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Latest Deals: 16-22 April 2003

The AltAssets weekly round up of deals done across the world. This week there were 133 active investors in 47 deals and two exits across 13 sectors, compared to 122 active investors in 51 deals and two exits the previous week…

Active investors this week

Europe & Israel

Internet

Investment:

T-Online Venture Fund invests in gamigo
T-Online Venture Fund has invested in a E2m round of financing for gamigo, a Rheine, Germany-based company that provides an online gaming portal. T-Online Venture Fund will hold a minority stake in the company. Axel Springer Venture and bmp also participated in this round. The funds will be used for product development.

Healthcare & Life Sciences

Investments:

Hotbed invests in Armstrong Healthcare
Hotbed, a UK-based private equity network, has committed capital to a round of equity financing for Armstrong Healthcare, a Milton Keynes, UK-based company that develops intelligent surgical robots for the healthcare industry. The company has raised an undisclosed amount of capital from Hotbed. The funds will be used for product development and market entry.

HBM Bioventures leads round for Sloning
HBM Bioventures has led a E4.3m series B round of venture capital funding for Sloning BioTechnology, a Puchheim, Germany-based developer of gene-based tools for biotech and pharmacological research and development. HBM Bioventures, a new shareholder, led the round with a E2.5m investment. Deutsche Effecten und Wechsel-Beteiligungsgesellschaft, also a new investor in the company, provided E1.5m. The remainder of the series B funds were provided by 3i, an existing shareholder. The new funds will be devoted to further development of the company's flagship Sloning gene synthesis technology.

Technology

Investment:

Crédit Lyonnais Private Equity invests in Nemoptic
Crédit Lyonnais Private Equity has invested in a third round of funding for Nemoptic, a Paris, France-based designer and developer of liquid crystal displays. The company has raised E12m in this round from a group of investors that also included CDC Ixis, Auriga, SG Asset Management, Ventech, Alven Capital and Financiere de Brienne. The proceeds will be used to develop its current technology and to introduce a new colour display into the marketplace.

Automotive & Transport

Investment:

BA Capital Partners acquires Enricau
BA Capital Partners Europe has acquired Enricau, a France-based automotive precision mechanics and bar-turning company. The terms of the transaction were not disclosed. BA capital Partners will work closely with the company's management to develop the business throughout Europe.

Manufacturing

Investments:

AXA Private Equity backs Tokheim's MBO
AXA Private Equity has backed the management buy-out of Tokheim, a France-based company that manufactures and maintains systems and dispensers for petrol stations throughout the world. AXA will own approximately 94 per cent of Tokheim, with management making up the difference. The financial terms of the transaction were not disclosed.

Equinox acquires Church's from Prada
Equinox, a private equity fund, has acquired shoe brand Church's from Prada, the Italian fashion house. The company has sold a 45 per cent stake in Church's four years after acquiring the company. The stake was sold to Equinox for an undisclosed sum. Prada acquired Church's, which at the time owned Jones the Bootmaker, for £106m. Jones was sold two years ago to a UK consortium in a £17m deal.

Barclays Private Equity acquires French plastics packaging manufacturer
UK-based Barclays Private Equity has completed an investment in SP Metal, a French plastic packaging manufacturer. The UK mid-market buy-out house has bought a 25 per cent to 30 per cent equity stake in the household plastic goods manufacturer. The stake will be used as a cash injection to build the business organically and to make bolt on acquisitions. The existing management has retained the remainder of the company and did not wish the price of the deal to be disclosed.

Secondary buy-out/exit:

EQT sells Stenqvist to Triton
EQT Partners has realised its investment in Stenqvist, a Swedish manufacturer of packaging products for the retail sector, via a secondary buy-out. EQT has sold its stake in the company to Triton, a Sweden-based private equity firm, having acquired the company in 1999 for E15m.

Exits

Software

Exit:

Viventures realises investment in MobiPocket
Viventures has exited its investment in MobiPocket, a Paris, France-based company that provides software that enables text to be distributed to a wide range of platforms, The firm has sold half of its stake in MobiPocket to Franklin Electronic Publishers, a Burlington, New Jersey-based distributor of handheld electronic books, and the other half to MobiPocket founders. Founded in March 2000, MobiPocket enables electronic text to be sent to Franklin Electronic Publishers's proprietary platforms, as well as those of Palm, Pocket PC, and Symbian.

North America

Technology

Investments:

Rock Maple Ventures leads round for ChipWrights
Rock Maple Ventures has led  a series C round of venture capital financing for ChipWrights, a Newton, Massachusetts-based designer of digital signal processors for imaging processing. The company secured $18m in this round, which it will to increase its marketing and sales activities. SpaveVest, Axxon Capital, Axiom Venture Partners, Egan Managed Capital, Shiprock Capital, and Adams Harkness & Hill Technology Ventures were new investors in the company. Existing investors included BancBoston Ventures, Band of Angels, New England Partners Capital and Techfarm.

China Development invests in Pixim
China Development Industrial Bank has invested in a $22m series D round of venture capital financing for Pixim, a fabless semiconductor designer that produces digital image sensors for security cameras. The Californian company will use the funding or development, production and customer support for its new product. Existing investor China Development Industrial Bank led the round, which also included new investor Newbury Ventures and existing investors Mohr Davidow Ventures, Mayfield, Synopsys, and the Emerging Alliance Fund managed by VentureTech Alliance.

Columbia Capital commits to Luna
Columbia Capital has led a round of institutional financing for Luna Technologies. The company is headquartered in Blacksburg, Virginia, where it provides fibre optic component test equipment. The series B round totalled $3.5m and included participation from other existing investors Envest Ventures, SoundView Technology Ventures, Novak Biddle Venture Partners, Southwest One, Court Square Ventures and Virginia Tech. The proceeds from the round will be used for sales and marketing.

ITU Ventures leads Quellan's second round
ITU Ventures has led the second round of institutional equity financing for Quellan, an Atlanta, Georgia-based company that provides integrated circuits for high-speed communications equipment. The round totalled $3m, which will be used for developing the firm's family of signal processing devices for interconnecting semiconductor chips and systems in the server, networking and storage markets. Existing investors Cordova Ventures, Yamacraw Seed Fund, and new strategic investor National Semiconductor also participated.

Docor leads investment in CogniTens
Docor has led a third round of venture capital financing for CogniTens, an Israeli provider of 3D non-contact measurement systems for industrial applications in the automotive and aerospace industries. The company raised $4m in the first closing of this third round of financing. Docor was a new investor in CogniTens, while several existing investors also participated, including Pitango Venture Capital, Infinity, Clal Venture Capital, Yozma, and The Challenge Fund. The proceeds from the round will be used for sales and marketing.

Wireless

Investments:

Aspen Ventures commits to Helicomm
Aspen Ventures has committed capital to Helicomm, a provider of wireless data networking hardware and software for embedded systems and sensory networks. The company is located in Carlsbad, California, and has raised $2.5m in this ongoing Series B round. Existing investor Aspen Ventures and new investor GCP provided the funds, which will be used to support the company's initial product roll-out.

Motorola leads investment in Dilithium
Motorola Ventures, the venture capital arm of the mobile telephone giant, has committed capital to a roundof equity financing for Dilithium Networks, a provider of wireless multimedia applications that include voice and video transcoding gateways. Located in Larkspur, California, the company secured $10m in this series B round. New investors Motorola Ventures and Jafco Asia co-led the round. They were followed by all of the existing investors, including CM Capital Investments, Deutsche Bank Capital Partners, Entrepreneur America and Ericsson Technology Fund. The proceeds of the round will be used for international sales, support and further product development.

Genesis Campus invests in InnerWireless
Genesis Campus has committed capital to InnerWireless, a provider of in-building wireless systems and services. The Richardson, Texas-based company raised $1m in new financing and $2m in debt. New investor Genesis Campus provided the financing and Comerica, through its Technology and Life Sciences Division, provided the debt. The funds will be used for sales and additional deployments of its InnerMobile system. Founded in 1998, InnerWireless has raised $26m to date.

Blumenstein/Thorne co-leads recap round for AirCell
Blumenstein/Thorne Information Partners is one of three co-leaders in a round of equity financing for AirCell, a Louisville, Colorado-based company that provides cellular telecommunication services on airplanes. The company has raised $9m in this recapitalised Series B-1 round from Blumenstein/Thorne, Sycamore Ventures and Northwood Ventures co-led the round, while existing investor GE Capital also participated. The proceeds from the round will be used for business expansion into new markets, including commercial aviation and airline security, and for capital expenditures.

Networking

Investments:

Sandler Capital Management adds funds to Jedai
Sandler Capital Management has returned to invest in another round of financing for Jedai Broadband Networks, a Red Bank, New Jersey-based developer of access technology for broadband providers. The company raised $10m in the first tranche of this series B round. Existing investors Intel Capital, Weiss Peck & Greer and Spencer Trask also participated. The proceeds from the round will be used for working capital, according to VentureWire.

Bay Partners invests in AirFlow Networks
Bay Partners has invested in a series A round of equity financing for AirFlow Networks. Situated in Sunnyvale, California, the company provides a convergence enterprise LAN switching system. The round, which also included a number of individual investors, closed the round at $8m. The company raised $6m this month and incorporated the $2m it raised in its seed round into the series A financing. The proceeds of the round will be used for final product development and launch.

Bessemer Venture Partners invests in Mangrove
Bessemer Venture Partners has invested in a round of financing for Mangrove Systems that totals over $20m. The networking company, headquartered in Wallingford, Connecticut, has received the funds from Bessemer, Highland Capital Partners and Columbia Capital, the proceeds of which will be used for product development and for supporting customer activities, which includes beginning field trials. Mangrove Systems focuses on the demand for efficient and effective converged services in the networking arena.

Healthcare & Life Sciences

Investments:

Thomas Cressey leads financing for ESP
Thomas Cressey Equity Partners has led a series B round of equity financing for ESP Pharma, an Edison, New Jersey-based drug maker that focuses on therapeutics for the acute care market. The company raised $20m in this round. Existing investors Domain Associates, Apax Partners and New Enterprise Associates joined Thomas Cressey Equity Partners.

Boston University Community Technology Fund invests in Elixir
Boston University Community Technology Fund has invested in a series B round of equity financing for Elixir Pharmaceuticals, a drug discovery and development company situated in Cambridge, Massachusetts. The company raised an additional $5.5m to the $17m that it raised in January 2003. Individual investor Larry Ellison, chairman and CEO of Oracle, joined Boston University Community Technology Fund in this tranche. Elixir is focused on the development of pharmaceuticals to slow aging, and reduce its associated diseases and disabilities, according to VentureWire.

Alloy leads round for BaRRx
Alloy Ventures has led a series A round of equity financing for BaRRx, a Californian company that develops a novel therapy for the treatment of Barrett's esophagus, a pre-cancerous condition resulting from gastroesophageal reflux disease. The company received $6.8m in this round of financing, a portion of which it will use to bring in clinical staff and a permanent chief executive officer. The majority of the funds will go towards efficacy trials of the product. Delphi Ventures and Charter Ventures also participated, as did strategic investor Stellartech Research.

Essex Woodlands funds St Francis
Essex Woodlands Health Ventures has led a series C round of venture capital financing for St Francis Medical Technologies, a developer of minimally invasive procedures for orthopedic and neurological spinal surgery. The Concorde, California-based company raised $15m in this round of funding, the proceeds of which will be used to complete the FDA approval process and to fund the introduction of the company's first product. Essex Woodlands Health Ventures led the round with an investment of $6.5m, with the remainder being provided by existing investors Versant Ventures and US Venture Partners. St Francis has raised a total of $27m since it was founded in 1997.

Thomas Weisel Capital Partners finances Acusphere
Thomas Weisel Capital Partners has invested in Acusphere, a pharmaceutical company that develops formulations of existing drugs and drug delivery systems using porous microparticle technology. It raised $19m in this ongoing late-stage financing, which is the company's eighth round since the company was founded in 1993. Led by Thomas Weisel Capital Partners, an existing shareholder, the funding also included other previous investors including Audax Group, BancBoston Ventures, BA Ventures, HBM Bioventures, Polaris Venture Partners, and Technology Funding. Proceeds from the round will be devoted largely to an ongoing phase III clinical study of its product.

MDS Capital leads investment in DepoMed
MDS Capital has led a round of equity financing for DepoMed, a publicly-traded developer of oral drug delivery technology. Based in Menlo Park, California, the company completed its $20m PIPE with investments from Biovail Corp, Hambrecht & Quist Capital Management, HBM BioVentures, Easton Hunt Capital Partners, Special Situations Funds and Quogue Capital. Thomas Weisel Capital Partners acted as the private placement agent for this transaction.

Financial Services

Investments:

The Compass Group invests in WorldBusiness
The Compass Group has made an undisclosed investment into WorldBusiness Capital, a lender to small to mid-sized businesses for the purpose of financing international trade and investments. Target borrowers are privately owned businesses based in the US or in emerging markets with a borrowing need of between $100,000 and $10m per transaction. The company, which is based in the US, uses programmes of the Export-Import Bank of the United States, the Overseas Private Investment Corp and other US government agencies, according to Private Equity Week.

US Carlyle and Madison Dearborn buy out Williams Energy Partners for $1.1bn
US-based Madison Dearborn Partners and Carlyle Group's Carlyle/Riverstone Energy and Power Fund II, have jointly acquired a 54.6 per cent stake in publicly traded energy investment subsidiary Williams Energy Partners in a buy-out worth $1.1bn. The transaction will include $512m payment and will also have the effect of removing $570m of the partnership's debt from Williams' consolidated balance sheet.

Software

Investments:

Partech leads round for Spoke Software
Partech International has led a series B round of venture capital financing for Spoke Software, a Palo Alto, California-based provider of enterprise sales software. The company has raised $5m in this round, which it will use for product development and to sign additional customers. Previous investors US Venture Partners and Sierra Ventures also participated. It brings Spoke's total funding to $9.2m.

The Roda Group invests in Touchpoint
The Roda Group has committed capital to Touchpoint, a provider of software and services for direct mail and business communications. The company, which is situated in Emeryville, California, closed the series C round at $3m, the proceeds of which will be used for sales and marketing and to expand its presence in the direct marketing industry. The Roda Group led the round and was joined by Crimson Ventures, as well as individual investor Brian Maxwell, founder of PowerBar.

VantagePoint Ventures finances BakBone Software
VantagePoint Ventures has invested $15m in a series A round of venture capital financing for BakBone Software, a San Diego, California-based company that develops data recovery software. The PIPE transaction will enable VantagePoint to elect two representatives to BakBone's board of directors. Proceeds from the financing will be used for working capital and for general corporate purposes.

Foundation Capital leads round for manageStar
Foundation Capital has led a round of institutional financing for manageStar, a Walnut Creek, California-based provider of corporate services automation software. manageStar raised $7m in this series C round, the proceeds of which will be used for business development and marketing as well as its continued expansion in the corporate services automation market. Charter Venture Capital and Dominion Ventures, both existing investors in the company, also participated in this round.

Castletop Capital invests in Sheer Networks
Castletop Capital has invested in Sheer Networks, a Framingham, Massachusetts-based provider of service management software for carrier broadband networks. The company raised $11m from Castletop, JK&B Capital, Jerusalem Venture Partners and Rein Capital. The proceeds from the round will be used for sales and marketing. To date Sheer Networks has raised more than $42m in venture financing.

Oak Investment Partners funds Talisma
Oak Investment Partners has committed capital to Talisma, a Kirkland, Washington-based developer of customer support management software. The company secured $7.25m from existing investors Oak Investment Partners, SeaPoint Ventures and a private investor. Proceeds from the round will be used to expand its global presence by hiring more developers and funding expanded sales and marketing initiatives.

Arbor invests in Bluespring
Arbor Partners has invested in a round of equity financing for Bluespring Software, a Cincinnati, Ohio-based company that develops a business assurance solution. Bluespring raised $9m in this round, which it will use to develop its product range and enable the company to satisfy customer demand. Arbor Partners was the sole investor in this round.

Sevin Rosen Funds leads investment in NeoScale
Sevin Rosen Funds has led a round of venture capital financing for NeoScale Systems. Located in Milpitas, California, NeoScale provides enterprise storage security appliances and software. The company raised $12m in this second round of funding, which it will use to expand its sales, channel and marketing programs, as well as for technology and product development. Bay Partners and Lightspeed Venture Partners also participated. The company has raised $25.5m to date.

BDC Venture Capital invests in Layer 7
BDC Venture Capital has co-led a seed round of venture capital financing for Layer 7 Technologies, a provider of Web service collaboration software. The company, which is headquartered in Vancouver, Canada, raised $3m from BDC and The Working Opportunity Fund. The company will use the funding to complete product development and to bring its product to market.

Pod Holding leads round for CoreStreet
Pod Holding has led a round of venture capital financing for CoreStreet, a company that provides of authorisation and validation software. The first round funding totalled $4m and included a number of individual and private investors. The company will use the funding to expand product and business development. A representative from Pod Holding will take a seat on CoreStreet's board of directors.

Advent International leads round for Demantra
Advent International has led a series B round of equity funding for Demantra, a provider of consumer demand-driven supply chain software based in Cambridge, Massachusetts. The company raised $16m in this round, which will primarily be used for operating capital, but will also dedicate some of the funds to marketing and sales initiatives, further expansion of its product suite, and possible acquisitions. Existing investors Formula Ventures, The Challenge Funds, Intel Capital, and Paul Baan's Stichting Stewardship Foundation also participated.

Intel Capital invests in Credant
Intel Capital has committed an undisclosed amount of venture capital to Credant Technologies, a Dallas, Texas-based provider of security software for mobile enterprises in the healthcare, financial services and professional services sectors. The company will use the funds for sales, marketing and further product development. Founded in September 2001, the company has also been backed by Austin Ventures and Menlo Ventures. Prior to Intel's investment, Credant had received $19.5m in venture capital financing.

Media

Investment:

Apollo funds new 24-hour sports channel
Apollo Management and DND Capital Partners have joined a number of other investors in a round of equity financing for The Tennis Channel, a 24-hour cable television network that offers constant coverage of tennis and other racquet sports. The amount of the funding was undisclosed but it will allow the company to launch its product in May 2003. Other investors in the transaction included EdsLink, WaterView Partners, Bain Capital, Battery Ventures, Columbia Capital and JP Morgan Partners, as well as tennis professionals André Agassi and Pete Sampras.

Manufacturing

Investments:

Castle Harlan completes secondary buy-out from JP Morgan Partners
US private equity firm Castle Harlan has acquired Advanced Accessory Systems in a transaction valued at approximately $260m. The company is based in Sterling Heights, Michigan where it makes roof racks and towing systems for the automotive industry. Advanced Accessory Systems was previously owned by JPMorgan Partners, which invested around $20 million in 1995.

American Capital commits to siding manufacturer
American Capital Strategies has committed funds to a round of equity financing for Nailite International, a manufacturer of polypropylene siding for use in the construction housing markets. The funding from American Capital is in support of the acquisition of Nailite by Graham Partners, a US-based private equity firm. The additional funds will be used for product development and company expansion.

Transportation

Investment:

American Capital invests in logistics company
American Capital Strategies has invested in a round of venture financing for FMI International, a Bethesda, Maryland-based company that provides logistics solutions to the US clothing industry. The company received $49m from American Capital and $20m from Crédit Agricole Indosuez, as well as an investment from the company's management team. This recapitalisation round was led by KRG Capital Partners.

Internet

Investment:

Rho Ventures commits to Ipsum
Rho Ventures has committed funds to Ipsum Networks, a Philadelphia-based company that develops internet protocol management solutions. Sevin Rosen Funds also participated in this series B round of financing, the proceeds of which will be used to expand sales and marketing, to increase business development initiatives and to accelerate production and development efforts.

Asia

Telecommunications

Investment:

Star invests in UPT
Star Ventures has committed funds to a second closing on a first round of equity financing for United Platform Technologies, a Beijing, China-based company that provides communications equipment and related products to wireless carriers in China. Having secured $50m in March 2003, the company has raised an additional $50m from a group of investors, including Star Ventures, Morgenthaler Ventures and Hitachi. The additional funds totalled $8m and will be used for product development.

Copyright © 2003 AltAssets

Alex Hingston is a researcher with AltAssets.

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