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Latest Deals: 7 May - 13 May 2003

The AltAssets weekly round up of deals done across the world. This week there were 110 active investors in 43 deals and five exits across 14 sectors, compared to 110 active investors in 41 deals and two exits the previous week…

Active investors this week

Western Europe & Israel

Investments

Real Estate

Bank of Scotland Joint Ventures backs MBO of Beechcroft
Bank of Scotland Joint Ventures has backed the management buy-out of Beechcroft, a UK-based property developer. The company, which develops homes for people aged over 55, has been acquired for £48.5m from John Laing Homes. Travers Smith Braithwaite advised bank of Scotland Joint Ventures while Osborne Clarke advised the management team.

Software

Wellington Partners and Insight invest in Astaro
German private equity firm Wellington Partners has joined up with US-based venture capital firm Insight Venture Partners to invest in a round of financing for Astaro. The company is situated in Karlsruhe, Germany, and provides solutions that safeguard enterprise networks against hackers, viruses and other internet risks. The round totalled E5.6m and will be used to expand the product portfolio and to broaden its base of distribution partners worldwide.

Technology

Denali Ventures invests in Real-Time Radiography
Denali Ventures has committed capital to a round of equity financing for Real-Time Radiography, an Israeli company that develops X-ray systems for use in medical imaging, aeronautics and security systems. The company raised $2.25m in this round of financing and will be used to develop its product and enter into the global marketplace. Other investors in the round included Millennium Materials Technologies Fund II, Risk Venture Capital, First IsraTech Fund and Maniv Bioventures.

Pentech Ventures finances Sonaptic
Early-stage technology venture firm Pentech Ventures has provided equity to a first round of funding for UK-based audio solutions company Sonaptic. The company received £1m from Pentech, which it will use to develop 3D-audio and other sound technologies. Founded in October 2002, Sonaptic delivers audio solutions for mobile devices such as telephones and personal digital assistants.

Baytech Venture Capital commits to Xignal
Baytech Venture Capital has invested in Xignal Technologies, a semiconductor design firm. Based in Munich, Germany, the company raised E10m in this series B financing. New investors Baytech Venture Capital and Atila Ventures/ETV Beteiligungs co-led the round, and existing investors Benchmark Capital and Star Ventures also participated. The company will use the new funding for continuing product development, sales, business development and establishing an office in the US.

Vertex Israel joins in second tranche for CogniTens
Vertex Israel has participated in a second tranche of a third round of financing for CogniTens, a Ramat Hasheron, Israel-based provider of 3D measurement systems for industrial applications in the automotive and aerospace industries. The company raised an additional $3.25m to close its third round at $7.25m. New investor Vertex Israel co-led the tranche along with Walden Israel. Previous investor Yozma also provided funds to this tranche. The proceeds from the round will be used for sales and marketing.

Manufacturing

BVP Europe LP II invests in Guillod Gunther
BVP Europe LP II, a private equity fund advised by Léman Capital, a Switzerland-based private equity advisory company, has acquired a stake in Guillod Gunther. The watch case manufacturer is located in La Chaux-de-Fonds, Switzerland, the country's watch-making industry centre. The terms of the transaction were not disclosed.

Secondary buy-out/exit:

ABN Amro Capital leads secondary buy-out of Frank Thomas
ABN Amro Capital has led a £38m secondary buy-out of Frank Thomas Holdings Limited, a UK-based specialist clothing manufacturer and distributor. The company focuses on making clothes and accessories for motorcyclists, including boots and leather clothing. The transaction provides an exit for Barclays Private Equity, which backed the management buy-out of the company in 1999.

Automotive & Transport

IPE acquires majority stake in ERMEWA Group
Investors in Private Equity has acquired a majority stake in the ERMEWA Group, a Swiss company that provides specialised railcar rental, as well as tank container rental. IPE has acquired a 50.4 per cent stake in the company with SNCF Participations, an industrial partner, holding the remaining 49.6 per cent of the shares. The financial terms of the transaction were not disclosed.

Healthcare & Life Sciences

InnovationsKapital commits to Bone Support
Swedish early-stage venture capital firm InnovationsKapital has committed to a round of equity financing for Bone Support, a Scandinavian biotechnology company that develops injectable bone material products for the treatment of fractures. The company raised E5m in its first round of financing from InnovationsKapital and Norwegian venture firm Teknoinvest. The investment will be used to cover the development of the company's first product.

NIF Ventures funds Diatos
Japanese venture capital firm NIF Ventures has invested in a E2.5m financing for Diatos, a Paris, France-based biopharmaceutical company that develops human therapies based on cellular-delivery and drug-targeting technologies. This latest tranche of capital closes the round at E9m, the proceeds of which will be used for the development of the company's lead anti-cancer therapies.

Swedestart provides capital to Jolife
Swedestart Life Science has invested capital in Jolife, a medical technology company. Headquartered in Lund, Sweden, Jolife is developing a device for the pre-hospital treatment of sudden cardiac arrest. The company raised E3m in this first round of institutional financing, the proceeds of which will be devoted to the international commercialisation of its flagship product and will also go towards the collection of additional clinical data and to further product development. InnovationsKapital also participated in the transaction.

Exits

Real Estate

Cargill Investments exits UK property company
Cargill Investments has realised its investment in Knowle, a UK-based property company and subsidiary of Knowle Freehold. Cargill, and strategic investor Kewbrook, sold the company to Targetfellow Group for £13.5m. Cargill and Kewbrook were advised in this transaction by law firm Ashurst Morris Crisp while Mills and Reeve advised Targetfellow.

Central & Eastern Europe

Investments

Financial Services

Enterprise Investors acquires stake in Kruk
Polish private equity firm Enterprise Investors has invested E10.41m in Kruk Systemy Inkaso, a Polish company that specialises in receivables management services. Based in Wroclaw, Poland, the company was formed in 1998 and provides debt management and collection services for corporate clients, including banks, utilities and telecoms companies. Enterprise Investors has acquired 70 per cent of Kruk Systemy Inkaso.

Retail

Enterprise Investors invests in LPP SA
Enterprise Investors has committed capital to a round of equity financing for LPP SA. The firm, via its Polish Enterprise Fund IV, has invested E11.8m in return for a 13 per cent stake in the company. Founded in 1995, the company is active in the Polish fashion retail market where it targets the younger generations. The company designs and sells clothing through a network of 54 stores located in a number of major cities throughout the Central and Eastern European region.

North America

Investments

Networking

Sandler Capital invests in Broadband Innovations
Sandler Capital Management has invested in a recapitalisation round of financing for Broadband Innovations, a San Diego, California-based provider of radio frequency solutions for the cable industry. The company closed the round on $8m from new investor Sandler Capital Management and existing investor Lauder Partners. Strategic Investors Scientific-Atlanta and Motorola also participated. The round of funding will serve as working capital and will go towards research and development. The company has raised $35m since its foundation in 1990.

Technology

EnerTech Capital finances Enerwise
EnerTech Capital has provided capital to a round of venture financing for Enerwise Global Technologies, a Kennett Square, Pennsylvania-based provider of automated and remote monitoring systems for energy usage data. The amount of capital invested in this round remained undisclosed but it will be used for working capital needs and for specific projects. Hydro-Québec CapiTech and Exelon Capital Partners also participated in the transaction.

North Bridge funds SoundBite
North Bridge Venture Partners has participated in a round of equity financing for SoundBite Communications, a provider of interactive voice messaging solutions. The company is headquartered in Burlington, Massachusetts, where it secured $5m from North Bridge, The Venture Capital Fund of New England and Mosaic Venture Partners. SoundBite will use the new capital to accelerate the company's growth both domestically and internationally by expanding sales and marketing.

CDP commits to XYZ
CDP - Capital Technology Ventures has committed funds to XYZ Imaging. The Canadian company, which has developed a 3-D colour holographic printer, closed this round on $3.5m. The capital will enable the company to open a service centre in Montréal and to roll out a first version of its digital holographic printer. Fondaction CSN, Innovatech Montréal, Investissements Daniel Langlois and HDG joined CDP - Capital Technology Ventures in this financing.

Ironside Venture Partners invests in Equator
Ironside Venture Partners is among a group of investors that have committed capital to Equator Technologies, a Campbell, California-based company that provides programmable processors for video streaming and image processing applications. The $11m financing was led by CIBC World Markets, i-Hatch Ventures, Ironside Venture Partners, Jafco America Ventures and MMC Capital. Strategic investors Orix USA Corporation, Polycom, Rogers Communications and Sojecci also participated. The funds will be used to help continue product development.

Comcast Interactive invests in Nuera
Comcast Interactive Capital has invested in Nuera Communications, a San Diego, California-based provider of IP infrastructure solutions for cable television, broadband and telecom service providers. The company raised $20m in this recapitalisation of its 1997 series A funding. The investment was led by Comcast Interactive Capital, Sandler Capital Management, Argo Global Capital and strategic investor Cox Communications. Return backers included HarbourVest Partners, Bay Partners, Gleacher & Co, Goldman Sachs Capital Partners, Deutsche Bank Capital Partners and SAIC Venture Capital.

Kleiner Perkins backs Vertical Networks' recap round
Kleiner Perkins Caufield & Byers has backed the recapitalisation of Vertical Networks, a Californian developer of an integrated hardware-based platform that delivers voice, data and applications software. The company secured $5m in its recapitalised round of financing. Kleiner Perkins led the round, which also included Levensohn Venture Partners, Accel Partners,  Focus Ventures, strategic investor First Plaza and individuals. To date, Vertical Networks has raised $123m. The proceeds from the down round will be used for product development, sales and marketing.

Doll Capital invests in Bainbridge
Doll Capital Management has invested in Bainbridge Industries, a Kirkland, Washington-based provider of motion control devices. Bainbridge raised $8m in the final tranche of its series A round to close the round at $12.8m, the proceeds of which are being used to fund the acquisition of Lynn, a provider of semiconductor replacement components, engineered industrial coatings and vacuum processing components. Lynn is based in Boise, Idaho. Bainbridge will also use some of the new capital for operations. Several individual investors also participated in this latest financing.

Wireless

Granite Global leads investment in Vocera
Granite Global Ventures has led a round of venture financing for Vocera Communications, a company that develops wireless communications systems. Located in Cupertino, California the company has secured $8m in this fourth round from Granite, Venrock Associates, RRE Ventures, Vanguard Ventures and Avalon Ventures. The new capital will be put towards increasing the company's market presence and expanding its customer base.

Sport & Leisure

The Roda Group invests in CoolSystems
The Roda Group has provided capital to CoolSystems, a provider of sports injury treatment systems. Headquartered in Berkeley, California, CoolSystems secured $2.4m in this series F funding, which was led by The Roda Group and included The Brian and Jennifer Maxwell Trust. There were also several individual investors involved in the financing, such as the sports agent Leigh Steinberg and the University of California at Berkeley basketball coach Ben Braun. The new funds will be devoted to an expansion of the company's distribution network to include the equine treatment and multiple sclerosis markets, as well as to establish market presence in Europe, Canada and Australia, according to VentureWire.

Healthcare & Life Sciences

Zero Stage Capital invests in US Genomics
Zero Stage Capital is among a group of investors in a round of equity financing for US Genomics, a Woburn, Massachusetts-based healthcare company. The round totalled $25m, the proceeds of which will be used to commercialise its core technology. Other investors in the developer of single molecule analysis technologies included CB Health Ventures, China Development Industrial Bank, Fidelity BioSciences Group and Healthcare Ventures.

ATV leads investment in Trans1
Advanced Technology Ventures has led an equity investment in medical device company Trans1. Headquartered in Wilmington, North Carolina, the company develops medical devices for the treatment of lower back pain. Delphi Ventures, Cutlass Capital and Sapient Capital joined ATV in this $12m series B round. The latest capital will be used to complete the development of the company's core product.

Techno Venture Management invests in Acorda
Techno Venture Management has committed capital to a round of equity financing for Acorda Therapeutics, a New York-based biotechnology company that develops therapies for spinal cord injury and related neurological conditions. The financing totalled $55.3m and will be used to advance its clinical and pre-clinical programmes. Easton Hunt Capital Partners led the financing, which also included ABN Amro Capital, Cross Atlantic Partners and JP Morgan Fleming Asset Management. Acorda has raised $129m since it was founded in 1995.

VenGrowth invests in Axela
VenGrowth Capital Partners has invested $3.3m in a round of financing for Axela Biosensors, a Canadian company that spun out of the University of Toronto. Axela was founded to commercialise an optical-based sensor technology for the biotechnology sector. The investment was part of a $3.7m series A round of financing, which also included Primaxis Technology Ventures and Royal Bay Capital. The funds will help the company in its commercialisation of the product.

The Sprout Group invests in Symyx Therapeutics
The Sprout Group has led a round of equity financing for Symyx Therapeutics, a Santa Clara, California-based company. Symyx Therapeutics was established by Symyx Technologies to discover and develop new therapeutics for life science, chemical and electronic applications. The company received $8m in this series A financing that will go towards product development. 5am Ventures also participated.

Heritage backs acquisition of Aquatic Rehab
Heritage Partners has backed the acquisition of Aquatic Rehab Sports Med & Hand Center, a Southern Californian company that specialises in aquatic/pool therapy and hand therapy. The acquisition was made through Heritage Partners' portfolio company, RivienHealth. The terms of the transaction were not disclosed, according to PrivateEquityCentral.

Galen Partners funds Cortek's fifth round
Galen Partners has invested in a fifth round of venture capital financing for Cortek, a developer of spinal implants for the treatment of degenerative disc disease. The company is located in Dedham, Massachusetts, and raised $5.8m in the second part of this series D round. Fletcher Spaght Ventures, Delphi Ventures, The Kaufman Group, Partech International, Prism Venture Partners and a number of new and existing individual investors also participated. In total, the company has raised $30.8m since it was founded. The latest financing will be devoted to infrastructure and inventory to support ongoing sales, as well as to development of other new spinal implants.

Genesys Capital Partners finances Plexagen
Genesys Capital Partners has provided Plexagen Diagnostics with its latest round of equity financing. Plexagen is a biotech company based in Ottawa, Canada, that develops products to allow laboratory technicians and medical professionals to simultaneously conduct tests for infectious diseases. The company secured $1.2m in this seed round financing from Genesys Capital Partners. The new capital will go towards its ongoing clinical trials.

Manufacturing

Wynnchurch Capital backs acquisition of Old Line Plastics
Wynnchurch Capital has backed the acquisition of Old Line Plastics, a Maryland-based company that manufactures and assembles precision plastic components, primarily for the automotive industry. The acquisition was made through Morning Calm Holdings, a platform company, although the financial terms of the transaction remain undisclosed.

Software

FAT Capital invests in OSA Technologies
FAT Capital has invested in a series B round of institutional financing for OSA Technologies, a provider of embedded platform management solutions to the global server, telecommunications, networking and storage marketplace. Situated in San Jose, California, the company secured $9m in this round, the proceeds of which will be used for product development. New investors included FAT Capital, AsiaVest, Foxconn, and Sycamore Ventures, as well as a number of strategic investors. Intel Capital, an existing investor in the company, also invested in this round.

Stanford Venture Capital Group invests in Stronghold
Stanford Venture Capital Group has invested in a New Jersey-based developer of enterprise software systems. Stronghold Technologies develops software systems that leverage wireless technologies for the automotive retail industry. The company raised $2.2m, which will be used to develop its dealer network through additional sales and support personnel located throughout the US.

Draper Fisher Jurvetson funds Clickmarks
Draper Fisher Jurvetson ePlanet Ventures has committed capital to Clickmarks, a Palo Alto, California-based provider of software solutions for web and wireless application development and deployment. The company has raised $5m in new funding from Draper Fisher Jurvetson ePlanet Ventures, RB Webber & Co and Vodafone Ventures, according to Private Equity Week.

Venture Coaches leads round for PointShot Wireless
Venture Coaches has led a round of equity financing for PointShot Wireless, a developer of wireless infrastructure applications. The Ottawa, Canada-based company raised an undisclosed amount of financing in this seed round. The proceeds of the round will be used for sales, marketing and further product development.

Austin Ventures leads round for Acorn Systems
Austin Ventures has led an expansion round of equity financing for Acorn Systems, a Houston, Texas-based company that develops profit management and optimisation software. The company has secured $9m in this round from Austin Ventures and another previous investor Insight Venture Partners. The funds will go towards helping the company to expand its presence in the distribution, financial services, consumer packaged goods and energy industries.

Pequot Capital commits to Swingtide
Pequot Capital Management has committed funds to the latest tranche in a first round of financing for Swingtide, a Portsmouth, New Hampshire-based provider of software for managing XML-based services. The company raised $3m to close the round at $7m. Existing investor Pequot Capital Management led the second tranche and individual investors also participated. The proceeds from the round will be used for product development and marketing, according to VentureWire.

Food & Beverage

Arch Development Partners funds sugar producer
Arch Development Partners has backed ZuChem in its $850,000 round of financing. Zuchem is based in Chicago, where it provides specialised sugars for the food and pharmaceutical industry. The company raised the series A financing from lead investor Arch Development Partners and The Technology Development Bridge Fund. The capital will be used to expand the company's research operations in Peoria, Illinois. ZuChem will also use the funding to accelerate its product development for the pharmaceutical industry. The company is developing sugar-based pharmaceutical products that can be used to create antibiotics, anticancer and antiviral drugs.

GTCR launches platform company
GTCR Golder Rauner has committed $200m to the launch of Fairmount Food Group, a conglomerate focused on acquiring food and beverage companies. The management team consists of Bing Graffunder, chief executive officer of Fairmount and former president of Morningstar Foods, and Sam Hillin, the company's chief financial officer. GTCR currently has over $4bn under management and concentrates on investments in the transaction processing and payments services, communication services, information technology services, healthcare services and outsourced business service sectors.

Internet

Charles River Ventures commits to Redline
Charles River Ventures has committed capital to Redline Networks. The company, which is located in Campbell, California, develops web acceleration devices and applications that can help companies to reduce download times and cut bandwidth costs. The series C round of financing totalled $12m and included Charles River Ventures and Advanced Technology Ventures. It brings Redline's total venture capital funding to $24.8m. The latest capital will enable the company to continue developing its global sales, service and reseller network and to continue the development of its product line.

Media

Innovatech Québec funds Infomedia
Innovatech Québec has provided capital to Infomedia Research Group. The company, which is located in Quebec City, Canada, was established in 1996 and specialises in the research and development of systems, products and applications designed to promote the convergence of information technology, telecommunications and media. The investment totalled $720,000 and brings total investment in Infomedia to $6m. The funding will allow the company to enter into the commercialisation phase of its growth.

Exits

Healthcare & Life Sciences

TVM achieves partial exit from Idenix
Techno Venture Management has achieved a partial exit from its investment in Idenix Pharmaceuticals, a Cambridge, Massachusetts-based company engaged in the discovery and development of drug candidates for infectious diseases. The company was acquired by Novartis Pharma for $255m, with up to an additional $375m contingent upon achievement of certain milestones.

Huron Capital sells Prism Enterprises
Huron Capital Partners has sold its stake in Prism Enterprises to The Cooper Cos for approximately $23m. Prism Enterprises is situated in San Antonio, Texas, where it specialises in women's healthcare products such as devices to aid childbirth, heat packs and gynaecological catheters. Huron originally acquired the company in 2000 for $21.5m.

Software

Alexander Hutton and Madrona exit Performant
Alexander Hutton Venture Partners and Madrona Venture Group have realised their investments in Performant through a trade sale to Mercury Interactive. Bellevue, Washington-based Performant provides J2EE diagnostics software. Mercury Interactive is a publicly-held developer of business technology optimisation products including enterprise testing, production tuning and application management. Mercury paid $22.5m for Performant, which had raised a total of $10.5m in venture financing from investors such as Alexander Hutton and Madrona Venture Group.

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.