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Latest Deals: 26 February 2003 - 4 March 2003

The AltAssets weekly round up of deals done across the world. This week there were 104 active investors in 39 deals and seven exits across 15 sectors, compared to 93 active investors in 38 deals and no exits the previous week…

Active investors this week

Europe & Israel

Services

Exits:

Bridgepoint Capital exits investment in Huure
Bridgepoint Capital has exited its investment in the Huure Group, a Finland-based company that focuses on refrigeration services. The company has been acquired by Kaupthing Bank, a Nordic investment bank, and the management team led by Lars Lindell, the group managing director. Huure was previously owned by Bridgepoint, Foinco, a Norwegian investment company, Tapiola, a Finnish mutual insurance group, and the company management. Terms of the deal were not disclosed.

3i exits its investment in Travelbag
3i has exited its investment in UK-based travel operator, Travelbag. The company has been acquired by Ebookers for £55.3m, which gives 3i an IRR of 30 per cent on its original £2.5m investment that it made in Travelbag in March 2000.

Wireless

Investments:

Cazenove raises cash for Empower
Cazenove Private Equity has led a third round of venture capital financing for Empower Interactive, a London, UK-based provider of messaging infrastructure software focusing on the communications industry. The company has raised E5.75m from Cazenove, Telesystem Argo Global Capital and IDG Ventures Europe. The funds will allow the company to accelerate its global expansion plans, to increase product development and to fund future acquisitions.

Manufacturing

Exit:

3i realises investment in NC2
3i has realised its investment in NC2, a UK-based company that specialises in manufacturing filter systems and equipment for the marine sector. 3i invested $1.9m in a management buy-out from Walter Greenbank in 1989 and this sale gives it an IRR of 26 per cent.

Software

Investments:

General Atlantic Partners commits to iSoft
General Atlantic Partners, a global investment firm focused on information technology, process outsourcing and communications businesses, has committed capital to a round of financing for iSoft Group. The company, which supplies software applications to support patient, clinical and business processes for hospitals and healthcare providers, secured £34.2m from General Atlantic. The funding will enable Manchester, UK-based iSoft to accelerate its growth strategy.

Crescendo Ventures commits to round for Transitive
Crescendo Ventures has led a $10m series B round of venture capital financing for Transitive Technologies, a Manchester, UK-based company that provides software solutions. Transitive received the cash from Crescendo and another investor, Pond Ventures. To date, the company has raised $13m in two rounds, the latest capital being targeted for product development, an increase in sales and marketing and an acceleration of business development.

Digital Networks invests in Kaidara
Pan-European venture capital firm Digital Networks has invested in a second tranche for a series B round of equity financing for Kaidara, a France-based provider of advanced customer service and support solutions. The second tranche closed on E4m, bringing the total for the round to E8m, which will support the company's expansion in Europe and North America. Other investors in this round included Galileo, CDC Ixis Innovation, ACE and Rothschild.

Telecommunications

Exits:

GIMV exits Mobistar
Belgian private equity firm GIMV has realised its investment in Mobistar, a telecommunications company headquartered in Belgium. Other investors to exit Mobistar completely included Gevaert, KBC Bank and KBC Insurance. Cobepa Group have retained 50 per cent of its original stake, or four per cent of the company. GIMV's capital gains will amount to E34.7m with its net asset value rising by E11.5m.

Food & Beverage

Investments:

Investindustrial takes 40 per cent in Italian winery
Investindustrial has acquired a 40 per cent stake in Ruffino, a family-owned Italian winery and one of the most established brand names in markets outside Italy, for  E70m. The company will remain under the control of various family members. Following the commitment from Investindustrial, the winery is now planning further acquisitions as well as concentrating on an internal growth strategy. Landmark Partners also participated in this round of financing.

Exit:

Electra realises investment in Tom Cobleigh
Electra Partners Europe, a European private equity specialist, has exited its investment in Tom Cobleigh, the managed pub company situated in the Midlands, UK. Electra Partners sold its 78 per cent stake to Spirit Group for £55m, having originally backed a management buy-in of the company from Rank in 2000.

Retail

Exits:

3i exits The Factory Shop
3i has exited its investment in The Factory Shop, a UK-based retail company, through a trade sale to Poundzone, a discount retail company located in the North East. The financial details of the transaction have not been disclosed. Bridgepoint Capital also realised its investment with this sale.

North America

Telecommunications

Investments:

Sierra Ventures leads round for Valere Power
Sierra Ventures has led a round of venture financing for Valere Power, a Richardson, Texas-based provider of power distribution systems for the telecommunications industry. The company has closed its series C round of funding with $11m, the proceeds of which will be used for sales and new product development. Sierra Ventures, an existing investor in Valere, was joined by other existing investors Alcatel Ventures and Dali Hook Partners. To date, the company has raised $27.5m.

Technology

Investments:

3i among investors in BoostWorks
3i is among a group of investors for the latest round of financing for BoostWorks, a Californian company that provides application acceleration solutions. The company has secured approximately $9m in the round from investors such as BNP-Paribas, Innovacom, SPEF Ventures, MC Capital and Mitsubishi International. The new capital will help to support the company's plans for expansion and growth.

Prism Venture Partners commits to Zia
Prism Venture Partners has committed funds to Zia Laser, an Albuquerque-based developer of quantum dot semiconductor laser technology. Zia has raised $5.4m in series B funding from Prism Venture Partners and RWI Group. The company, which  spun out of the University of New Mexico, has now raised $11.5m overall, according to Private Equity Week.

SC Biosciences invests in Quantum Dot
Singaporean SC Biosciences has invested in a series B round of financing for Quantum Dot, a developer of technology for biological measurements for genetic analysis, diagnostics and drug discovery. SC Biosciences is the venture investment group of Sumitomo. The company is located in Hayward, California, and will use the new funds for product development. To date, it has raised $37.5m in two venture rounds before this latest addition from SC Biosciences.

BlueStream Ventures invests in Wakesoft
BlueStream Ventures has invested in Wakesoft, a San Francisco-based company that supplies service-oriented application architecture for building and maintaining enterprise applications and services. The company has secured $7.65m in this second round, which it will use to support the expansion of its sales and marketing efforts and to meet customer demand.

Healthcare & Life Sciences

Investments:

MDS Capital leads financing for Twinstrand
MDS Capital has led a second round of venture capital financing for Twinstrand, a Vancouver-based biopharmaceutical company that develops drugs for the treatment of cancer and other life-threatening diseases. The company secured $10m, the proceeds of which will be used to complete pre-clinical work on its lead product, commence clinical trials on other products and to identify new products. Ensis Growth Fund, GrowthWorks and the Western Technology Seed Investment Fund also participated.

North Castle Partners backs acquisition of Comprehensive Addiction Programmes
North Castle Partners has backed CRC Healthcare Corp's acquisition of Comprehensive Addiction Programs, an operator of 16 residential and outpatient addiction treatment facilities located in Pennsylvania. North Castle Partners led the deal's $40m equity syndicate. The $70m senior debt tranche was led by BNP Paribas and Madison Capital, according to Private Equity Week.

The Kauffman Fund returns to reinvest in Ardais
The Kauffman Fund is one of a group of existing investors that have returned to invest in a series C round of equity financing for Ardais Corporation, a Lexington, Massachusetts-based company that provides products and services for drug discovery. The round totalled $13.4m and included Advanced Technology Ventures, Advent Health Care and Life Sciences, EGS Healthcare Capital Partners, Bessemer Venture Partners, Pequot Private Equity Fund, BioVentures Investors and Silicon Valley Bancshares. The capital raised will go towards growing the business by expanding its clinical genomics capabilities.

Emerging Technology Partners provides funding for Tranzyme
Emerging Technology Partners has invested capital in a round of equity financing for Tranzyme, a Birmingham, Alabama-based developer of technologies for genomics, proteomics, and drug discovery applications. The company has secured $1.3m in a convertible bridge round which closed in late December, and was provided by existing shareholders, including Emerging Technology Partners, Pacific Rim Ventures, and Paradigm Ventures. Three new investors also participated in the form of Greer Capital, Research Triangle Ventures, and Quark Biotech. The new funds will be converted to equity in the company's series B round funding.

LLR Partners leads round for ExcelleRx
LLR Partners has led a recapitalisation round of financing for ExcelleRx, a Philadelphia-based provider of consultation and product distribution services for the healthcare markets. The company has raised $37m in this round. LLR Partners led the round with an investment of $15m. Other participants in the round were Wachovia Capital Partners, which invested $12m, and Primus Venture Partners, which invested $10m. Proceeds from the round will be used for the growth of sales and marketing and technology infrastructure groups.

Services

Investments:

Riverside acquires environmental consulting company
US-based private equity firm The Riverside Company has acquired Entrix, an environmental consulting company headquartered in Houston, Texas. The company specialises in water resource management, environmental risk management, natural resource management and facility permitting and compliance. Financial details of the transaction were not disclosed.

Riverside acquires Jackson Marketing Group
The Riverside Company has completed the leveraged buy-out of the Jackson Marketing Group, an event planning company that specialises in corporate conferences, incentive meetings, training programmes and local, regional or national sales meetings. The acquisition is an add-on to Conferon, a Riverside platform company.

Media

Investment:

Evercore Capital Partners recaps American Media
Evercore Capital Partners has teamed up with Thomas H Lee Partners to recapitalise Evercore portfolio company American Media. Both private equity firms will each fund approximately half of the $508m equity stake in the transaction. The recapitalisation is structured so that some of the company's original investors will get a return on their investment while Evercore reinvests from an entirely different fund.

Software

Investments:

Charles River Ventures invests in data integration company
Charles River Ventures has invested in Venetica, a Charlotte, North Carolina-based provider of content integration software. Venetica secured $7m in its series A funding from Charles River Ventures and General Catalyst Partners. The proceeds from this round will be used for sales, marketing and product development.

Ignition Partners funds Pure Networks
Ignition Partners has contributed to a round of equity financing for Pure Networks, a Seattle, Washington-based company that provides software and services that facilitate home networking. Pure Networks raised $2m this round, some of which was also committed by individual investors. The funding will be used to bring its first suite of products to the market and to fuel its sales and business development efforts.

Granite Ventures participates in round for Convio
Granite Ventures has joined with Austin Ventures and Silverton Partners in a third round of venture capital funding for Convio, an online software and services provider located in Austin, Texas. The company helps non-profit organisations use the internet to attract, motivate and retain individuals to donate and provide other types of support. The round totalled $5.6m, which will be used to develop its product range and to improve client support.

Council Ventures leads round for EVault
Council Ventures has led a series C round of equity financing for EVault, a Walnut Creek, California-based provider of disk-based data protection and recovery software and services. The company has raised more than $6m from Council Ventures, Massey Burch, The Business Engineering, Science, & Technology Discoveries Fund, River Cities Capital Funds and Jemison Investment. The proceeds from the round will be used for sales, product development, and customer service, according to VentureWire.

Matrix Partners and North Bridge fund AppIQ
Matrix Partners and North Bridge Venture Partners have returned for a second round of funding for AppIQ, a provider of storage management software. The company, which is headquartered in Burlington, Massachusetts, has secured $12m in this round and will use the funds to expand its sales and marketing activities and to increase its engineering capacity. The latest capital brings the company's overall money raised to $20m.

GrandBanks and Kodiak lead round for CXO
GrandBanks Capital, a venture firm established in partnership with Softbank and Mobius Venture Capital, and Kodiak Venture Partners have co-led a round of financing for CXO Systems. Based in Boston, Massachusetts, the company provides web-based software to help company executives track a number of company functions in real time. $4.8m was raised in this round, the proceeds of which will go towards fuelling sales growth and ongoing software development efforts.

Egan-Managed Capital among investors in Centerstone Software
Egan-Managed Capital is among a group of investors in the latest round of financing for Centerstone Software, a provider of workplace resource management software solutions. The company, which is situated in Westwood, Massachusetts, secured $3.2m in financing from Egan, Trans-National Group Services, Corning Technology Venture Partners and the Massachusetts Technology Development Corporation. Centerstone will use the new funds to support sales, marketing and product development initiatives.

Intersouth Partners leads round for Artifact
Intersouth Partners has led a round of equity financing for Artifact, a Baltimore-based provider of software. Its product range allows software development companies to reuse software components. The company has raised $4.75m in this series A round of funding. Mid-Atlantic Venture Funds and Draper Atlantic also participated alongside Intersouth. The new capital will be used for general corporate purposes, for research and development and for bringing its product to the marketplace.

Morgenthaler Ventures invests in Panscopic
Morgenthaler Ventures has led a $10m second round of venture capital financing for Panscopic, a San Francisco-based company that provides analytic reporting solutions. Morgenthaler, a new investor in the company, was joined by existing investors Doll Capital Management and Discovery Ventures. Gary Little, general partner at Morgenthaler, has joined Panscopic's board of directors. Proceeds from this round will be used for product development, sales, marketing and customer support operations.

Ignition Partners invests in Consera
Ignition Partners has invested in a round of financing for Consera Software, a US-based software company that provides a number of solutions that allow companies to effectively manage their data resources and recovery systems. The company has raised $10.4m in this round. Other investors included Intel Capital and Matrix Partners.

Manufacturing

Investment:

Morgenthaler Partners acquires MPI International
Morgenthaler Partners has acquired MPI International, a Rochester Hills, Michigan-based provider of high-precision industrial components. The acquisition from Klockner Mercator Maschinenbau GmbH, a subsidiary of Klockner Werke AG in Germany, allows MPI to become a stand-alone company. The terms of the deal were not disclosed.

Telenor Ventures invests in PolarSat
Telenor Ventures has invested in a first round of venture financing for PolarSat, a Montréal-based manufacturer of satellite communications equipment. The company raised $9m in its first round of financing since the management of NSI Communication Systems bought out the division and relaunched it under the name PolarSat. Investors in this round of financing were Telenor Ventures, the venture capital arm of Telenor, Infinium and Agilis Communication Technologies, a subsidiary of Singapore Technologies Electronics. The proceeds of the round will be used to support operations.

Networking

Investments:

Starlight commits to MSPI
Starlight Technology Partners has committed funds to a round of equity financing for Managed Service Partners International, a Willow Grove, Pennsylvania-based company that provides remote network management and monitoring solutions. The company secured $2m in the round, the proceeds of which it will use to expand its current marketing and sales efforts and to enhance its technology.

Concord Venture Capital in round for Flexlight
Concord Venture Capital has invested in a round of financing for FlexLight Networks, a company that provides optical networking systems and is located in Kennesaw, Georgia. The company has raised $3m as part of its series B round. Existing investors Concord Venture Capital and Coral Ventures provided the capital. The company will use the funding to add more sales and marketing staff and for research and development.

Internet

Investment:

Accel and Highland invest in Coremetrics
Accel Partners and Highland Capital Partners have committed a total of $9m to a fifth round of financing for Burlingame, California-based web services provider, Coremetrics. The company provides marketing analytics solutions for data-driven companies and will use the new capital to expand its sales and marketing efforts, fund new product development initiatives and support the company's entrance into new markets.

Steamboat Ventures invests in Gilian's third round
Steamboat Ventures has invested in a third round of equity funding for Gilian Technologies, a Redwood City, California-based provider of web applications and content security. Ascend Technology Ventures, Evergreen Partners and Pitango Venture Capital also participated. The company secured $5m in this round, which will be used to expand its technology and marketing initiatives.

Financial Services

Exits:

CSFB Private Equity realises its investment in Endurance
CSFB Private Equity is one of a number of investors that have realised their investments in Endurance Specialty Holdings, an insurance and reinsurance company that was set up in Bermuda post 11 September 2001. The company has placed 9.6 million shares on the New York Stock Exchange at $23 per share. Other investors that have exited this investment are Capital Z Financial Services, GIC Special Investments, General Motors Investment Management, Golden Gate Capital, Lightyear Capital, Reservoir Capital Group, Texas Pacific Group and Thomas H Lee Partners.

Agriculture

Investment:

ASCP invests in Ag Services
American Securities Capital Partners has committed $70m in a PIPE transaction to Ag Services, a Cedar Falls, Iowa-based company that supplies crop input financing and agricultural input, including seed, chemicals and fertilizer to primarily corn and soy bean producers throughout the US. ASCP is the private equity arm of American Securities, a family office founded in 1947 by William Rosenwald to manage his share of his family's Sears Roebuck fortune.

Asia & Australasia

Telecommunications

Investment:

Walden International commits to United Platform Technologies
Global private equity firm Walden International has led a round of funding for United Platform Technologies, a Beijing, China-based telecom equipment and solutions provider. The company received $50m in its series A funding from a group of investors, which also included Doll Capital Management, Intel Capital, Jerusalem Venture Partners, Morgenthaler Ventures, New Enterprise Associates, Shanghai Alliance Investment, Sycamore Ventures and Sumitomo Electric Industries.

Services

Investment:

Silver Lake Partners invests $200m in Flextronics
Silver Lake Partners has committed $200m to Flextronics, a Singapore-based provider of operational services focused on delivering design, engineering, test, manufacturing and logistic solutions to technology companies. The investment comes in the form of a junior subordinated note due in March 2008. The company intends to use this funding for general corporate purposes and Jim Davidson, a founding member of Silver Lake Partners, has joined the company's board of directors.

Internet

Investment:

TMT Ventures commits to EMS-Global
New Zealand venture capital firm TMT Ventures has made two recent investments. The firm has committed $5m to a second round of institutional financing for EMS-Global, a provider of secure internet connectivity services. The company is located in Auckland, New Zealand, and already has 3i on board as its first investor. The proceeds from this latest funding will go towards product development.

TMT has also made an investment in Esphion, another New Zealand-based company that specialises in network security software applications. The details for this transaction have not been disclosed. Both transactions were completed through the Venture Investment Fund, which is managed by TMT Ventures.

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.