well as the investment made in US-based Peregrine Semiconductor. The firm has invested $11.35m across the four investments.

Sydney-based Engana, a provider of photonic subsystems for optical networks, received a total of $5.8m, $1.75m of which was from TVP with the rest from DB Capital Partners and Intel Capital.

Bioinformatics technology company, Genetrax, received $2.5m from TVP in a series A round that totalled $6.5m. Nanyang Ventures, Foundation Capital, M Group and individuals also participated. The funds will be used for customer acquisitions and technology development.

Sensory Networks, an enterprise security solutions developer, raised an undisclosed series A round in which TVP invested $2m. The round also included DB Capital Partners and will be used for product development.

Copyright © 2003 AltAssets

Alex Hingston is a researcher with AltAssets.

If you have any information about your latest deals or exits and would like us to cover it, please e-mail your press releases to deals@AltAssets.net or call Alex Hingston on +44 (0)20 7242 8810.