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Latest Deals: 12 February 2003 - 18 February 2003

The AltAssets weekly round up of deals done across the world. This week there were 110 active investors in 42 deals and three exits across 12 sectors…

Active investors this week

Europe

Property

Exit:

GE Capital sells stake in MEPC
GE Capital has realised its investment in UK-based property company MEPC. The firm has sold its 50 per cent stake to Hermes Pension Management, which now holds 100 per cent, having acquired the original 50 per cent at the same time as GE Capital. MEPC will continue to run under its own management. The terms of the transaction have not been disclosed, according to Venturedome.

Software

Investments:

Early Stage Partners invests in SupplierInsight
Early Stage Partners has joined a group of investors in a round of venture capital financing for SupplierInsight, a Cleveland, Ohio-based company that provides supply management software applications. The company secured $2m from Early Stage, Forest City Enterprises, Symark, Glengary Ventures, Jumpstart and the Marcus Partnerships. The new capital will enable the company to increase its direct sales operations and marketing activities and to expand its software application development.

Trinity Venture Capital returns to invest again in Sepro
Trinity Venture Capital, an existing investor in Sepro, has returned to reinvest in the company in its latest round of financing. Sepro is a Dublin-based provider of rating and billing software for use by wireless carriers. The company has raised E3m in this round. Trinity Venture Capital was joined by new investor AIB Equity and individual investors also participated.

China Development Industrial Bank commits to IXI
China Development Industrial Bank has committed capital to a third round of funding for IXI Mobile, the financial details of which were not disclosed. The company, which is headquartered in Redwood City, California, provides wireless software solutions for mobile networks. The latest capital, which was also provided by Intel Capital, will be used to speed up international product development and marketing strategies.

White Rose Technology Seedcorn Fund invests in University of Leeds spin-out
White Rose Technology Seedcorn Fund, managed by Aberdeen Murray Johnstone Private Equity, has invested £300,000 in Icona Solutions, a spin-out from the University of Leeds in the UK. The company, which develops software solutions that visualise the impact of manufacturing variation on product quality, targets users in the automotive industry and major software vendors. WRTSF is owned by the Universities of Leeds, Sheffield and York.

Technology

Investments:

MTI Partners leads round for Sarantel
MTI Partners and VCF Partners have co-led a first closing of a new round of funding for Sarantel, a UK-based company that develops and manufactures miniature antennas for the mobile wireless market. The funding will be used for marketing and to introduce the company's new designs. MTI and VCF were supported by eTechnology VCT in this transaction.

Manufacturing

Investments:

Electra Partners Europe completes recap of Oase Wübker
Electra Partners Europe has completed the recapitalisation of Oase Wübker, a Germany-based supplier of water gardening products and accessories. The total value of the transaction was E136m and represents the first buy-out conducted in Europe by the Electra Europe Fund. Oase's products include the pumps in the new fountains at Somerset House in London and in the Manequin Pis in Brussels.

Secondary buy-outs

Banexi Capital Partenaires backs MBO of French manufacturing firm
Banexi Capital Partenaires has backed the MBO of FTFM La Toulousaine, a Toulouse, France-based company that manufactures safety shutters and gates for stores and shops and is involved in the residential and industrial sectional doors market. Banexi and the company's management have acquired 100 per cent of the company from 3i and Spef/Banques Populaires.

Exit:

HSBC Private Equity exits investment in Ampafrance
HSBC Private Equity has exited its investment in Ampafrance, a France-based manufacturer of baby products. The company, whose products include pushchairs and car seats, has been sold to Canadian company Dorel Industries in a transaction valued at $240m.

Healthcare & Life Sciences

Investments:

High Tech Private Equity invests in MIKA Pharma
High Tech Private Equity has invested an undisclosed amount in MIKA Pharma, a Germany-based biopharmaceutical company that develops dermal, transdermal and buccal application systems for pharmaceuticals. The capital will allow MIKA to develop new applications.

GIMV and InterWest Partners lead round for Diatos
Belgian private equity firm GIMV and InterWest Partners have co-led an equity financing for Diatos, a Paris-based company that develops intracellular and intranuclear peptide-based drug delivery products for cancer and infectious diseases. The round totalled E15.5m, the proceeds of which will be used to accelerate the development of the company's core research programmes and to move its core products through clinical trials. Other participants in this round included Société Générale Asset Management, AGF Private Equity, Sopartec and Sofinnova Partners.

MVM invests in Domantis
Life science investment specialist, MVM, has committed capital to a round of financing for Domantis, a Cambridge, UK-based domain antibody drug discovery company. The company received a total of $5m from MVM and Peptech, an Australian biotechnology company.

High Tech Private Equity commits capital to DoNatur
High Tech Private Equity has committed capital to DoNatur, a Germany-based pharmaceutical company that has discovered and patented a new chemical entity to treat arthritic pain and inflammation. The amount of capital invested remains undisclosed but it will go towards the development of the company's therapeutic products.

North America

Wireless

Investments:

Motorola funds Clarisay
The venture capital arm of Motorola, Motorola Ventures, has made an equity investment in Clarisay, a Schaumberg, Illinois-based company that develops surface acoustic wave component technology. Firsthand Capital also participated although full details of the transaction were not disclosed.

Technology

Investments:

Sequoia Capital leads round for Ikanos
Sequoia Capital has led a group of investors in the series D financing of Ikanos Communications, a Fremont, California-based company that develops silicon chips for use in broadband networks. The round totaled $30m and brings total funding to date to $82m. Other participants included Greylock Partners, Intel Capital, JP Morgan Partners, Presidio Venture Partners, Ridgewood Capital, Telesoft Partners, VentureTech Alliance and Walden International. Ikanos will use the funding to support volume shipments of its chipsets.

Baird Capital Partners backs acquisition of Southwest Test
Baird Capital Partners has directly supported Circuit Check in its acquisition of Southwest Test, a Minnesota-based company that provides a range of electronic test fixtures and related technology. Circuit Check is itself a manufacturer of test fixtures and this acquisition looks set to create one of the largest fixture manufacturers in North America offering electronics test solutions to multiple end markets.

Austin Ventures leads round for MEMX
Austin Ventures has led a series B round of equity financing for MEMX, a Palo Alto, California-based company that develops MEMS, or Micro-Electro-Mechanical Systems, and MEMS processes. The company has secured $8m in this round and other participants included Sequoia Capital and Agilent Technologies. MEMX was spun out of Sandia National Laboratories in 2000.

New Enterprise Associates invests in Cariocas
New Enterprise Associates has invested in Cariocas, a San Francisco-based promotion platform provider. Cariocas has raised $5.25m in its second round, which was led by New Enterprise Associates and Odyssey, both current investors, as well as new investor Société Générale Asset Management, according to Private Equity Week.

Covington Capital in round for IceFyre
Covington Capital has led a $19m third round of financing for IceFyre Semiconductor, an Ottawa, Canada-based company that develops wireless local area network products. This latest financing was also led by Motorola Ventures and included TD Capital Technology Partners, Prism Venture Partners, Kodiak Venture Partners, VenGrowth Capital and Business Development Bank of Canada. The investment will be used to expand sales, marketing and operations.

Healthcare & Life Sciences

Investments:

MPM Capital commits to Synergia Pharma
MPM Capital has committed $2m to Synergia Pharma, a San Francisco-based biopharmaceutical company. The company develops therapeutics for the treatment of migraines and other neurological disorders. The financing will allow the company to take its product to clinical trials.

Select Capital Ventures involved in financing for medical facilities operator
Select Capital Ventures has participated in a round of venture capital financing for Healthcare Management Directions, a Nashville-based medical facilities operator. HMD has raised $8.1m in this latest round. Investors included CB Health Ventures, SSM Ventures and Select Capital Ventures. Russell Carson of Welsh Carson Anderson & Stowe also participated.

The Sprout Group commits to US pharmaceutical company
The Sprout Group is among a group of investors that have committed capital to Ribozyme Pharmaceuticals, a Boulder, Colorado-based company that focuses on nucleic acid technology to develop products that target human diseases. The company has raised $48m in this PIPE investment, which it will use to accelerate its research programmes and to advance its products to clinical trials. Also involved in this financing were Venrock Associates, Oxford Bioscience Partners, Techno Venture Management and Granite Global Ventures.

JP Morgan Partners co-leads round for VitaGen
JP Morgan Partners and Tullis-Dickerson have co-led a $2.4m recapitalisation round for VitaGen, a Californian biotechnology firm developing an artificial human liver for treating liver disease and failure. The financing has been provided by its existing shareholders. The round included Aethena Group, Alta Partners, Banc One, BCM Technologies, BD Ventures, Paragon Venture Partners, Radius Ventures, Triad Ventures and individuals.

Techxas Ventures leads round for molecular diagnostics company
Techxas Ventures has led a $6m series C round of equity financing for Bacterial BarCodes, a Houston-based molecular diagnostics company focused on developing microbial strain typing and identification systems. The round also included Koch Ventures, Pacific Rim Ventures and BioTex Finance. The proceeds from this round will be used to launch products in the clinical microbial typing market and continue to develop new products.

New Enterprise Associates provides capital for Aradigm
New Enterprise Associates has invested capital in a $15m round of venture capital financing for Aradigm Corporation, a Hayward, California-based company that is developing an aerosol-based drug delivery system. The round also included Special Situations Fund and will be used to further core product development, working capital, manufacturing and general operations.

Kline Hawkes leads round for LivHome
Kline Hawkes has led a series B round of equity financing in LivHome, a Los Angeles-based provider of home-care services for elderly people. The company has raised $5.85m in an extension to its series B round. Some of this new capital has been used to acquire the assets of San Diego-based Age Concerns, which provides similar services. Kline Hawkes invested $3m investment, while existing investors Bank of America Venture Partners and Tullis-Dickerson each invested $1m.

Investissement Desjardins has committed capital to Galileo Genomics
Investissement Desjardins has invested in Galileo Genomics, a biotechnology company that conducts research for the identification of disease-causing genes. Galileo has raised approximately $3.3m in this series C financing that the company will devote to on-going research for the discovery of disease genes. Previous investors taking part in this round included Bio Fund, Investissement Desjardins, BTF, MVI, and HBM BioVentures.

Domain Associates finances ATI Medical
Domain Associates has joined a group of investors in a round of financing for ATI Medical, a provider of thermal therapy devices for the treatment of soft tissue. The company, which is located in San Diego, California, has secured $1.85m in funding. Existing investors that participated in the latest funding included Domain Associates, Englewood Ventures, Johnson & Johnson Development, ProQuest Investments, and Trian Equities.

Services

Investment:

The Carlyle Group invests in Worldzen
The Carlyle Group has made a capital commitment to Worldzen Holdings, a Chicago and Bangalore, India-based company that specialises in business process outsourcing in the financial services, insurance and healthcare industries. The firm has committed $4m to Worldzen, which it will use to expand its services in Bangalore.

Food & Beverage

Investment:

Peachtree funds pecan processor
Peachtree Equity Partners has made a $10m commitment to the Young Pecan Company, a Florence, South Carolina-based pecan processor. In conjunction with Peachtree's investment, Young received a new $45m senior debt facility, according to Private Equity Week.

Software

Investments:

B Cubed Ventures funds Aravo
B Cubed Ventures and Blue Hill Ventures have made investments in a series A round of financing for Aravo Solutions, a Californian company that provides supplier relationship management solutions. The funding totalled $1m and was led by The Angels Forum/The Halo Fund. The proceeds from this round will fund continued product development and will support the company's sales and customer service efforts. Aravo has raised $4m to date.

New Enterprise Associates commits capital to ClearCommerce
New Enterprise Associates has committed capital to ClearCommerce's latest round of venture capital financing. ClearCommerce is located in Austin, Texas, and provides risk management and payment processing software for online retail. The company has secured $3m in this round from NEA, Voyager Capital, Financial Technologies Ventures and Internet Capital Group. The funding accelerates the company's plans to develop its sales on a global basis and allows it to enhance its online payment fraud prevention software.

Sequoia Capital funds Plaxo
Sequoia Capital has invested capital in Plaxo, a software company headquartered in Mountain View, California, and set up by the co-founder of Napster. The company has developed a software that is compatible with Microsoft Outlook and enables the user to update their contacts' details via e-mail. Plaxo secured $1.8m in this round, bringing its current total to date to $3.8m.

Noro-Moseley Partners commits to Relativity
Noro-Moseley Partners has committed funds to Relativity, a Cary, North Carolina-based provider of legacy modernisation software. Relativity has raised $2m in this fifth round of funding. Previous investors Noro-Moseley Partners, Wakefield Group, and Intel Capital provided the capital. The company has raised around $19m in venture capital to date.

Trident Capital funds Epicor's series D financing
Trident Capital has funded the $5.7m series D financing of Epicor Software Corporation. Epicor is situated in Irvine, California, and provides integrated enterprise software solutions for the mid-market. This PIPE transaction allows the company to pursue its growth strategy through acquisitions.

Saratoga Partners funds NAT Inc
US private equity firm, Saratoga Partners, has made a capital investment in NAT Inc, a Des Plains, Illinois-based provider of software for administering warranty and service contracts on consumer products. Terms of the transaction were not disclosed, according to Private Equity Week.

Internet

Investment:

Advantage Capital invests in Invision.com
Advantage Capital has committed an undisclosed sum of money to Invision.com, a US-based managed service provider to the Long Island and New York Metro markets. The company provides Web development, hosting, internet connectivity, media streaming solutions, and staffing services, according to Venture Reporter.

Networking

Investments:

ComVentures invests in Kagoor
ComVentures and VantagePoint Venture Partners have jointly led a round of venture financing for Kagoor Networks, a developer of network control systems. The company, based in San Mateo, California, has raised $7.5m in this third round, which will allow the company to focus on sales and the deployment of its core product range.

APV Technology Partners invests in STSN
APV Technology Partners has joined a group of investors in STSN, a Salt Lake City-based provider of high-speed data communications to hotels and conference centres. The company has secured $15m in new financing from lead investor VantagePoint Venture Partners, APV Technology Partners and Siemens Project Ventures.

Manufacturing

Investments:

Apax Partners backs PVH in its acquisition of Calvin Klein
Apax Partners has backed Philllips-Van-Heusen's acquisition of Calvin Klein, a clothing manufacturer based in New York. Apax has committed $250m to Phillips-Van-Heusen in equity with a further $125m pursuant to a two-year secured note. The acquisition will contribute to PVH's growth plans for 2004.

Warburg Pincus completes polyester PIPE
US private equity giant, Warburg Pincus, has completed a $125.4m PIPE deal for Wellman, a US-based manufacturer of polyester packaging products and polyester fibres. The funding will be used to relieve some of the company's existing debt.

Telecommunications

Investment:

Edison Venture Fund invests in Emerging Technologies Group
Edison Venture Fund has invested in Emerging Technologies Group, a telecommunications software provider situated in Vienna, Virginia. The com0any has raised $3m for this round, in which Edison was the sole investor. The funding will enable the expansion of the company's sales and marketing efforts, as well as aid in the acceleration of its product development.

Sport & Leisure

Investments:

TD Capital among investors in ice hockey team
TD Capital is among a group of investors that have acquired shares in the Toronto Maple Leafs hockey club. Steve Stavro has sold his controlling interest to a group of existing investors that includes BCE Inc's Bell Globalmedia, Teachers' Merchant Bank, the private equity arm of Ontario Teachers Pension Plan, and TD Capital. Ontario Teachers now becomes the largest shareholder in the company with 58 per cent, followed by Bell Globalmedia with 15 per cent and TD Capital with 14 per cent.

 
Asia

Technology

Investment:

Intel Capital invests in round for Optware
Intel Capital has invested in a $9.1m financing round for Yokohama, Japan-based Optware, which develops an optical disc device for data storage. The company will use the funding to continue the development of its product range. Apax Globis Partners, Chuo Mitsui Capital, Jafco, SMBC Capital, and Konica also participated in the round, according to VentureWire.

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.