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Latest Deals: 12 March 2003 - 18 March 2003

The AltAssets weekly round up of deals done across the world. This week there were 146 active investors in 56 deals and one exit across 12 sectors, compared to 145 active investors in 54 deals and three exits the previous week…

Active investors this week

Europe & Israel

Healthcare & Life Sciences

Investments:

Invesco leads round for Cellzome
Invesco Private Capital has led a series C round of equity financing for Cellzome, a Heidelberg, Germany-based drug discovery company. The round totalled E30m and will be used to fund the company's research and development efforts. Other investors that participated in the round included Biofrontier Partners, SG Asset Management, Yamanouchi Venture Capital, Advent International, Atlas Venture, Index Ventures, Heidelberg Innovation, Schroder Ventures Life Sciences and Sofinnova Partners.

PolyTechnos co-leads round for OncoGenome
German venture capital firm, PolyTechnos Ventures, has co-led a E14m first round of equity financing for OncoGenome Sciences, a Belgian company that concentrates on clinical diagnostic testing services and kits for the healthcare industry. PolyTechnos was joined by Life Sciences Partners of the Netherlands and Belgian venture capital firms Meusinvest, Technowal and SIBL. The funding will enable OncoGenome to accelerate its product development and boost its sales and marketing drives.

Duet Capital invests in Euroclinics
Duet Capital invests in a second round of venture financing for Euroclinics, a healthcare services provider based in the UK. The company focuses on the assessment and prevention of cardiovascular disease. The financing totalled £300,000 and was provided solely by Duet Capital, the venture capital arm of Duet Group.

Media

Investment:

Apax, Goldman Sachs and Providence complete cable TV acquisition
Apax Partners, Goldman Sachs Capital Partners and Providence Equity Partners have completed the E1.725bn acquisition of Deutsche Telekom's German cable television networks. Proceeds from the acquisition will help to reduce Deutsche Telekom's current debt pile. The firms will acquire networks in six German states, including Bavaria and Berlin, and will serve 10.2m subscribers

Sport & Leisure

Investment:

US-based Cerberus acquires Fila Holding for $351m
Distressed investment firm Cerberus Capital Management is to acquire the entire 91 per cent stake presently held by Holding di Partecipazioni Industriali SpA in Fila Holding, an Italian sportswear group, in a transaction valued at $351m. Cerberus, through its affiliate Sport Brands International LLC, will also assume responsibility for all of Fila's debt - this consolidated debt was E295m as at 31 December 2002. The operating businesses that will now be acquired by Cerberus include Fila Nederland, Fila Sport, Ciesse Piumini and Fila USA.

Manufacturing

Investments:

Investcorp acquires Willtek Communications
Investcorp has acquired a majority interest in Willtek Communications, a German company that manufactures test equipment for the wireless communications industry. The firm also intends to provide Willtek with additional capital to expand its operations into new geographic markets and to support new product launches. The terms of the transaction remain undisclosed.

Candover backs MBI of Wellstream from Halliburton
European buy-out specialist, Candover, has backed the MBI of UK-based Wellstream for E123m from its US parent company, Halliburton. Wellstream manufactures flexible pipe applications for the offshore deepwater oil and gas sector. Its products are designed to facilitate the transportation of oil and gas from subsea wells. The incoming management team, led by Gordon Chapman, a former chief executive officer of Wellstream, will take an equity stake in the business.

JP Morgan acquires UK-based plastics manufacturer
JP Morgan Partners has acquired M&H Plastics, a UK-based manufacturer of plastic bottles, caps and flexible tubes for the personal care market. The terms of the deal were not disclosed although the existing management team will remain in place. The company's sales are predominantly in the UK, even though it does export to over 30 countries worldwide.

North America

Technology

Investments:

3i commits to SCP
3i has committed capital to a round of venture financing for SCP Global Technologies, a Boise, Idaho-based developer of semiconductor capital equipment. The company has secured $50m in this round, which SCP will use to expand its global reach and to support its development of manufacturing technology. VantagePoint Venture Partners also participated.

Birchmere Ventures funds Lightningcast
Birchmere Ventures has invested in a round of equity financing for Lightningcast, an Alexandria, Virginia-based company that provides of advertsisement insertion technology. The total funds raised for the round were not disclosed. Other investors included Nokia Venture Partners and Redleaf Group, according to Venture Reporter.

Zenerji invests in Surety
Zenerji, a US-based investment firm, has committed $2m in funding to Surety, a company that delivers a tamper-proof data integrity technology. The new capital will be used to finance the company's sales and marketing drive. At the same time, Surety announced that Tom Klaff, a software industry expert with over 15 years' experience, joined the firm as chief executive officer.

TeleSoft Partners among group of investors in Matrix
TeleSoft Partners is among a group of investors that have committed capital to a round of financing for Matrix Semiconductor, only a few weeks after it secured $15m in strategic capital from Nintendo. The company, a Santa Clara, California-based company that makes 3D storage chips, has closed on $52m for its series E funding. The group consisted of several new investors including Benchmark Capital, Integral Capital Partners, and Seagate Technology. Prior investors Skymoon Ventures and Western Technology Investment also reinvested in the company.

Agilent Ventures adds funds to SiRiFIC's third round
Agilent Ventures, the venture arm of technology firm Agilent Technologies, has invested $2m in a third round for SiRiFIC Wireless, a developer of integrated circuits for wireless products.  The funding closed in November with $11.5m, but has now raised more than $13.5m. New investor BDC Venture Capital led the initial investment, which included participation from other new investor Tech Capital Partners and existing investors Celtic House Venture Partners, Solowave Investments, Waterloo Ventures, and Working Ventures. The new capital will be used for product development and sales and marketing.

The Sprout Group invests in LeftHand
The Sprout Group has joined with several other investors in a round of financing for LeftHand Networks, a Boulder, Colorado-based provider of data storage equipment. LeftHand closed its series B round of funding with $20m. The Sprout Group, a new investor in the company, led the round, and was joined by all of the company's previous investors, including Boulder Ventures, Garage Technology Ventures, Ironside Ventures, New World Ventures, Portage Venture Partners, Sequel Venture Partners, Vista Ventures, and Wasatch Venture Fund. The company will use the new capital to expand operations and sales and marketing.

RRE Ventures co-invests in SavaJe
RRE Ventures has invested alongside Orange Ventures, Vodafone Ventures, New Venture Partners and Ridgewood Capital in a series B round of venture financing for SavaJe Technologies. The company, which is headquartered in Chelmsford, Massachusetts, raised $17.5m in this round, bringing its total funds raised to $29.5m. SavaJe expects to use the funding to build on its current deployments of the company's wireless handsets in Europe, Asia and the US.

GKM Ventures commits to TransDimension
GKM Ventures has committed capital to TransDimension, an Irvine, California-based company that provides USB connectivity solutions for embedded applications. The company closed the series C round on $6m. New investor GKM Ventures led the deal, and was joined by another new investor in the form of iSherpa Capital. Existing investors Shelter Capital Partners and Rolling Oaks Capital and individuals also participated. TransDimension will use the proceeds of the round for marketing and further product development.

CIBC Capital in funding round for Clean Air Partners
CIBC Capital Partners has re-invested in Clean Air Partners, an Atlanta, Georgia-based provider of alternative fuel systems to reduce engine emissions. The company closed its second round of funding with $8.6m in a round that included EnerTech Capital, Exelon Capital Partners, Nth Power Technologies, RBC Capital Partners and strategic investor Emerson Electric. Clean Air will use the funds for product and market expansion for low emission vehicles, electric distributed generation, and oil and gas application products. The company has now raised $34.8m in venture capital financing.

Working Opportunity Fund leads investment in fSona
Working Opportunity Fund has led a third round of venture financing for fSona Communications, a manufacturer of free space optical wireless communications equipment. The Canadian company raised $6.4m in this round, which will be used for further product development. Existing investors The Photonics Fund, High Street Partners, Signal Lake Ventures, Equitek Capital, Network Capital, GrowthWorks and individual investors also participated.

ComVentures leads round for Exavio
ComVentures has led a first close of a series A round of venture capital financing for Exavio, a San Jose, California-based developer of a system for the delivery of digital broadcast video. The company raised $7m from ComVentures and Crystal Internet Ventures. The proceeds from the round will be used for product development and hiring staff.

Ben Franklin invests in three technology companies
Ben Franklin Investments has committed capital to three Pennsylvania-based companies:

GateChange Technologies received $150,000 to develop is simulator of a semiconductor device for client demonstrations. The simulator is used to demonstrate the company's flagship product to potential clients.

Intelligent Energy Corporation secured $74,700 from the firm. The Carbon County-based company will use the funds to incorporate final design enhancements to its drive control device to improve the efficiency of motors.

The firm also committed $60,000 to PaperlessPractice. The company is located in Lackawanna County and focuses on supporting commercialisation efforts and design enhancements for products that increase sales revenue for optical practices. Its technology allows patients to model eyeglass frames and contact lenses without having to try them on.

Chemicals

Investment:

Ben Franklin invests in MedHesives
Ben Franklin Investments has committed $150,000 to MedHesives, a company located in Easton, Pennsylvania that develops resin-based platform technology. The compounds are suited for use as adhesives, sealants, and fillers in harsh environments such as those found in industrial, marine and military applications.

Healthcare & Life Sciences

Investments:

New Enterprise Associates backs Peptimmune
New Enterprise Associates has backed a round of financing for Peptimmune, a Cambridge, Massachusetts-based developer of targeted immunotherapeutics. The company raised $41.2m in series B financing from New Enterprise Associates, MPM Capital, Boston Medical Investors, Hunt Ventures, Prism Venture Partners, and Vanguard Ventures. Peptimmune will use the funding for continued research and development and for hiring staff, according to VentureWire.

Forward Ventures invests in Hypnion
Forward Ventures has co-led a round of financing with MPM Capital for Hypnion, a drug discovery company. The company is situated in Worcester, Massachusetts and focuses on neurobiology and pharmaceuticals. The series B round totalled $47.5m, the proceeds of which will be used for research and development. Other new investors included Advanced Technology Ventures, SR One, JAFCO, and Coastview Capital. Returning investors from the first round included Oxford Bioscience Partners, Flagship Ventures, and GIMV.

Sutter Hill Ventures invests in Corcept
Sutter Hill Ventures has invested in a round of financing for Corcept Therapeutics, a pharmaceutical company engaged in the development of drugs for the treatment of psychiatric and neurological diseases. Corcept, which is headquartered in Menlo Park, California raised $11.8m from Maverick Capital, an existing shareholder and the lead investor in this round, and Alta Partners, another prior investor. To date, Corcept has raised $40m.

Allied Capital invests in HealthMarket
Allied Capital has committed to a round of venture capital financing for HealthMarket, a Connecticut-based company that offers health plans for small and medium-sized businesses. This third round of funding totalled $12.5m and will be used for sales and marketing and product development.

Services

Investments:

Frontanac in recap round for Prenova
Frontenac Company, a US-based private equity fund, has committed capital to a  recapitalised series A round of financing for Prenova. Previously called Service Resources, Prenova is based in Atlanta, Georgia and provides energy management services. The company has received $15.5m in this round. Frontenac led the round, which also included existing investor Austin Ventures and new investor River Cities Capital Funds.

Mobius and Arrowpath co-lead NetSec's third round
Mobius Venture Capital and Arrowpath Venture Capital have co-led a third round of institutional financing for Herndon, Virginia-based Netsec, a provider of managed security services. The company raised $10m in this round of funding, the proceeds of which will be used for expansion into the government sector as well as international markets. NetSec has now raised a total of $24.5m in venture capital so far.

Software

Investments:

Selby Ventures leads round for LiveCapital
Selby Ventures has led a round of financing for LiveCapital, a San Mateo, California-based provider of enterprise credit management solutions. The round was oversubscribed at $7.4m, the proceeds of which will allow the company to increase its sales efforts and strengthen its position in the marketplace. Cardinal Venture Capital, Irwin Ventures, Kingston Creek Ventures, Kleiner Perkins Caufield Byers, PacRim Venture Partners and Red Rock Ventures also participated in this round.

Highland and North Bridge in round for Tatara
Highland Capital Partners and North Bridge Venture Partners have both invested in a $9m round of institutional funding for Tatara Systems, a developer of service delivery platforms for wireless local area network service providers. The company has also announced that Steve Nicolle, a 18-year communications industry veteran has joined as president and chief executive officer.

GIC Special Investments leads funding for Arbortext
GIC Special Investments, a Singaporean investment firm, has joined Norwest Venture Partners, Invesco Private Capital and North Coast Technology Investors in a $8.75m round of equity financing for Arbortext. The Ann Arbor, Michigan-based company provides XML-based software for content creation, editing and multichannel publishing. The proceeds from this round will be used to accelerate the company's worldwide sales and marketing efforts.

Matrix finances Consera Software
Matrix Partners has led a round of financing for Consera Software, a Bellevue, Washington-based developer of server resource management software. The company raised $8.5m in its series A round from Matrix, Ignition Partners and new investor Intel Capital. The proceeds from the round will be for product development and for sales and marketing.

ITU Ventures leads round for Hier Design
ITU Ventures has led a round of equity financing for Hier Design, a software developer that focuses on ‘field programmable gate array' designs. The company is situated in Santa Clara, California, and will use the new funds for general working capital. The round totalled $6.2m and also included Lanza Tech Ventures, private investors, and strategic investors Xilinx and Cadence Design Systems.

Castile Ventures funds Optiant's second round
Castile Ventures has committed capital to a round of venture financing for Optiant, a Boston-based company that develops supply chain design solutions. Optiant secured $10.5m in this second round, which it will use to increase its product development. Battery Ventures, which invested in Optiant's first round, also participated alongside Castile.

Council Ventures invests in Lancope
Council Ventures has invested in Lancope, an Atlanta, Georgia-based company that develops enterprise security applications. The $5m that Lancope raised in this series B financing brings total funds raised by the company to $12m. Other investors that joined Council Ventures included HIG Ventures and GMG Capital Partners. Proceeds from the round will finance new product development initiatives, enhance the current product line and expand sales and marketing efforts.

Gefinor returns for Idetic's series B financing
Gefinor Ventures, an existing investor in Idetic, has returned for a second round of funding. A provider of wireless network management software, Idetic closed with  $1m in this first tranche of its series B round. The tranche will remain open for another couple of months during which time the company hopes to raise an additional $2m. Sorrento Ventures also participated in this round.

Mission Ventures leads round for Bullrun
Mission Ventures has led a round of venture capital financing for Bullrun Financial, a Princeton, New Jersey-based provider of portfolio management software for investors. The company raised $3m in this series B round of funding. Mission Ventures, an existing investor in the company, co-led with private individuals.
The company intends to use the new funding to accelerate growth and to expand its product range.

Core Capital funds Solstice Software
US private equity firm Core Capital Partners has led a series B round of equity financing for Solstice Software. The company, which is located in Wilmington, Delaware, provides automated testing and simulation software for systems integration. The round closed on $3.8m, which it intends to use for sales and marketing purposes. Anthem Venture Partners also participated.

Baker Capital leads round for Action Engine
Baker Capital has led a round of venture capital financing for Action Engine, a provider of a software platform for the development of smart device applications.  Action Engine raised $15.5m in its series C round, which it will use for sales and marketing in Asia, Europe, and the US. The company will also use the new funds for additional development of its product range. New investor Baker Capital led the round, followed by other new investors Cascadia Capital and Intel Capital, which invested through its Intel Communications Fund. All existing investors returned for the round, including OVP Venture Partners, Northwest Venture Associates, and Spangler Ventures.

Washington Capital Partners backs Raedel
Washington Capital Partners has backed a round of financing for Raedel Financial Solutions, a Washington, DC-based provider of browser-based analytical software tools. The company raised $500,000 in this first round of institutional funding. Washington Capital Partners was joined by a number of undisclosed individual investors. The company will use the funding for working capital and to expand marketing activities.

Manufacturing

Investment:

Bain Capital acquires Hayward Pool Products
Bain Capital has acquired a swimming pool products manufacturer for approximately $570m. The company, Hayward Pool Products, is located in Elizabeth, New Jersey, and it focuses on the manufacturing and marketing of pumps, filters, heaters, lighting, automatic pool cleaners and control items for swimming pools. Bain acquired the company via a second auction, out-bidding Warburg Pincus, and committing about 40 per cent of the total amount in equity.

Ben Franklin makes three manufacturing investments
Ben Franklin Investments has made three seed investments and one late stage investment in Pennsylvania-based manufacturing projects:

Advanced Building Products manufactures a device for lifting wood-framed walls from a horizontal position to its final vertical position, received $100,000. The product reduces injury and is more time efficient.

The firm committed $40,000 to MegaPhase, a Monroe County-based company that designs and manufactures a cable shielding system, which, when flexed, will continue to operate at high frequencies and maintains its mechanical and electrical properties.

Thor Power Corporation raised $100,000 from Ben Franklin to develop its core product. The Bethlehem-based company is developing a new power tool line to improve efficiency and noise.

Ben Franklin also invested a small amount of capital in a late stage process flow improvement company. Demco Automation, which manufactures a modular assembly system received $14,642.

Networking

Investments:

Woodside Fund leads investment in Aristos
Woodside Fund has led a venture capital financing round for Aristos Logic, a Foothill Ranch, California-based company that develops an intelligent network storage processor. The round closed at $20m and included JP Morgan Partners, TPG Ventures and QTV Capital, as well as a new strategic investor, Macnica of Japan. The new capital will go towards sales, marketing and production of the company's flagship product.

Pitango Venture Capital invests in Silverback
Pitango Venture Capital has participated in a third round of venture capital financing for Silverback Systems, a company located in California that develops storage network access processors. The company secured $15m in this round from a group of investors that also included Gemini Israel Funds, Newbury Ventures, JP Morgan Partners and US Trust Private Equity. The company was founded by Israelis but does not maintain a development centre in the country. The latest financing brings total funds raised by Silverback to $33m.

First Analysis leads round for SecurePipe
First Analysis has committed capital to SecurePipe, a Chicago-based company that provides network security services. SecurePipe raised $2m in this round, in which Prism Opportunity Fund also participated. The company will use the funds to expand its delivery channel and business development as well as to expand customer service and its partnership programs. It has now raised a total of $5m in venture financing, according to VentureWire.

Internet

Investment:

Dolphin Equity Partners invests in Gomez
Dolphin Equity Partners has invested in a round of financing for Gomez, a US-based provider of internet application performance measurement solutions, after the company acquired WebPerform, a UK-based company that provides technology that traces and measures online activity. The $5m that was raised will support international expansion and Gomez's product development plans. Harbinger/Aurora Funds, DB Capital Venture Partners and Doughty Hanson Technology Ventures joined Dolphin in the investment.

Sevin Rosen Funds commits to Westbridge
Sevin Rosen Funds has committed capital to a round of venture capital financing for Westbridge Technology, a Mountain View, California-based company that provides XML web services security products. The company secured $10m in the round, bringing total funding to $15.1m. This second round was led by Sevin Rosen Funds and also included existing investors August Capital and Granite Ventures.

Sevin Rosen Funds commits to oversubscribed round for LiveVault
Sevin Rosen Funds has invested in a $10m series B round of institutional financing for LiveVault, a Marlborough, Massachusetts-based provider of online backup and recovery services for business servers. Sevin Rosen Funds, a new investor in the company, led the round with participation from previous investors Matrix Partners, Atlas Venture, Adams Street Partners, and Iron Mountain. The company will use the funds for development and marketing, as well as general operations. The company has raised a total of $20m so far.

Soros Private Equity finances Bluefly
Soros Private Equity has invested $2m into online retailer Bluefly, a New York-based online clothes retailer, in a PIPE deal. The transaction helped the company to pay $3m in debt and allowed an agreement for an additional $1m in capital commitments from Soros. The private equity firm now owns 89.7 per cent of Bluefly.

Energy & Utilities

Investment:

GTCR invests in power generation company
GTCR Golder Rauner, a Chicago-based private equity firm, has invested an undisclosed amount in Invenergy, a US-based company that acquires and develops power generation facilities. The agreement makes GTCR the preferred equity provider for the acquisition of power facilities, according to PrivateEquityCentral.

Latin America, Australasia & Africa

Software

Investment:

Darby invests in Costa Rican software company
Darby Technology Ventures Group, run by Darby Overseas Investments, has committed capital to a round of financing for Exactus, a Costa Rican company that develops enterprise resource planning and business administration software packages. Intel Capital also invested in the company in this round.

Financial Services

Investment:

General Atlantic Partners finances Computershare
General Atlantic Partners has increased its stake in Computershare, an Australian share registry and financial market services company. The US-based private equity firm has doubled its stake in the company by acquiring 18.7 million shares at a cost of US$22.8m. The company previously acquired five per cent of the company and is now the second largest shareholder behind Chris Morris, Computershare's chief executive.

Exit:

CDC exits Ghanaian bank
CDC Capital Partners has realised its investment in SSB Bank in Ghana. CDC acquired a ten per cent stake in SSB in 1999 and has realised an IRR of 17 per cent. SSB was established in 1975 and commenced business as a commercial bank in 1977. It has 38 branches and 650 employees. It is the country's fourth largest bank and serves nearly 220,000 individual customers and 26,000 business customers.

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.