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Latest Deals: 14 May - 20 May 2003

The AltAssets weekly round up of deals done across the world. This week there were 137 active investors in 46 deals and two exits across 13 sectors, compared to 110 active investors in 43 deals and five exits the previous week…

Active investors this week

Western Europe & Israel

Investments

Software

CDC Ixis Innovation funds Zandan
French private equity firm CDC Ixis Innovation has provided capital to a round of institutional venture financing for Zandan, a software developer that enhances mobile services based in Paris, France. This third round of funding for the company totalled E3.5m, the proceeds of which will be used to accelerate the development of the product and also its own growth internationally. BNP Private Equity also participated in the transaction.

Apax Partners invests in Webraska
Apax Partners has invested in a round of financing for Paris, France-based Webraska, a provider of location-based services and enabling software for wireless navigation. The company secured E4.5m in this round, the proceeds of which will be used for expansion and to support operations. The transaction also included a number of strategic investors, such as Philips Electronics, Infineon and Openwave. In addition, Webraska will strengthen its North American market presence by adding sales, business development, professional services and support capabilities in the US.

Wellington Partners and Partech invest in Meiosys
Wellington Partners has joined up with Partech International and Cisco Systems in a round of venture capital financing for Meiosys, a Paris, France-based company that develops software products for business critical and mission critical applications and systems. The company raised E5.5m in its first round, which will be used for product development and sales and marketing.

Aurelia Private Equity invests in Weblicon
Aurelia Private Equity has invested in an expansion round of venture capital financing for Weblicon Technologies, a Berlin, Germany-based company that provides personal information management software. The investment totals E3.8m and will be directed towards the company's expansion in the areas of sales and marketing. Aurelia Private Equity was established at the beginning of 2003 to invest in growth technology companies in information technology, telecommunications and life sciences.

Technology

TechnoStart and TechFund Capital Europe commit to Novaled
TechnoStart and TechFund Capital Europe have committed funds to a round of financing for Novaled, a Dresden, Germany-based company that recently spun out of the Technical University of Dresden and the Fraunhofer Institute for Photonic Microsystems. The company is developing organic light-emitting diode technology. It raised E5.75m from investors in this round, which also included Dresden Fonds, tbg and strategic investor Thomson, a media services and equipment company. The capital will go towards developing the company's core product.

Vision Capital funds Avalon
Vision Capital has committed funds to a round of financing for Swiss company Avalon Photonics. Headquartered in Zurich, the company is an optoelectronic component manufacturer. The second round totalled $5.5m and will be used for product development and to expand sales and marketing. Vision Capital led the investment, which also included financing from existing investors Viventures and CSEM as well as new investors Venture Incubator and innotech.

Doughty Hanson leads investment in Alphamosaic
Doughty Hanson Technology Ventures has led a series B round of venture financing for Cambridge, UK-based semiconductor developer Alphamosaic. The company develops its products to enable and develop the use of video in mobile telephone applications. The round totalled £7.3m and will be used to expand the company's product portfolio and to grow its worldwide operations. Existing investors Prelude Trust, ACT Venture Capital and TTP Ventures joined Doughty Hanson in this round.

Big Bang invests in UMX Technologies
Big Bang Ventures has invested in UMX Technologies, an Amsterdam, Netherlands-based company that develops mainframe solutions for Intel-based computers. The round totalled E2.8m from Big Bang and Wellington Partners, as well as IV-One, Kerswerf and Twinning. The new capital will be used to expand the company's sales and marketing efforts and to develop an infrastructure to support its customers and partners.

Shamrock invests in CMT's PIPE
Shamrock Capital Growth Funds has invested $6m in a PIPE transaction for Israeli company CMT Medical Technologies. Based in Haifa, Israel, the company is traded on the Nouveau Marché in Paris. CMT designs, develops, manufactures and markets high-resolution digital imaging systems for use in the healthcare and life sciences sector. The capital will go towards acquisitions of companies that are in line with CMT's core business.

Media

Legal & General acquires UK operations of Warner Village
Legal & General Ventures and Lloyds Development Capital have backed the acquisition of the UK operations of the Warner Village Cinemas Group. The two firms provided the equity for the transaction, along with US private equity firms Boston Ventures and Clarity Partners, which totalled £225m. The operations will be merged with SBC International Cinemas, a small UK-based chain of cinemas that was acquired by Boston Ventures in 1998. CIBC World Markets provided the debt financing, while law firm Ashurst Morris Crisp advised Legal & General Ventures and Lloyds Development Capital.

Healthcare & Life Sciences

Siparex Ventures invests in BMD
Siparex Ventures has invested in a E9.3m round of equity financing for Biomedical Diagnostics, a Marne-la-Vallé, France-based company develops and markets biological diagnostic tools for the medical sector. Siparex, Truffle Venture and Europe Innovation led the round, with participation from AGF Private Equity, 123 Multinova, CDC Ixis Innovation, Auriga Partners, Sudinnova and Natexis Ventech. The latest funds will enable BMD to accelerate the development of its lead product.

Exits

Retail

AMJPE exits greeting card retailer
Aberdeen Murray Johnstone Private Equity has realised its investment in Card Warehouse, a discount greeting card retailer based in the UK. The company was acquired by UK-based Cardfair in a transaction valued at £45m. This provided AMJPE with a return on its investment of 2.5x and an IRR of 22 per cent. The company had 72 outlets when AMJPE backed the company's management buy-in, a number that had risen to 230 at the time of the exit.

Central & Eastern Europe

Investments

Telecommunications

AIG and GMT complete acquisition of Vivendi Telecom Hungary
UK GMT Communications Partners and US AIG Emerging Europe Infrastructure Fund have finalised their acquisition of Hungarian fixed line telecommunications operator, Vivendi Telecom Hungary. The E325m transaction is one of the largest leveraged buy-outs to have taken place in Central and Eastern Europe. VTH reported annual revenues in 2002 of E176m.

Financial Services

Intel Capital commits to ru-Net
Intel Capital has participated in a round of equity financing for ru-Net Holdings, an IT investment company. ru-Net Holdings is based in Moscow, Russia, where it intends to use the $10m for investments in IT services and consulting companies, particularly TopS Business Integrator, a ru-Net group company. The financing involved several other investors, including Baring Vostok Capital Partners, Rex Capital and International Finance Corporation. The capital will be used to help TopS Business accelerate its growth strategy.

North America

Investments

Services

Draper Atlantic invests in SynapseSoft
Draper Atlantic has invested in a round of equity financing for SynapseSoft, a Vienna, Virginia-based provider of outsourced software development services and a developer of mobile technology for field service workers. The company has raised approximately $4m in this series A round of funding, which it will use for working capital, according to VentureWire.

Kleiner Perkins provides funds for Ketera
Kleiner Perkins Caufield & Byers has become the latest investor in Ketera Technologies, a Californian company that provides hosted management services. Located in Mountain View, the company raised an undisclosed amount of capital from Kleiner Perkins and American Express. As a result of the round Ted Schlein, general partner with Kleiner Perkins, has joined the Ketera's board of directors. The new capital will go towards improving its services to meet customer demand.

Sutter Hill invests in Object Reservoir
Sutter Hill Ventures has invested an additional $2.5m in Object Reservoir, an Austin, Texas-based company that provides information on reserve estimates, production forecasts and reservoir size and shape. Sutter Hill Ventures was the sole investor in this tranche of the series C round, which has now been capped at $9.2m. The proceeds from this financing will be used to enable the company's entry into new markets.

Technology

Menlo Ventures finances VhaYu
Menlo Ventures has led a series B round of institutional financing for VhaYu Technologies, a Los Gatos, California-based company that provides real-time data capture, storage and analytics technology for the financial services industry. The company will use the $6.5m that it raised in this round to broaden its product platform, expand its sales and marketing programme, support its customer base and strengthen its strategic alliances with financial IT vendors.

JP Morgan Partners and Apax back Cadent
JP Morgan Partners and Apax Partners have backed Cadent, a provider of 3D digital information technology that enables computer-aided design camera functions to be used in dental and orthodontic procedures. Located in New Jersey, with an R&D centre in Israel, the company secured $5.3m in series D financing, the proceeds of which will be devoted to the launch of Cadent's orthodontic service, OrthoCAD. The funds will also go towards the further development of similar technology for dental procedures, targeting dental crowns and bridges. The funds were provided by several prior investors, including Apax Partners, JP Morgan Partners, Pitango Venture Capital and Schroder Ventures Life Sciences.

Austin Ventures leads round for RLX Technologies
Austin Ventures was the lead investor in a round of venture capital financing for RLX Technologies, a provider of blade-server solutions. The company is situated in The Woodlands, Texas, and will use the $23m that it raised in this oversubscribed series C round for product development. Joining Austin Ventures in the financing were Soros Private Equity, Sternhill Partners, Ignition Partners, ComVentures, Cracken Harkey and Co and Cockrell Investment Partners.

Bessemer Venture Partners finances Sandbridge
Bessemer Venture Partners was the lead investor in a series B round of institutional financing for Sandbridge Technologies. Focused on developing chipset technology for broadband wireless communications devices, the White Plains, New York-based company has closed a $19.5m funding from a number of investors. Atlas Venture and Columbia Capital, like Bessemer, also returned for the round, while new investors China Development Industrial Bank, Doughty Hanson & Co and Infineon Ventures participated as well. The company intends to use the funds to launch its final product and to support Sandbridge until revenues come in.

Austin Ventures provides mezzanine capital for NetBotz
Austin Ventures has invested in NetBotz, an Austin, Texas-based provider of intelligent physical security technology. The company has closed a $7m mezzanine funding from new investor Austin Ventures, the proceeds of which NetBotz will use to support and continue its growth and increase its market share. NetBotz was established in 1999 and has raised a total of $27m to date.

Charles River assumes lead in round for Rosum
Charles River Ventures has taken the position of lead investor in a round of venture capital financing for Rosum, a developer of technology that uses broadcast television signals to provide location-based services. Located in Redwood City, California, the company raised $16m in this series A round. New investor Charles River Ventures was joined by fellow new investors Allegis Capital, Motorola Ventures and Steamboat Ventures, as well as the Korean Technology Bank and Microtune. The proceeds will be used to support ongoing projects in Asia and the US.

River Cities commits to SPS
River Cities Capital Funds has invested in a second round of equity financing for SPS Commerce, a St Paul, Minnesota-based company that provides supply chain integration services. Participating private equity firms included River Cities Capital Funds, St Paul Venture Capital, CID Equity Partners, Adams Street Partners, Granite Private Equity, Svoboda Collins & Co, Pacific Capital Ventures and Axiom Venture Partners. The $18m that the company secured will be used for future acquisitions.

BASF Venture Capital invests in Catalytic Solutions
BASF Venture Capital, a German private equity firm, has invested in a $32.4m series D round for Catalytic Solutions, an Oxnard, California-based manufacturer of catalytic coating technologies. The round was led by RockPort Capital Partners, EnerTech Capital Partners, and Advent International and also included participation from previous investors Cinergy Ventures, NGen Partners, Cycad Group and JP Morgan Partners. The latest capital will be used for product development, marketing and production.

Wireless

Draper Fisher commits to Visto
Draper Fisher Jurvetson has committed capital to Visto, a Californian company that provides personal and corporate mobile access applications. Visto has raised $30.3m so far in this round of financing, which is being left open for further investment. New investors Draper Fisher Jurvetson and Oak Investment Partners co-led the round. Blueprint Ventures and existing investors Allegis Capital, Bessemer Venture Partners, New Enterprise Associates and Rustic Canyon Group also invested alongside the leaders. The proceeds of the round will be used for acquisitions, sales and product development.

Food & Beverage

Centre Partners Management acquires tuna company
US private equity firm Centre Partners Management has acquired San Diego, California-based tuna company Bumble Bee Seafoods from ConAgra Foods. The full terms of the transaction were not disclosed but Fleet Capital Corp provided a credit facility to support the acquisition while American Capital Strategies provided mezzanine financing. There was also £25m of mezzanine financing from Audax Mezzanine Fund. The deal will give Centre Partners control of the company's group of tuna brands, including Bumble Bee, Orleans, Clover Leaf and its Australian Paramount brand.

Healthcare & Life Sciences

JP Morgan Partners invests in healthcare PIPE
JP Morgan Partners and Baker Brothers Investments have committed capital to a private placement for Seattle Genetics, a Bothell, Washington-based company that is traded on the Nasdaq. The company discovers and develops antibody-based therapeutics to treat cancer and other human diseases. The PIPE transaction totalled $40m and included Delphi Ventures and BA Venture Partners. The additional funds will allow the company to continue clinical trials and to intensify its research and development initiatives.

St Paul Venture Capital leads round for Emphasys
St Paul Venture Capital has led a round of investment in Emphasys Medical, a developer of therapies to improve quality of life for patients living with emphysema. The company is headquartered in Redwood City, California, where it raised $15m in this series C round. St Paul provided $5m of the total, with the remainder coming from existing investors, including ABS Capital Partners, Advanced Technology Ventures, Morgenthaler Ventures, and New Enterprise Associates. Proceeds from the round will be used for clinical trials of the company's lead product.

Advanced Technology Ventures funds PerCardia
Advanced Technology Ventures has invested in PerCardia's series D round of venture capital financing. PerCardia is a medical device company that develops implants for the treatment of coronary artery disease. Located in Merrimack, New Hampshire, the company raised a total of $10.6m in this round, which included a number of other existing investors, such as Atlas Venture, Crescendo Ventures, Prism Venture Partners and Vanguard Venture Partners. Strategic partner Medtronic also participated. Proceeds from the financing will be devoted to ongoing clinical trials of Percardia's first product.

Ascension Health Ventures provides $1m to SterilMed
Ascension Health Ventures has provided $1m in a round of financing for SterilMed, a company that remanufactures medical devices for hospitals and other healthcare facilities. Based in Maple Grove, Minnesota, the company secured an additional $1m in its first institutional venture financing, capping the round with a total of $9m. Other investors in the round included First Analysis, Prism Opportunity Fund, and Sterling Ventures.

Millennium Partners invests in Ariad
Millennium Partners and Merlin BioMed Group have invested in a round of equity financing for publicly-traded Ariad Pharmaceuticals, a Cambridge, Massachusetts-based company that develops small-molecule drugs for the treatment of cancer. The PIPE transaction totalled $10m, which Ariad will use for product development. This new capital comes on top of a $6m round of financing in November 2002 and brings the company's total funding from both private and public equity to $150m since its inception.

Trivest acquires Regional Diagnostics
Trivest Partners has acquired a Cleveland, Ohio-based provider of outpatient diagnostic imaging services. The firm has taken a majority stake in Regional Diagnostics for an undisclosed sum. The company's management retains a 40 per cent stake. The company operates 27 outpatient imaging centres and has annual revenues in excess of $35m.

Manufacturing

HIG Capital acquires Halo businesses
HIG Capital has acquired several businesses from Halo Industries for a total consideration of $22m in cash and notes. The companies include Halo Branded Solutions, Lee Wayne Corporation and Halo Europe. They have been sold to Halo Holdings, a new company affiliated to HIG Capital. The transaction allows the companies to emerge from Chapter 11 and return to normal operating status.

Software

Trinity Ventures leads investment in Sabrix
Trinity Ventures has led a series C financing round for Sabrix, a San Ramon, California-based company that provides global transaction tax management software and research. The company secured $10.5m in this round, which included Mohr, Davidow Ventures and Venture Strategy Partners. It brings Sabrix's total funds raised to $29.6m. The proceeds will be used for continued expansion and to increase the sales and marketing efforts.

Woodside Fund co-leads investment in Intalio
Woodside Fund has co-led an investment in Intalio, a provider of business process management software. With its head office in San Mateo, California, the company closed the round at $5m, the proceeds of which will be dedicated to the expansion of its sales and marketing programmes focused on its business process management system. Existing investors Woodside Fund, 3i, XML Fund, SAP Ventures and Sippl MacDonald Ventures co-led the round.

ATV invests in e-Security
Advanced Technology Ventures has committed capital to a round of financing for e-Security, a provider of security event management software based in Vienna, Virginia. The company raised $5m from ATV, bringing total investment in e-Security to $35m. The funding will enable the company to bolster its sales and marketing operations. Brian Hanson of ATV has also been named to e-Security's board of directors.

Egan-Managed Capital joins investors in financing for Nexaweb
Egan-Managed Capital has joined up with Masthead Venture Partners and Velocity Partners to invest in Nexaweb Technologies, a provider of software that enables companies to deploy web applications. The company is situated in Cambridge, Massachusetts and has raised $4.3m in this first round of funding. Michael Shanahan, managing partner at Egan-Managed Capital, and Rich Levandov, general partner at Masthead Venture Partners, have joined Nexaweb's board of directors.

Foundation Capital commits to Jasper's series B
Foundation Capital has provided $5.5m in venture capital for Jasper Design Automation, a company developing software that provides mathematical proof that circuit designs meet their specifications. The series B round of financing will be devoted to expanding its engineering and sales staff. Foundation Capital was the sole investor in this round, although Cambrian Ventures invested in a previous round of financing for Jasper.

Sigma Partners funds TradeBeam
Sigma Partners has invested in a round of venture capital financing for TradeBeam, a San Mateo, California-based company that develops global trade management software solutions. The company raised $9.85m in this round, the proceeds of which it will use to expand its sales, increase its development and develop its product range. Enterprise Partners Venture Capital and Silicon Valley BancVentures also participated in the transaction.

BA Venture Partners invests in Biz360
BA Venture Partners has invested in a series C round of equity financing for Biz360, a San Mateo, California-based company that provides market intelligence software and services. The company secured $10.5m from new investor BA Venture Partners and existing investors Adobe Ventures, Granite Ventures and Foundation Capital. The company will use the funding to grow the business, increase its sales efforts, expand its distribution channels, and to increase its number of staff.

Worldview Technology Partners finances Cemaphore's first round
Worldview Technology Partners has participated in a first round of financing for Cemaphore Systems, a Palo Alto, California-based company that develops messaging system management software products. Its range is designed to enhance current e-mail and messaging applications. The company's first round of funding totalled $8m and will be used to advance its e-mail messaging product development effort and to expand its engineering, sales and marketing teams across the US. Mayfield, Worldview Technology Partners and vSpring Capital provided the capital, alongside a number of individual investors.

Networking

Liberty Partners commits funds to NetQoS
Liberty Partners has invested capital in NetQoS, a provider of network performance products and services. Situated in Austin, Texas, the company raised $5m in this third round of funding with Liberty Partners as the sole investor. The proceeds from the round will be used for sales, marketing and product development. NetQoS has raised a total of $21m in venture capital to date, according to VentureWire.

Advanced Technology Ventures invests in Black Pearl
Advanced Technology Ventures has invested in Black Pearl, a provider of software for enterprise decision management. The company, which is based in Mountain View, California, has been acquired by OneChannel, a provider of business intelligence software. The new company will trade under the Black Pearl name. The company secured $5m in series D financing, the proceeds of which it will use for product development.

Ascend Technology Ventures provides capital for Netilla
Ascend Technology Ventures has provided capital for a round of equity financing for Netilla Networks, a Somerset, New Jersey-based provider of network appliances that enable remote users to securely connect to their corporate networks. Netilla raised $6m in this series C financing, which it will use for product development, operations, sales and marketing. Ascend Technology Ventures led the round, which included participation from Mid-Atlantic Venture Funds, Early Stage Enterprises, New Jersey Technology Council Venture Fund and the Telecommunications Development Fund. Netilla has raised $17m to date.

Trident Capital and US Venture Partners back MegaPath
Trident Capital and US Venture Partners have backed a round of equity financing for MegaPath Networks, a Pleasanton, California-based company that provides broadband access and network services for businesses. MegaPath raised $4m in this fifth round of financing. Trident Capital and US Venture Partners were existing investors in the company, while new investor Centre Palisades and individuals also participated. The proceeds from the round will be used for acquisitions and product development.

Energy

Cornell Capital Partners invests in Energy & Engine Technology Corp
Cornell Capital Partners has invested in a round of venture capital financing for Energy & Engine Technology Corp, a Plano, Texas-based provider of power generation for vehicles. The company secured $3.5m from Cornell, according to Private Equity Week.

Exits

Software

BrightSpark exits Think Dynamics
US venture capital firm BrightSpark has realised its investment in Think Dynamics, a Toronto, Canada-based software developer. Think Dynamics was acquired by IBM and will immediately be integrated into its software group. The terms of the transaction were not disclosed.

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.