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Latest Deals: 5 March 2003 - 11 March 2003

The AltAssets weekly round up of deals done across the world. This week there were 145 active investors in 54 deals and three exits across 12 sectors, compared to 104 active investors in 39 deals and seven exits the previous week…

Active investors this week

Europe & Israel

Media

Investment:

ISIS Equity Partners commits to RLA Media
ISIS Equity Partners has acquired a minority stake in RLA Media, a UK-based marketing services agency that provides a range of media planning, buying and creative services to various brand names, such as Volkswagen and Audi. The transaction, the value of which was not disclosed, will allow the company to expand into new markets.

Secondary buy-out:

Cinven sells Odeon cinemas for £431m to WestLB-led syndicate
European private equity firm Cinven has sold Odeon Cinemas to a syndicate of investors led by WestLB for £431m. The transaction reinforces the prevailing trend for secondary buy-outs to provide liquidity for private equity firms. Cinven bought Odeon from the Rank Group in February 2000 and merged it with its existing investment in ABC Cinemas. It then financed a £75m modernisation, refurbishment and new-build programme.

Healthcare & Life Sciences

Investments:

Banexi Capital Partenaires and 3i invest in Vetoquinol
Banexi Capital Partenaires has teamed up with 3i in a E40m round of equity financing for Vetoquinol, a Lure, France-based pharmaceutical laboratory that is dedicated to animal health. Its focus is predominantly on treatments for pets and cattle. Both Banexi, through its Middle Market Fund II, and 3i have taken an equal stake in the company.

Sitka Healthcare VCT completes investment in Eyebright
Sitka Healthcare has completed a $500,000 investment in Eyebright, a UK-based company that provides day surgery facilities to the private health sector and the National Health Service and specialises in eye surgery. Kevin Allen, finance director at Sitka, has joined Eyebright's board of directors.

Financial Services

Investment:

Innova Capital backs PolCard
Innova Capital, the Polish venture capital firm, has acquired PolCard, a Poland-based company that provides debit and credit card transaction services. Innova Capital has teamed up with GTECH, a US-based lottery systems company, to make the acquisition, the value of which is $62m.

Exits:

Royal Bank Private Equity realises investment in training company
Royal Bank Private Equity, the private equity arm of the Royal bank of Scotland, has exited its investment in the Financial Training Company, a UK-based company that provides accountancy and financial services training. The company was acquired by Kaplan, a US-based financial services training company, for £55.4m.

Software

Investment:

Big Bang leads round for DataCenterTechnologies
Big Bang Ventures and NIB Capital Private Equity have co-led a round of equity financing for DataCenterTechnologies, a Belgian company that provides data protection software. The company has secured E3.3m in its first round of financing, which will be used to build up the company's sales and marketing activities, its distribution channel and its customer support infrastructure. Other participants in the round included NeSBIC CTE Fund, KBC Securities, Partech International and TrustCapital Technologies.

Wireless

Investment:

Applied Materials Ventures involved in M-Stream's financing
Applied Materials Ventures has invested in a series A round of equity financing for M-Stream, an Israeli company that develops wireless products to enhance cellular communications. The $1.5m round included Broadcom Corp and will be used to extend the company's reach beyond the domestic market.

Networking

Exit:

Target Partners realises investment in WLAN AG
Target Partners has realised its investment in WLAN AG, an operator of wireless local area networks in Germany. The company was founded in February 2002 and received a E9m investment from Target Partners, Viventures and Wellington Partners in September 2002. The three private equity firms have all exited their investments through the sale to Swisscom Eurospot, a subsidiary of telecom operator Swisscom.

Manufacturing

Investment:

Soros Private equity acquires Bayer and Degussa's latex business
Soros Private Equity has acquired the latex manufacturing business, PolymerLatex, from Bayer and Degussa. PolymerLatex is based in Germany and manufactures latex products in the paper, moulded foam and speciality applications fields. The sale of PolymerLatex by Bayer completes its programme of divestments, which it began in 2001, to concentrate on its core business.

Retail

Investment:

Advent International funds buy-out of Danish furniture retailer
Advent International has funded the buy-out of ILVA, a furniture retail company based in Denmark. Advent International has joined forces with Martin Toogood, an experienced retailer from the UK, to develop ILVA's business in other European markets, particularly Sweden and the UK. The transaction has been valued at E90m.

North America

Telecommunications

Investments:

Star Ventures invests in Cedar Point
Star Ventures has led a round of equity financing for Cedar Point Communications, a Derry, New Hampshire-based company that develops integrated voice and multimedia switching technology for the cable industry. The company has secured $25m in this second round from investors including Charles River Ventures, Battery Ventures, Comcast Interactive Capital and Ascent Ventures. The funds will go towards the continued development and commercialisation of the company's product range.

Telus Ventures commits to SentitO
Telus Ventures has committed funds to a series B round of financing for SentitO Networks, a Rockville, Maryland-based company that develops switching solutions for the telecoms industry. The round totalled $14m and included Core Capital Partners, Kodiak Venture Partners, Mid-Atlantic Venture Funds, Technology Venture Partners and Inflection Point Ventures. The latest round, which will be used to support the company's network deployments and technology trials, brings total funds raised by SentitO to $25m.

KKR returns to NewSouth Communications
Kohlberg Kravis Roberts & Co has returned to reinvest in NewSouth Communications. KKR is one of three return investors to this latest round for the integrated communications provider from Greenville, South Carolina - the other two being Wachovia Capital Partners and Vaxa Capital Partners. New investors in the company included MC Venture Partners and the Quadrangle Group. The $62.5m round will be used to fund the continued growth of NewSouth.

Technology

Investments:

Intel Capital funds rovingIP.net
Intel Capital has backed a round of financing for rovingIP.net, a company that provides clearinghouse services for WI-FI service providers. The value of the deal has not been disclosed but it does become the fourth investment made by the Intel Communications Fund in Wi-Fi related companies since the beginning of the year, the other three being Vivato, Pronto Networks and Broadreach Networks.

Hoya Holdings commits to Optinetrics
Hoya Holdings has led a round of venture capital financing for Optinetrics, a Los Angeles-based company that develops optical components for the telecommunications and aerospace markets. The company has secured $3m in this first close of its series C round of funding, bringing its total funds raised to $17.7m. Tech Coast Angels and Smart Technology Ventures also participated in the round, which will be used to expand its market base.

PTI Ventures invests in Rackable Systems
PTI Ventures has made a capital commitment to Rackable Systems, a San Jose, California-based company that provides server and storage solutions. Rackable Systems has raised $1.5m from PTI in its first round in addition to an earlier tranche led by Parthenon Ventures. The funds will be used for sales and marketing and product development.

VantagePoint backs power management company
VantagePoint Venture Partners has backed a series B round of equity financing for iWatt, a Los Gatos, California-based power management company that develops and markets digital controllers for power supplies. iWatt secured $14.5m in this round, which also included Horizon Ventures, PTI Alliance and Sigma Partners, as well as several private investors. The capital will be used to fund the company's product development and to facilitate its introduction to electronics manufacturers.

Invesco Private Capital invests in SigmaTel
Invesco Private Capital has invested in a round of equity financing for SigmaTel, a semiconductor company based in Austin, Texas. The round totalled $7m and included several existing investors, including Invesco, Battery Ventures and TeleSoft Partners. The funds will be used for reducing outstanding debt and for ongoing operations to support the company's expansion.

Intel Capital invests in Vivato
Intel Capital has invested in Vivato, a wireless networking infrastructure company. Headquartered in San Francisco, Vivato raised $3m from the Intel Communication Fund, bringing its total funds raised in its first round to $29m. The capital will help the company accelerate product development and expand sales and marketing efforts. The company manufactures Wi-Fi switches that facilitate the deployment of high bandwidth networks.

Genesys Capital Partners leads round for Ionalytics
Genesys Capital Partners has led a series B round of venture capital financing for Ionalytics, a Canadian company that develops ion-filtering instruments for drug discovery in the pharmaceutical and proteomics industries. The company secured $4.5m in this round, the proceeds of which will be used to complete the commercialisation phase of their development and to develop collaborative alliances.

Sierra Ventures leads investment in AuthenTec
Sierra Ventures has led a $12.1m round of equity financing in AuthenTec, a Melbourne, Florida-based company that develops biometric fingerprint sensors. The capital brings the company's total funds raised to $50m since it was founded in 1998. Other investors in this round included Harris Venture First, Knickerbocker, Advantage Capital Partners and Stonehenge Capital. AuthenTec will use the funding to support new product development and to continue to expand its customer base.

Nokia Venture Partners invests in EZChip Technologies
Nokia Venture Partners, the venture capital arm of the mobile telecommunications company, has invested $4.2m in the first tranche of a series C round of equity financing for EZChip Technologies, a Californian fabless semiconductor company that provides high-speed network processors. Several other investors participated in the round in December 2002, including Goldman Sachs Private Equity, JK&B Capital, Star Ventures and Tamar Investments.

Austin Ventures backs InfiniSwitch in its merger with Lane15
Austin Ventures has backed the merger of InfiniSwitch, a manufacturer of InfiniBand switch products, with Lane15, a provider of management software for fabric computing. The company will trade under the name InfiniSwitch and will be located in Westborough, Massachusetts and Austin, Texas. Other investors that also participated in this round were Bessemer Ventures, Columbia Capital, Convergent Ventures, Flagship Ventures, Index Ventures, Lightspeed Venture Partners, Moore Capital Management and TL Ventures.

Summer Street Capital leads round for UStec
Summer Street Capital Partners has invested $5.2m in a $5.5m fourth round of financing for UStec, a Victor, New York-based provider of wiring systems and components for home networking. Summer Street, a new investor in Ustec, led the round, which included existing investors Rand Capital and Onondaga Venture Capital Fund. The proceeds from the round will be used for working capital, marketing, research, and development. To date, the company has raised $10m, according to VentureWire.

Healthcare & Life Sciences

Investments:

JP Morgan leads round for Corus
JP Morgan has led a round of funding for Corus Pharma, a Seattle-based biotech and pharmaceutical development company that focuses on respiratory and infectious diseases. Novo A/S and RBC Capital Partners co-led the $40m investment, which also included MDS Capital, Integra Ventures, Burrill & Company, OrbiMed Advisors, Cascade Investment, Washington Research Foundation and Anthem Venture Partners. The funds will be used to complete the clinical trials of its inhaled drugs for patients with cystic fibrosis and asthma.

TL Ventures leads round in Sopherion
TL Ventures is one of a number of investors in a recent round of venture capital financing for biotechnology company, Sopherion Therapeutics. Sopherion, which is based in New Haven, Connecticut, raised $26m in this round, the proceeds of which will be used to enhance the company's product pipeline and drug discovery initiatives. HealthCap, ProQuest Investments, Johnson & Johnson Development, InterSouth Partners, Seaflower Ventures, Connecticut Innovations and GE Life Science & Technology Finance also participated.

Oracle Partners invests in Pharmaca
Oracle Partners has invested in the latest round of funding for Pharmaca Integrative Pharmacy, a Boulder, Colorado-based operator of pharmacies that combine traditional prescription-based medicines with natural, complementary products. The $5m that the company has raised will be used to develop the company's approach to pharmacy retail and will accelerate the acquisition of independent pharmacies throughout the US.

Heritage Partners backs portfolio acquisition
Heritage Partners has backed the buy-out of LifeMark Health by one of its portfolio companies, RivienHealth. The terms of the deal were not disclosed. LifeMark Health provides outpatient physical therapy and rehabilitation services in Canada. It currently operates 45 clinics throughout the country.

Services

Investments:

Frontenac Company commits to HR outsourcing
Frontenac Company, the Chicago-based private equity firm, has committed capital to Gevity HR, a NASDAQ-listed company that provides outsourced HR solutions. The company has secured $30m in this PIPE round, which it will use to strengthen its balance sheet and to allow it to pursue its growth strategy, including possible acquisitions.

Quatris Fund leads round for market research company
Quatris Fund has led a round of institutional financing for Iconoculture, a Minneapolis-based provider of market research services. The company has raised $1.25m in this first round of funding, with participation from Portage Capital, Startec Investments and several individual investors. Iconoculture intends to use the new capital for expansion capital and to increase its sales and marketing efforts.

Media

Investment:

JP Morgan Partners and Veronis acquire Atwood Publishing
JP Morgan Partners and Veronis Suhler Stevenson have acquired Kansas-based Atwood Publishing, a publisher for trade industry associations. The acquisition was made through Ascend Media and will serve as a business platform company. Ascend Media was formed and incorporated by JP Morgan and Veronis has invested in Ascend Media as part of the sales transaction. The terms of the deal were undisclosed.

JP Morgan Partners and Veronis acquire GEM Communications
In a similar transaction to Atwood Publishing, JP Morgan Partners and Veronis Suhler Stevenson have acquired GEM Communications, a Las Vegas-based publisher of magazines and conference and events organiser for the gaming industry. GEM Communications will also serve as a business platform company.

Software

Investments:

Spaulding Ventures invests in Microlanguage
Spaulding Ventures has invested in a series A round of equity funding for Microlanguage. The company is located in Amherst, New York, where it provides language processing solutions. Spaulding Ventures led the $1m round and was joined by a group of angel investors. The money raised will be used as working capital and for funding investments in infrastructure, including capital equipment and personnel.

Investcorp supports BayPackets through a round of financing
Investcorp has supported the continued development of BayPackets by committing capital to a $21.7m series C round of venture capital funding. The company, which is located in Fremont, California, provides voice and data solutions for wireless and cable operators. Investcorp co-led the round with TL Ventures and other participants included Intel Capital, Blueprint Ventures, Diamondhead Ventures, INC3 Ventuires, Lucent Venture Partners and TeleSoft Partners. BayPackets will use the funds to support its sales and marketing drives and to bolster its customer support infrastructure.

Gray Ventures leads round for LiveWire Logic
Gray Ventures and Research Triangle Ventures has led an institutional round of financing for LiveWire Logic, a Morrisville, North Carolina-based provider of web-based customer self-service software. The company secured $1.5m in this third round of funding. Gray Ventures and Research Triangle Ventures were joined by other existing investors The Atlantis Group, Tri-State Investment Group, and truePilot. LiveWire has raised $7m to date, according to VentureWire.

JP Morgan closes round for Axentis
JP Morgan Partners has led a round of financing for Axentis, a US company that provides governance management and compliance management software. The round was closed at $5.4m and will be used for additional marketing and sales activities and to continue the technical expansion of the company's products. Key Principal Partners also participated in this round.

@Ventures in round for Vcommerce
@Ventures has provided capital to a round of venture capital financing for Vcommerce, a Scottsdale, Arizona-based company that provides supply chain execution software solutions. The round totalled $8m and will be used to accelerate the delivery and launch of the company's products. StarVest Ventures led the round and other investors that also participated included Archery Capital and Benchmark Capital.

Celtic House provides funding for Camilion
Celtic House has provided capital for the latest round of equity financing for Camilion Solutions, a Toronto, Canada-based company that supplies enterprise product management solutions for the financial services industry. The company has secured $5.4m in this series B round, which will be used to develop Camilion's range of products.

Sofinnova Ventures commits to Network Physics
Sofinnova Ventures, the lead investor in this financing, has joined with several other private equity houses in raising capital for Network Physics, a Mountain View, California-based company that provides physics-based network management products. The new round, which closed at $6m, brings total funding to $30m. The round included all existing investors from previous rounds, such as VantagePoint Venture Partners, Intel Capital, Lucent Venture Partners and AIG SunAmerica.

Newbury Ventures leads round for Rev D
Newbury Ventures has led an investment in Rev D Networks. The $22m series A round will be used to develop the company's telecoms software product range, as well as for sales and marketing. Situated in Ottawa, Canada, the company was also backed in this round by co-lead investor VenGrowth Capital Partners, BDC Venture Capital and BEST Discoveries Fund.

Intel Capital invests in Groove Networks
Intel Capital is among the most recent investors in Groove Networks, a Beverly, Massachusetts-based company that provides decentralised desktop collaboration software. Intel capital was joined by Accel Partners in this $38m round, as well as by Microsoft Corp and private investors. The company plans to use the additional funds to support ongoing operations.

Dali Hook is lead investor for Cohesiant
Dali Hook Capital Partners has led a series B round of venture capital financing for Cohesiant Corporation, a San Mateo, California-based company that provides analytical solutions to IT professionals. The company has secured $9.2m in this round that it intends to use for product development. Other investors involved included Benchmark Capital, Pequot Capital, Bain Capital and StarVest Partners.

Meritage helps fund Masergy
Meritage Private Equity Funds has invested alongside Centennial Ventures in a second round of institutional financing for Masergy Communications. The company, which is located in Dallas, raised $31m in this round, bringing its total funding in two and a half years to $100m. The new capital will be used to increase sales, boost marketing and customer support activities, and to expand its global presence.

Walker Ventures commits to Platform Logic
Walker Ventures has committed capital to a round of venture capital financing for Platform Logic, a Glenwood, Maryland-based company that develops host intrusion prevention software. Platform raised $3m in this round, which it will use to expand development and increase sales and marketing efforts to the government, financial services and healthcare industries. The Maryland Department of Business & Economic Development joined Walker Ventures in this round.

Accel Partners joins investors in round for ItemField
Accel Partners has joined a number of other investors in a round of financing for ItemField, a New York City-based company that provides real-time data transformation software. The company closed the round at $4m and other investors included Gemini Israel Funds and Evergreen Partners. Proceeds from this round will be used to expand the company's technology and market initiatives.

Manufacturing

Investment:

Ariadne Capital joins in round for NanoMuscle
Ariadne Capital has joined in a round of financing for NanoMuscle, a company that manufactures nanotechnology-based motors to replace electromagnetic motors in the small motor market, particularly for the toy and automotive industries. The company, headquartered in California, has secured $10m from a group of investors that also included AutoVision, the venture capital arm of Volkswagen and lead investor in the round, and Crossbow Ventures.

Networking

Investments:

New Enterprise Associates finances new optical components company
US private equity firm, New Enterprise Associates, has backed a series A round of financing for Covega, a new company formed by the merger of optical components companies Codeon and Quantum Photnics. The company, which secured $17m in the round, will provide optical components, modules and subsystems to the telecommunications, data communications, military and cable television industries. OCG Ventures, Boulder Ventures, Core Capital Partners, EDB Ventures, Intersouth Partners, Kinetic Ventures and Siemens Venture Capital also participated.

Norwest Venture Partners leads funding of Virtela
Norwest Venture Partners has led the series C funding of Virtela Communications, a Denver, Colorado-based provider of managed private network services. The company received $11m from a group of investors that included New Enterprise Associates, Palomar Ventures, North Coast Technology Investors and Newton Technology Partners. The latest capital brings Virtela's total venture commitments to date to $86m.

Materials & Construction

Investment:

Graham Partners acquires housing products manufacturer
Graham Partners, a Wayne, Pennsylvania-based private equity firm, has acquired housing products manufacturer HB&G Building Products. The company, headquartered in Troy, Alabama, manufactures millwork, primarily interior and exterior columns, porch posts and railings, and interior mouldings. The terms of the deal were not disclosed, according to PrivateEquityCentral.

Carousel Capital leads MBO of Visador
Carousel Capital has backed a management buy-out of Visador Holding Corporation, a Marion, Virginia-based manufacturer of hardwood stair parts and a producer of wood and synthetic columns. Carousel has joined with the company's management in the acquisition, the terms of which were not disclosed. Carousel will hold non-executive board seats at the company.

Financial Services

Investments:

Hellman & Friedman invests in Arch Capital
Hellman & Friedman, a San Francisco-based private equity firm, has made an investment in Arch Capital Group and now has approximately a 20 per cent stake in the company. Arch Capital is an insurance and reinsurance company located in Bermuda. The company has over $1.4bn in equity capital.

Securitas Capital acquires parts of Kemper Insurance
Securitas Capital has acquired parts of Kemper Insurance Co, the US-based financial services company. The Cypress Group and Gilbert Global Private Equity joined Securitas in the acquisition. The acquired businesses, which generated $1bn in gross premiums in 2002, include Kemper's middle-market offerings, its marine and small business accounts, architect and engineer professional liability, its fidelity and ERISA bond operations and Ohio-based subsidiary GreatLand. The terms of the deal were not disclosed.

Putnam Lovell backs Berkeley's MBO
Putnam Lovell Private Equity has backed the management buy-out of Berkeley Capital Management from insurance provider, London Pacific Group. Berkeley, which is located in San Francisco, focuses on dividend equity, growth equity and fixed income products. Terms of the deal were not disclosed, according to PrivateEquityCentral.

Wireless

Investments:

Prism supports wireless merger
Prism Venture Partners has supported the merger of InfoClarus and iConverse by committing $8.5m to InfoClarus. InfoClarus, a Massachusetts-based provider of enterprise wireless solutions, has merged with iConverse, a provider of a mobile application platform, and will now offer a more comprehensive service to its client base.

North Bridge in round for Cognio
North Bridge Venture Partners has invested in a $12.5m round of equity financing for Cognio, a Natick, Massachusetts-based company that provides cognitive radio solutions. The funding, which was also provided by ABS Ventures, will be used to bring its technology to market.

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.