daveliu.com Blog

November 18, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 7:21 pm

ProtoStar Ltd., a Bermuda-based acquirer and operator of geostationary satellites for DTH satellite television in the Asia-Pacific region, has raised $50 million in third-round venture capital funding. No investor information was disclosed for the deal, which follows a recent $40 million Series B round that included VantagePoint Venture Partners, New Enterprise Associates and RedShift Ventures. The company also said that it has secured $160 million in senior secured convertible notes placed by Jefferies & Company. http://www.protostarsat.com

Gather.com, a Boston-based social content/networking startup, has raised $10 million in second-round funding from Pilot House Ventures, Hearst Corp. and McGraw Hill Cos. http://www.gather.com

RedBaby, an online vendor of baby and mother care products in China , reportedly has raised $10 million in VC funding from NetScreen and New Enterprise Associates. http://www.redbaby.com.cn

General Atlantic has completed its acquisition of a 52% interest in Emdeon Business Services from Emdeon Corp. (Nasdaq: HLTH). The deal is valued at approximately $1.2 billion, including $319 million in equity from General Atlantic and $925 million in bank debt. Emdeon Business Services is a provider of revenue cycle management and clinical communications solutions that enables payers, providers and patients to improve healthcare business processes. http://www.generalatlantic.com  http://www.emdeon.com

Yahoo Inc. (Nasdaq: YHOO) has agreed to buy Bix.com, a Palo Alto, Calif.-based provider of online contests. No financial terms were disclosed. Bix was founded earlier this year as 900 Seconds, and raised around $6.75 million in funding from Sutter Hill Ventures, Trinity Ventures and Stanford University . http://www.yahoo.com  http://www.bix.com

Liquid Computing Inc., an Ottawa-based developer of scalable high-performance computing solutions, has raised US $27.7 million in Series B funding. Newbury Ventures led the deal, and was joined by return backers Vengrowth, ATA Ventures, Business Development Bank of Canada, Export Development Canada, Axis Investment Fund Inc. and Dr. Adam Chowaniec. http://www.liquidcomputing.com

Qihoo, a Beijing-based provider of search solutions for Internet and mobile platforms, has raised $25 million in Series B funding. Highland Capital Partners led the deal, and was joined by Redpoint Ventures and return backers Sequoia Capital China, CDH, Matrix Partners and IDG VC. http://www.qihoo.com

QSecure Inc., a Palo Alto, Calif.-based provider of credit card authentication solutions, has secured around $10 million of a $12 million Series B round, according to a regulatory filing. Backers include Fortune Venture Capital, SG Cowen, Media Technology Ventures and Worldview Technology Partners. http://www.qsecure.com

SeeSaw Networks, a Chicago-based out-of-home digital media company, has raised $10 million in Series A funding from Sutter Hill Ventures. http://www.seesawnetworks.com

LifeLock, a Tempe, Ariz.-based identity theft prevention company, has raised $6 million in first-round funding from Bessemer Venture Partners. http://www.lifelock.com

Polar Rose AB, a Sweden-based developer of automatic facial recognition with 3D modeling for visual search applications, has raised around $5.1 million in Series A funding from Nordic Venture Partners. http://www.polarrose.com

Venafi Inc., a Draper, Utah-based provider of enterprise encryption management solutions, has raised $5 million in Series B funding. Foundation Capital led the deal, and was joined by return backers Origin Partners and UV Partners. http://www.venafi.com

My Wines Direct Inc., a Napa, Calif.-based online wine distributor, has raised around $4.2 million in Series A funding, according to a regulatory filing. Backers include Consor Capital. http://www.mywinesdirect.com

Yuzoz Ltd., an UK-based developer of a random number generator using data derived from space phenomena such as solar flares, the Northern lights, and the movement of the clouds on Venus, has received $500,000 in first-round funding from DesCap. http://www.yucoz.com

Intransa Inc., a San Jose, Calif.-based provider of network-centric IP storage solutions, has raised an undisclosed amount of new venture capital. Guggenheim Venture Partners led the deal, and was joined by return backers Menlo Ventures and U.S. Venture Partners. The company previously had raised around $84 million over five round of funding. http://www.intransa.com

Vendio Services Inc., a San Mateo, Calif.-based provider of transactional management services for online merchants, has completed its acquisition of a majority stake in Andale Inc., a Mountain View, Calif.–based provider of listing management and research services for sellers on eBay. No financial terms were disclosed. Vendio has raised around $40 million in VC funding since its 1999 inception, from firms like Sequoia Capital, Technology Crossover Ventures, CMGI @Ventures, MVC Capital, Angel Investors, Argus Capital Group and Stanford University . Andale had raised nearly $64 million in total VC funding since its 1999 inception, from firms like Accel Partners, Mohr, Davidow Ventures, Oak Hill Capital Partners, Texas Pacific Group and Bowman Capital. http://www.vendio.com http://www.andale.com

Mobile2win, a China-based provider of mobile value-added services, reportedly has raised around $15 million in venture funding from Norwest Venture Partners and Nexus India Capital.

A10 Networks Inc., a San Jose, Calif.-based developer of an enterprise IP-to-ID product, has raised $9 million in Series B funding. Enspire Capital, H&Q Asia Pacific and Miven Ventures were joined by return backers Triton Ventures and Harbinger Venture. http://www.a10networks.com

Quintura Inc., an Alexandria, Va.-based developer of a “see and find” visual search engine, has raised an undisclosed amount of VC funding from Mangrove Capital Partners, ABRT Venture Fund and the partners of OpenView Venture Partners. http://www.quintura.com

GTCR has formed QFour Digital Inc., a Santa Barbara, Calif.-based acquisition platform focused on tech-based businesses in the online advertising and marketing services industry. Jeffrey Pullen, former COO of ValueClick, will serve as QFour’s CEO. http://www.gtcr.com http://www.qfourdigitalfund.com

Salary.com Inc., a Waltham, Mass.-based provider of on-demand compensation management solutions, has filed for a $50 million IPO. It plans to trade on the Nasdaq under ticker symbol SLRY, with Thomas Weisel Partners and William Blair & Co. serving as co-lead underwriters. It raised around $4 million in VC funding from groups like Lyric Capital in 2000 and 2001. http://www.salary.com

HomeAway Inc., an Austin, Texas-based operator of an online vacation rentals website, has raised $100 million in second-round equity funding. It also secured $60 million in debt financing. Existing shareholders Austin Ventures and Redpoint Ventures were joined by new backers American Capital Strategies, Institutional Venture Partners and Trident Capital. HomeAway used some of the proceeds to acquire rival VRBO.com. http://www.homeaway.com

ClairMail Inc., a Novato, Calif.-based provider of mobile phone-based customer interaction solutions, has raised $12 million in Series B funding. Jafco Ventures led the deal, and was joined by return backers Norwest Venture Partners and Outlook Ventures. http://www.clairmail.com

Pluck Inc., an Austin, Texas-based provider of social media solutions for online publishers, has raised $7 million in Series B-1 funding. Reuters was joined on the deal by return backers Austin Ventures and Mayfield. It nowhas raised around $17 million in total VC funding since its 2003 inception. http://www.pluck.com

Etology Inc., a Foster City, Calif.-based operator of an online advertising marketplace, has raised $4 million in Series A funding, according to a regulatory filing. Backers include Mustang Ventures, DG Incubation and CGM Marketing.

Motorola Inc. (NYSE: MOT) has agreed to acquire Good Technology Inc., a Santa Clara, Calif.-based provider of enterprise mobile computing software and services. No financial terms were disclosed. Good Technology has raised around $245 million in VC funding from firms like Kleiner Perkins Caufield & Byers, Benchmark Capital, Advanced Equities Capital, Avalon Ventures, BA Venture Partners, Broadview Capital Partners, CrossBridge Venture Partners, Crosslink Capital, Rembrandt Venture Partners and Visa. http://www.motorola.com http://www.good.com

Brightcove Inc., a Cambridge, Mass.-based IP video company, is looking to raise around $55 million in third-round funding at a pre-money valuation of around $170 million, according to GigaOm. The company already has raised around $20 million in funding from Accel Partners, General Catalyst Partners, AOL, Allen & Co., Hearst Corp. and InterActive Partners. http://www.brightcove.com

BlackArrow Inc., a provider of video ad insertion solutions, has raised a total of $14.75 million in VC funding, according to VentureBeat. Backers include Intel Capital, Mayfield, Polaris Venture Partners and Comcast. The company has offices in both New York and San Mateo , California . http://www.blackarrow.tv

Scali Inc., a Marlborough, Mass.-based provider of clustering solutions for datacenters, has raised $3.5 million in Series A recap funding from existing shareholders Atlas Venture and Four Seasons Venture. The company previously had raised around $20 million since its 1997 inception. http://www.scali.com

Network Appliance Inc. (Nasdaq: NTAP) has agreed to acquire Topio Inc., a Santa Clara, Calif.–based provider of data replication and disaster recovery software, for $160 million in cash. Topio has raised nearly $30 million in VC funding since its 2001 inception, from firms like Sequoia Capital, Sigma Partners and Star Ventures. http://www.netapp.com  http://www.topio.com

Turn Inc., a San Mateo, Calif.-based online automatic-targeting advertising network, has raised $18 million. Backers include Norwest Venture Partners, Trident Capital and Shasta Ventures. The company held a first close back in early 2005. http://www.turn.com

Dilithium Networks, a Petaluma, Calif.-based provider of converged video solutions for the broadband and wireless markets, has secured $16.77 million of a $25 million Series D round, according to a regulatory filing. Shareholders include U.S. Venture Partners, Motorola Ventures, Deutsche Bank Capital and CM Capital. http://www.dilithiumnetworks.com

United Information Technology Ltd., a Beijing-based provider of IT management and storage solutions in China , has raised $10.5 million in private equity funding from Orchid Asia Group Management. http://www.uit.com.cn

Zvents Inc., a San Mateo, Calif.-based social networking company focused on local events, has raised $7 million in first-round funding. VantagePoint Venture Partners led the deal, and was joined by Red Rock Ventures and NetService Ventures. http://www.zvents.com

Clear2Pay NV, a Belgian provider of payment software solutions for financial institutions, has raised Euro 2 million in new venture capital from Iris Capital. In addition, Iris purchased Euro 1 million in existing equity from undisclosed shareholders. Clear2Pay raised a Euro 15.7 million round earlier this year from GIMV and AGF Private Equity. http://www.clear2pay.com

Agiliance Inc., a Mountain View, Calif.-based provider of security risk and compliance management solutions, said that Intel Capital has joined its Series B funding round. The company announced last month that it had raised $6.5 million from Walden International and Red Rock Ventures. No word on how much Intel put in. http://www.agiliance.com

Vendavo Corp., a Palo Alto, Calif.-based provider of B2B price management solutions, has raised an undisclosed amount of strategic funding from SAP Ventures. The company previously had raised around $61 million since its 1998 inception, from firms like DCM-Doll Capital Management, Sigma Partners, Split Rock/St. Paul Venture Capital, InterWest Partners and spectrum Equity Investors. http://www.vendavo.com

Double-Take Software Inc., a Southborough, Mass.-based provider of software for reducing downtime of business-critical systems, has set its proposed IPO terms to 7.5 million common shares being offered at between $9 and $11 per share. It plans to trade on the Nasdaq under ticker symbol DBTK, with Cowen & Co. and Thomas Weisel Partners serving as co-lead underwriters. Shareholders include ABS Capital Partners, J&W Seligman & Co. and Lake Street Capital. http://www.nsisoftware.com

MediaWhiz, a provider of performance-based online marketing services, has acquired Cincinnati-based Text Link Ads. No financial terms were disclosed for the deal , which was partially financed by existing MediaWhiz investor Lake Capital. http://www.mediawhiz.com

AOL has acquired The Relegence Corp., a New York-based financial news and information search technology company. No financial terms were disclosed. Relegence had raised over $13 million in VC funding from Hudson Venture Partners, Phoenix Partners, Broadband Venture Partners and Entertainment Media Ventures. http://www.aol.com   www.relegence.com

Access 360 Media (f.k.a. Access Retail Entertainment), a Culver City, Calif.–based in-store entertainment network targeting young adult consumers, has raised $4.25 million in Series A funding from Bessemer Venture Partners. The deal closed back in April. http://www.access360media.com

SodaHead Inc., a Santa Clarita, Calif.-based social networking startup, has raised $4.25 million in Series A funding led by Mohr Davidow Ventures, according to a regulatory filing. http://www.sodahead.com

FanLib Inc., a Hollywood, Calif.-based provider of online user-generated entertainment content, has raised around $3 million in Series A funding led by H.I.G. Ventures, according to a regulatory filing. http://www.fanlib.com

Gecko Audio Inc., a Palo Alto, Calif.-based developer of network audio products, has raised $3 million in Series A funding led by Technology Venture Partners ( Australia ), according to a regulatory filing. http://www.geckoaudio.com

Verient Inc., a Cupertino, Calif.-based stealth-mode tech startup, has secured $2.13 million of an $8.45 million Series A round led by Global Catalyst Partners, according to a regulatory filing. http://www.verient.com

Wavesat, a Canadian supplier of WiMax chipsets and software, has raised an undisclosed amount of strategic funding led by SK Telecom. VentureWire puts the total round at US$6 million ($3.8m from SK Telecom), with return backers including BDC Venture Capital and Monet Capital. http://www.wavesat.com

Topix.net, a Palo Alto, Calif.-based operator of online news communities, has raised $15 million in second-round funding. Return backers include Gannett Co., The McClatchy Co. and Tribune Co. The deal had a $72 million pre-money valuation, according to VentureWire. http://www.topix.net

Powerset Inc., a San Francisco-based developer of a natural language search engine, has raised $12.5 million in Series A funding. Foundation Capital and The Founders Fund co-led the deal, and were joined by undisclosed angel backers. http://www.powerset.com

World of Good Inc., a Berkley, Calif.-based provider of “fair trade” globally-sourced goods, has raised $4 million in Series B funding. Backers include Draper Fisher Jurvetson, Omidyar Network and Cliff Higgerson. http://www.worldofgood.com

Stockholm Interactive, a Sweden-based provider of print ad and packaging services, has raised $3 million in Series A funding led by Atlas Venture, according to a regulatory filing. http://www.stockholminteractive.com

Wupima Inc., a Reston , Va.-based mobile content startup, has secured around $2.72 million of a $3 million Series A round, according to a regulatory filing. IDG-Accel China Growth Fund led the deal.

Bunchball Inc., a Redwood City, Calif.-based provider of online multi-player gaming, has raised around $2 million in Series A funding, according to a regulatory filing. Backers include Adobe Systems and Granite Ventures. http://www.bunchball.com

Austin Ventures has sponsored a recapitalization of CreditCards.com, an online destination for consumers to search, compare, and apply for credit cards. No financial terms were disclosed. In related news, former Bankrate CEO Elisabeth DeMarse was named company CEO. American Capital Strategies and CreditCard.com founder Dan Smith also participated in the recap. http://www.creditcards.com

Diamond Castle Holdings has agreed to acquire customer relationship services company PRC LLC from IAC/InterActiveCorp (Nasdaq: IACI). No financial terms were disclosed for the deal, which was done in partnership with PRC management. http://www.dchold.com  http://www.prcnet.com

Warburg Pincus has reached an agreement with First Data International (NYSE: FDC) to buy German transaction processing company EasyCash. No financial terms were disclosed. When First Data acquired GZS Gesellschaft für Zahlungssysteme GmbH in June, the FCO stipulated that GZS divest EasyCash to a third party as part of the merger control clearance. http://www.warburgpincus.com http://www.firstdata.com

Ugenie, a Palo Alto, Calif.-based online shopping engine, has raised $5 million in first-round funding from BlueRun Ventures and Sierra Ventures. http://www.ugenie.com

PBWiki, a San Bruno, Calif.-based wiki hosting company, has raised $350,000 from angel group Seraph and Ron Conway, according to VentureBeat. http://www.pbwiki.com

U.S. Auto Parts Network Inc., a Carson, Calif.-based provider of aftermarket auto parts, has filed for a $100 million IPO. It plans to trade on the Nasdaq under ticker symbol PRTS, with RBC Capital Markets and Thomas Weisel Partners serving as co-lead underwriters. Oak Investment Partners holds a 30.4% pre-IPO stake. http://www.usautoparts.net

The HealthCentral Network, an Arlington, Va.-based online provider of health and wellness information, has acquired The FoodFit Co., operator of a nutrition and active lifestyle website. No financial terms were disclosed. HealthCentral Network has raised around $36 million in VC funding from Carlyle Venture Partners, Polaris Venture Partners and Sequoia Capital. FoodFit was backed by Walker Ventures. www.thehealthcentralnetwork.com

Oracle Corp. (Nasdaq: ORCL) has acquired San Francisco-based revenue and operations management software company SPL WorldGgroup from GFI Energy Ventures. No financial terms were disclosed. http://www.oracle.com  http://www.splwg.com

Nomura Holdings Inc. has agreed to acquire electronic brokerage Instinet Inc. from Silver Lake Partners and company management. No financial terms were disclosed, although various media reports put the price at around $1 billion. Silver Lake paid just over $200 million last year for a majority stake in Instinet from the Nasdaq Stock Market, which had just acquired the assets from Reuters (Nasdaq paid $1.88 billion for the entire Instinet Group Inc., but spun off the institutional brokerage biz to Silver Lake ). http://www.nomura.com

MobiTV Inc., an Emeryville, Calif.-based provider of mobile and broadband television and music services, has raised $30 million in additional Series C funding. The total round now comes in at $100 million, with a post-money valuation in excess of $400 million. Adobe Systems and Hearst Corp. came in as new backers, while existing shareholders include Oak Investment Partners, Menlo Ventures, Redpoint Ventures and Gefinor Ventures. http://www.mobitv.com

EMC Corp. (NYSE: EMC) has agreed to acquire Avamar Technologies Inc., an Irvine, Calif.-based provider of data backup and recovery solutions. The deal is valued at approximately $165 million in cash, and is expected to close within the next 30 days. Avamar has raised around $40 million in VC funding from firms like CMGI @Ventures, Benchmark Capital, Goldman Sachs, Morgan Stanley Venture Partners and Lightspeed Venture Partners. http://www.emc.com  http://www.avamar.com

NebuAd Inc., a Sausalito, Calif.-based provider of online advertising solutions, has raised around $6.1 million in Series A funding led by Menlo Ventures, according to a regulatory filing. http://www.nebuad.com

Mint Software Inc., a Sunnyvale, Calif.-based provider of online personal finance management solutions, has raised $750,000, according to a regulatory filing. Backers include First Round Capital, Felicis Ventures and Ron Conway. http://www.mymint.com

Dice Holdings Inc., an Urbandale, Iowa–based provider of specialized career sites and career fairs, has completed its purchase of eFinancialGroup, a UK-based operator of career site for financial professionals. No financial terms were disclosed. Dice has been owned by General Atlantic and Quadrangle Group since August 2005. http://www.dice.com

HealthMedia Inc., an Ann Arbor, Mich.-based provider of online behavior change interventions, has acquired MySelfHelp.com, a provider of online behavioral health interventions, including programs for depression and insomnia. No financial terms were disclosed. HealthMedia has raised over $13 million in VC funding from firms like Chrysalis Ventures, Avalon Ventures, the Princeton Fund and Arboretum Ventures. http://www.healthmedia.com www.myselfhelp.com

KnowNow Inc., a Sunnyvale, Calif.–based provider of enterprise-class Web 2.0 solutions, has raised $13 million. RSS Investors led the deal, and was joined by Presidio Ventures and return backers Kleiner Perkins Caufield & Byers, Levensohn Venture Partners and Palomar Ventures. KnowNow has raised over $50 million in total VC funding since its 2000 inception. In other company news, KnowNow is expected to make a major partnership announcement next week. http://www.knownow.com

Sulekha.com, an India-based social media and local commerce website, has raised $10 million in Series A funding from Norwest Venture Partners. http://www.Sulekha.com

SideStep Inc., a Santa Clara, Calif.-based online comparison shopping site for travel, has acquired TravelPost.com, a San Mateo, Calif.–based website for site for hotel reviews and ratings. No financial terms were disclosed. SideStep has raised more than $17 million in VC funding from Trident Capital, PAR Capital and individuals. TravelPost.com has raised some seed funding from Amicus and Arba Seed Inv*stment Group. http://www.sidestep.com  http://www.travelpost.com

TA Associates has completed a €153 million leveraged buyout of eDreams, a Barcelona , Spain-based online travel company. TA was joined by company management, while sellers included 3i Group, Apax Partners, Atlas Venture and DCM-Doll Capital Management. http://www.ta.com   http://www.edreams.com

Spot Runner Inc., a Los Angeles-based Internet ad agency for local businesses, has raised $40 million in Series C funding. New backers include WPP, CBS Corp., Interpublic Group, Allen & Co. Tudor Inv*stment Corp., media executive Lachlan Murdoch and financier Vivi Nevo. Return backers include Index Ventures and Battery Ventures. http://www.spotrunner.com

Rhythm NewMedia Inc., a Mountain View, Calif.-based provider of mobile video advertising insertion, has raised $18 million in Series B funding. Carlyle Venture Partners led the deal, and was joined by return backers Lightspeed Venture Partners, Morgenthaler Ventures and Rembrandt Venture Partners. http://www.rhythmnewmedia.com

XenSource Inc., a Palo Alto, Calif.-based provider of open-source virtualization solutions, has secured $15 million of a $21 million Series C round, according to a regulatory filing. Return backers include Accel Partners, Kleiner Perkins Caufield & Byers, Radar Partners and Sevin Rosen Funds. XenSource previously had raised around $23 million. http://www.xensource.com

Go2 Directory Systems, an Irvine, Calif.-based mobile directories company, has raised $13 million in new VC funding from Geosign Corp., according to VentureWire. This is the company’s first outside capital infusion since a 2002 management buyout sponsored by Hancock. http://www.go2.com

Thumbplay Inc., a New York-based online retailer of mobile entertainment content, has raised $10 million in Series C funding. Bain Capital Ventures led the deal, and was joined by return backers SoftBank Capital and i-Hatch Ventures. Thumbplay also secured a $5 million line of credit with Silicon Valley Bank. http://www.thumbplay.com

Shop.com, a Monterey, Calif.-based provider of private label ecommerce shopping solutions, has raised around $10 million in additional Series A-1 funding, according to a regulatory filing. The round total now stands at $35.65 million, with Oak Investment Partners serving as deal lead and Pagemill Partners serving as placement agent. http://www.shop.com

Echopass Corp., a Pleasanton, Calif.-based provider of call and contact center solutions, has secured $6.06 million of a $9.73 million Series E round, according to a regulatory filing. Shareholders include Advanced Equities, Canaan Partners, New Enterprise Associates and Outlook Ventures. http://www.echopass.com

uShip Inc., an Austin, Texas-based provider of an online marketplace for moving and shipping, has raised $5.1 million in Series B funding, according to a regulatory filing. DAG Ventures was joined by return backer Benchmark Capital. http://www.uship.com

Top10 Media Inc., a Cambridge, Mass.–based operator of user-generated online communities, has raised $3.5 million in Series A funding and acquired blog aggregator Blogniscient.com, according to VentureWire. Highland Capital Partners led the deal, and was joined by return backer Schooner Capital. http://www.top10sources.com http://www.blogscient.com

Austin Ventures has acquired and recapped All Star Directories, a Seattle–based publisher of online education directories. No financial terms were disclosed. Austin said that the deal resulted from a partnership with entrepreneur-in-residence Elisabeth DeMarse (former BankRate CEO), while All Star Directories was advised by media banker DeSilva + Phillips. http://www.austinventures.com http://www.allstardirectories.com

eBuddy, an Amsterdam-based provider of Web-based messaging, has raised €5 million in Series A funding from Lowland Capital Partners. http://www.ebuddy.com

Eyespot Corp., a San Diego-based provider of video editing and mashup applications, has raised $3.7 million in Series A funding. Gabriel Venture Partners led the deal, and was joined by Express Ventures and executives from MP3.com and DivX. http://www.eyespot.com

GotVoice Inc., a Kirkland, Wash.–based provider of voice messaging solutions, has raised $3 million in first-round funding from Ignition Partners and Second Avenue Partners. http://www.gotvoice.com

Luxul Corp., a North Salt Lake, Utah-based wireless networking company, has secured $554,000 of a $1 million Series C round from Canopy Ventures, according to a regulatory filing. http://www.luxul.net

SourceFire Inc., a Columbia, Md.-based provider of intrusion prevention and real-time network awareness solutions, has filed for a $75 million IPO. It plans to trade on the Nasdaq under ticker symbol FIRE, with Morgan Stanley and Lehman Brothers serving as co-lead underwriters. SourceFire has raised around $64 million in VC funding from firms like Sierra Ventures, New Enterprise Associates, Inflection Point Ventures, Core Capital Partners and Sequoia Capital. http://www.sourcefire.com

Oak Pacific Interactive, a China-based provider of Internet products, has agreed to buy Xiaonei.com, a Chinese social networking site for college students, according to Red Herring. Oak Pacific plans to merge Xiaonei.com with existing asset 5Q. No financial terms were disclosed. Oak Pacific has raised nearly $60 million in VC funding from Accel Partners, DCM-Doll Capital Management, General Atlantic, Legend Capital and Technology Crossover Ventures. http://www.oakpacific.com  http://www.xiaonei.com

Zoom Systems, a San Francisco-based developer of automated retail solutions, has raised $35 million in Series D funding. Motorola Ventures was joined by return backers Goldman Sachs and Sierra Ventures. http://www.zoomsystems.com

Synacor, a Buffalo, N.Y.-based provider of online content and technology solutions for broadband and Internet service providers, has raised $17 million in Series C funding. North Atlantic Capital led the deal, and was joined by Mitsui & Co. and return backers Crystal Ventures, Advantage Capital Partners, Walden International, Intel Capital and Rand Capital. http://www.synacor.com

Leonard Green & Partners is nearing a deal to buy Irvine, Calif.-based aftermarket motorcycle parts company Motorsport Aftermarket Group Inc. from Duff Ackerman & Goodrich, according to LBOWire.

Digg Inc., a San Francisco-based provider of online news/blog rating services, entered into possible acquisition talks with such suitors as News Corp., according to Tech Crunch. A deal seems unlikely, however, as none of the offers reached a $150 million bottom threshold. The result is that Digg likely will seek additional VC funding. It already has raised around $3 million from firms like Greylock and Omidyar Network. http://www.digg.com

Tablus, a San Mateo, Calif.-based content protection service provider, raised $16 million in Series B funding from Trident Capital and Menlo Ventures. Trident Capital’s Peter Meekin will join the company’s board of directors. http://www.tablus.com

Skyrider, a Mountain View, Calif.-based peer-to-peer networking platform provider, raised $12 million in Series C funding. ComVentures led the round, which included previous investors Sequoia Capital and Charles River Venture Partners. The company has raised a total of $20 million. http://www.skyrider.com

GetWellNetwork, a Bethesda, Md.-based provider of software, hardware and other services to aid healthcare providers care for patients, closed a $9 million Series B round of funding. Valhalla Partners led the round, which included previous investors The Grosvenor Funds, Point Judith Capital, Long River Ventures, Village Ventures and Tall Oaks Capital. http://www.getwellnetwork.com

DeviceVM, a San Jose, Calif.-based software developer that uses virtualization technology, raised more than $10 million from Storm Ventures, DFJ DragonFund China, Tim Draper, AsusTek Computer, iD Innovation, Harbinger Ventures and strategic and angel investors. http://www.devicevm.com

Edgeio, a Menlo Park, Calif.-based online classified ad service developer, has raised $5 million in a first round of funding led by Intel Capital and including Transcosmos, according to VentureBeat.

Neocase, a San Francisco-based provider of customer service software, raised $6.5 million in its second round of venture funding. Iris Capital led the round, which included Caisse des Depots et Consignations (CDC) and Supporter Group. The company will use the new capital to expand internationally. http://www.neocasesoftware.com

Jingle Networks Inc., a Menlo Park, Calif.–based operator of a national consumer telephone directory assistance service, has raised $30 million in Series C funding. Goldman Sachs and Hearst Corp. co-led the deal, and were joined by return backers Comcast Interactive Capital, IDG Ventures Boston, Liberty Associated Partners, First Round Capital and Lead Dog Ventures. http://www.free411.com

Adobe Systems Inc. (Nasdaq: ADBE) has acquired Serious Magic Inc., a Folsom, Calif.-based provider of video software communications tools. No financial terms were disclosed. Serious Magic had raised VC funding from Mayfield. http://www.adobe.com  http://www.seriousmagic.com

Right Media Inc., a New York-based online advertising marketplace, has raised $45 million in Series B funding. Yahoo Inc. led the deal in exchange for a 20% ownership stake, while return backer Redpoint Ventures also participated. http://www.rightmedia.com

Vinfolio Inc., a San Francisco-based wine retailer and collector services company, has raised $1.6 million from individuals like Jean Michel Valette (former chairman of Robert Mondavi Winery) and Colin Lind (managing partner of Blum Capital Partners). http://www.vinfolio.com  

October 18, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 4:54 am

Validity Sensors Inc., a San Jose, Calif.-based biometric company that makes fingerprint sensors, has raised $20 million in fourth-round funding. TeleSoft Partners led the deal, and was joined by Qualcomm Ventures, VentureTech Alliance, Ram Shiram, Marc Benioff (SalesForce.com CEO) and Atiq Raza (Taza Microelectronics CEO). The company has now raised $55 million in total VC funding since 2002. http://www.validityinc.com/

AirWalk Communications Inc., a Richardson, Texas-based provider of IP radio access network infrastructure, has raised $15 million in second-round VC funding. Sevin Rosen Funds led the deal, and was joined by return backers TLVentures, Alta Berkeley and Duchossois Technology Partners. http://www.airwalkcom.com/

OB10, a UK-based e-invoicing company, has raised £7.3 million in new VC funding from existing shareholder FF&P Private Equity. http://www.ob10.com/

Sugar Publishing, a San Francisco-based blog publisher, has raised around $5 million in VC funding from Sequoia Capital. News of the deal first appeared here, with GigaOm and TechCrunch reporting the specific dollar amount. http://www.popsugar.com/

eCourier, a UK-based express courier company, has raised £2 million in venture capital funding from Logispring. http://www.ecourier.co.uk/

GuidePoint Systems, a Pontiac, Mich.-based provider of telematics solutions for the automotive aftermarket, has raised an undisclosed amount of second-round private equity funding from Plymouth Venture Partners. It also secured a new senior credit facility from Comerica Bank. http://www.guidepointsystems.com/

Golden Gate Capital has agreed to acquire Sierra Systems Group Inc. (TSX: SSG) for Cnd$9.25 per share, or approximately Cnd$93.2 million. Sierra Systems is a Vancouver–based provider of IT and business consulting services to public and private organizations in North America . http://www.sierrasystems.com/

Marlin Equity Partners has closed on its acquisition of XKO Software Ltd, a unit of XKO Group PLC that provides ERP software to SMEs in the building supply chain, wholesale distribution and other specialist product markets. The deal was valued at up to £15 million. www.marlinequity.com http://www.xko.co.uk/

Garnett & Helfrich Capital has acquired a majority interest in Celunite Inc., a Sunnyvale, Calif.–based provider of open-mobile platform software. No financial terms were disclosed. www.celunite.com DynTek Inc. (OTC BB: DYNK) has acquired the operating assets of TekConnect Corp., a Cherry Hill, N.J.-based tech integration and consulting firm focused on the K-12 education market. No financial terms were disclosed, except that TekConnect has 12-month trailing revenue of approximately $7.1 million. TekConnect had raised around $5 million in VC funding, including a $2 million round from Greenlight Private Equity Partners. http://www.dyntek.com/ http://www.tekconnect.com/

The Carlyle Group and Providence Equity Partners have agreed to acquire Open Solutions Inc. (Nasdaq: OPEN), a Glastonbury, Conn.–based provider of enabling technologies for financial institutions, for $38 per share. The total deal is valued at over $1.3 billion, including the assumption of debt. http://www.opensolutions.com/

Fat Spaniel Technologies Inc., a San Jose, Calif.–based provider of critical IT infrastructure for the distributed generation industry, has raised $7 million in Series A funding. DFJ Element led the deal, and was joined by Chrysalix Energy. http://www.fatspaniel.com/

Empruntis.com, a France-based online broker of financial products like mortgages and insurance, has sold a 40% ownership stake to 3i Group for €32 million. http://www.empruntis.com/ http://www.3i.com/

Verizon Communications (NYSE: VZ) is likely to spin off its directories business instead of selling it, according to The New York Times. The pending decision is based on unfavorable tax implications of a sale. http://www.verizon.com/

Steelpoint Capital Partners has acquired The Internet Marketing Center Inc., a Blaine, Wash.-based provider of Internet marketing information, software and consulting services for small and mid-sized businesses. No financial terms were disclosed, except that IMC has over $20 million in annual revenue. http://www.steelpointcap.com%20www.theinternetmarketingcenter.com/

Inflexion Private Equity has sponsored a £24 million management buyout of Parasol Ltd., a UK-based provider of tax and regulatory services for self-employed workers and independent contractors. Inflexion provided £9.4 million in equity, while HSBC provided a 12 million leverage package. http://www.inflexion.com/ http://www.parasolit.co.uk/

Microsoft Corp. (Nasdaq: MSFT) has acquired Colloquis Inc., a New York–based provider of conversational online business solutions that feature natural language-processing technology. No financial terms were disclosed. Colloquis had raised VC funding from firms like Dawntreader Ventures and Reuters. http://www.microsoft.com/ http://www.colloquis.com/

Reflex Security Inc., an Atlanta–based provider of network intrusion prevention solutions, has raised $12 million in Series B funding. Spencer Trask Ventures led the deal, and was joined by RFT Inv*stment Co. http://www.reflexsecurity.com/

Guruji.com, an Internet search engine focused on the Indian market, has raised $7 million from Sequoia Capital India. http://www.guruji.com/

BillTrust, a Windsor, N.J.-based provider of outsourced billing solutions, has raised $4 million from Edison Venture Fund. http://www.billtrust.com/  

Circle 1 Network Inc., a Milwaukee-based operator of educational and entertainment websites for children, has raised $1.3 million in VC funding from GCI and local angels. http://www.circleonenetwork.com/

Greystripe Inc., a San Francisco-based distributor of ad-supported mobile games and applications, has raised $1.2 million in Series A funding from Monitor Ventures, Incubic Venture Capital and WS Investments. http://www.greystripe.com/

eHealth Inc., a Mountain View, Calif.-based online health insurance provider, priced five million common shares at $14 per share ($10-$12 range), for an IPO take of approximately $70 million. It will trade on the Nasdaq under ticker symbol EHTH, while Morgan Stanley and Merrill Lynch served as co-lead underwriters. The company had raised around $86 million in VC funding, from firms like Sprout Group, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, QuestMark Partners and Lake Street Partners. http://www.ehealthinsurance.com/

Abode Systems Inc. (Nasdaq: ADBE) has acquired the vector graphics technology developed by Actimagine, a France–based developer of video and interactive vector graphic software. No financial terms were disclosed. Actimagine is backed by GRP Partners. http://www.adobe.com/ http://www.actimagine.com/

Zebra Imaging Inc., an Austin, Texas–based developer of 3D holographic visualization tools, has raised $5.93 million in Series C funding, according to a regulatory filing. Backers include SAIC Venture Capital Corp., Sierra Ventures, Nuevo Private Equities, Ford Motor Co. and Voyager Capital. http://www.zebraimaging.com/

Newstep Networks Inc., a Toronto-based provider of convergence solutions for carriers and enterprises, has raised US$2.86 million in new Series B funding, according to a regulatory filing. Shareholders include Newbury Ventures, Bell Canada , BDC Capital and Vengrowth Capital. http://www.newstep.com/  

MI5 Networks Inc., a Sunnyvale, Calif.-based provider of anti-spyware solutions, has raised Series A funding from First Round Capital. http://www.mi5networks.com/

France Telecom has completed a sale of its 54% stake in directories company PagesJaunes for around €3.3 billion, to a private equity consortium that includes KKR, Goldman Sachs Capital Partners, AXA Private Equity and Eurazeo. http://www.pagesjaunes.fr/

Ping Identity Corp., a Denver–based provider of Internet identity technology for enabling secure business collaboration, has raised $13 million in Series C funding. Appian Ventures led the deal, and was joined by return backers Draper Fisher Jurvetson, General Catalyst Partners, Fidelity Ventures, SAP Ventures and I-Vent. http://www.pingidentity.com/

Intent MediaWorks Inc., an Atlanta-based digital media distribution company, has raised $1.2 million in Series A funding, according to a regulatory filing. Backers include Menemsha Capital Partners and IMW Partners. http://www.intentmediaworks.net/

Google Inc. (Nasdaq: GOOG) has agreed to acquire online video-sharing company YouTube Inc. for approximately $1.65 billion in stock. YouTube had raised $11.5 million over two rounds of VC funding, from Sequoia Captial and hedge fund Artis Capital Management. www.google.com www.youtube.com

Cellfish Media LLC, a New York–based developer and distributor of content for mobile phones, has raised $50 million in VC funding from Trio Capital, Telecom Media Fund (Caisse de depot et placement du Quebec) and an affiliate of Desjardins Venture Capital. Cellfish is a subsidiary of France-based Lagardere group. www.cellfishmedia.com

Ripe Digital Entertainment, a Los Angeles-based provider of video-on-demand digital entertainment, has raised $32 million in Series B funding. Backers include Hearst-Argyle, Time Warner Investments, Columbia Capital and Rho Ventures. www.ripedigital.com

3VR Security Inc., a San Francisco-based developer of video management systems for surveillance, has raised $15 million in Series C funding. DAG Ventures led the deal, and was joined by return backers Kleiner Perkins Caufield & Byers, VantagePoint Venture Partners and In-Q-Tel. www.3vr.com

RevCube.com, a San Francisco-based provider of software for automating online marketing relevancy, has raised $14 million in Series C funding. VantagePoint Venture Partners led the deal, while return backers include Generation Partners and Transcosmos. www.revcube.com

InforSense Ltd., a London-based provider of enterprise real-time analytics, has raised $10 million in new VC funding. Existing shareholders Fleming Family & Partners Private Equity and Imperial Innovations Group co-led the deal. www.inforsense.com

Intelliworks Inc., a Rockville, Md.-based provider of CRM solutions for higher education, has raised $10 million in Series B funding. RedShift Ventures was joined by return backers Columbia Capital and Novak Biddle Venture Partners. www.intelliworks.com

Agiliance Inc., a Mountain View, Calif.-based provider of security risk and compliance management solutions, has raised $6.5 million in Series B funding. Walden International led the deal, and was joined by Red Rock Ventures. www.agiliance.com

Smalltown, a San Francisco-based user-generated content site for local communities, has raised $3 million in Series A funding from Formative Ventures. www.smalltown.com

CambridgeSoft Corp., a Cambridge, Mass.-based provider of enterprise solutions for the life sciences market has raised $2 million in second-round funding from existing shareholder Edison Venture Fund. Proceeds were used to repurchase stock from company founders. www.cambridgesoft.com

LeadPoint Inc., a Los Angeles-based online leads exchange marketplace, has raised $2 million in Series A funding from the European Founders Fund. The company previously had raised around $5 million from Redpoint Ventures. www.leadpoint.com

Vysr Inc., a Palo Alto, Calif.-based provider of “online communications Web services,” has raised $1.5 million in Series A funding led by Sand Hill Group, according to a regulatory filing. The company is being run by Tetlier co-founder Guda Venkatesh.

CSIdentity Corp., an Austin, Texas-based company focused on preventing identity theft, has secured around $1.13 million of a $2.5 million Series A round, according to a regulatory filing. Backers include Mandelbrot Ventures, BF Private Capital and the Five H Fund. www.imissary.com

Celiro Inc. (a.k.a. Phonezoo), a Sunnyvale, Calif.-based provider of ringtone software, has raised $560,000 in Series A funding, according to a regulatory filing. Backers include Continental Capital Corp. www.phonezoo.com

Equifax Inc. (NYSE: EFX) has acquired Austin-Tetra, an Irving, Texas-based provider of B2B data management solutions for Fortune 1000 companies and government agencies. No pricing terms of the all-cash deal were disclosed. Austin-Tetra had raised $3.5 million in private funding from Southwest Mezzanine Inv*stments. www.Equifax.com  www.austintetra.com

DoctorsDirect.com Inc., a Santa Monica , Calif.-based company that allows users to book doctor’s appointments online, has raised $2.5 million in Series A funding led by Spark Capital. The company is led by former MapQuest chief Tommy McGloin. www.doctorsdirect.com

3point5 Inc., a Salt Lake City-based provider of online retail sales training, has raised $1.5 million in Series B funding, according to a regulatory filing. Backers include vSpring Capital, Huffman Capital Partners and Longbow Holding Co. www.3point5.com

ExaProtect, a France-based provider of core security event management, has agreed to acquire Solsoft Inc., a Mountain View, Calif.-based provider of security policy management solutions. No financial terms of the deal were disclosed, except that it is supported by VC backers of both companies. ExaProtect shareholders include CIC Innovation and Elaia Partners, while Solsoft has raised around $46 million from firms like CITA Gestion, Carlyle European Venture Partners, Credit Agricole Private Equity, Innovacom, Intel Capital, Logispring, Rothschild Ventures, Sofinnova Partners and VSPA. www.exaprotect.com www.solsoft.com

VNU Group BV has offered to acquire the 39.5% of NetRatings Inc. (Nasdaq: NTRT) that it does not already own, for $16 per share. VNU is controlled by a private equity consortium that includes AlpInvest Partners, Blackstone Group, Carlyle Group, Hellman & Friedman, KKR and Thomas H. Lee Partners. www.vnu.com www.netratings.com

Kenexa Corp. (Nasdaq: KNXA) has agreed to acquire BrassRing LLC, a Waltham, Mass.-based provider of talent management solutions. The deal is valued at approximately $115 million, including $10 million in net cash, and is expected to close later this quarter. BrassRing has raised around $183 million in total VC funding since its 1999 inception, including a $15 million 2001 deal with a $144 million post-money valuation, and a $40 million down-round in 2002 at a $75 million post-money valuation. Backers include Accel Partners, Gannett Co., Kaplan, Tribune Co. and the Washington Post Co. www.kenexa.com www.brassring.com

Avolent Inc., a San Francisco–based provider of self-service electronic billing and payment software, has raised $9 million. RBC Technology Ventures led the deal, and was joined by return backers like Columbia Capital, Constellation Ventures and Rho Ventures. Avolent has raised over $120 million in total VC funding since 1998. www.avolent.com

Get Lower Inc., an Irvine, Calif.-based online provider of real estate financing services, has raised $3 million in Series A funding from Miramar Venture Partners, according to a regulatory filing. www.getlower.com

MSpot Inc., a Palo Alto, Calif.-based provider of audio and video entertainment to mobile phones, has raised $2.33 million in Series A funding led by Trinity Ventures, according to a regulatory filing. www.mspot.com

Voddler Inc., a Palo Alto, Calif.-based virtual cable television system developer, has raised around $2.2 million in VC funding, according to a regulatory filing. Backers include Freja Ventures ( Sweden ) and Lotsa SA ( Luxembourg ). www.voddler.com

October 6, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 4:00 am

Yelp Inc., a San Francisco-based provider of localized social networking and directory services, has raised $10 million in second-round funding from Benchmark Capital. It raised $5 million last year in a Series A round led by Bessemer Venture Partners.

Wyplay SAS, a France-based developer of “all-in-one” home entertainment boxes, has raised €4 million from Sofinnova Partners.

Zannel Inc., a Menlo Park, Calif.-based mobile media startup, has raised $6 million in Series A funding co-led by U.S. Venture Partners and Palomar Ventures.

B5Media Inc., a Toronto-based blogging network, has raised US$2 million in VC funding from Brightspark Ventures and JLA Ventures.

CityVoter Inc., a Cambridge, Mass.-based developer of online city guides for media companies, has raised $1.1 million in Series A funding led by Tudor Ventures.

General Atlantic is among the private equity firms in talks to acquire listed HR software provider Northgate Information Solutions PLC, according to The Independent newspaper. The deal could be valued is excess of $1 billion, with the company confirming that it has received “a number of unsolicited approaches.”

Serena Software Inc., a San Mateo, Calif.-based provider of change governance software, has agreed to acquire Pacific Edge Software Inc., a Bellevue, Wash.–based provider of project and portfolio management solutions. No financial terms were disclosed for the deal, which is expected to close later this month. Serena Software is a portfolio company of Silver Lake Partners, while Pacific Edge has raised over $44 million in VC funding from firms like Fluke Venture Partners, Northwest Venture Associates, Sequoia Capital, Stanford University, Foundation Capital, Dain Rauscher Corp. and Newbury Ventures.

Fonality Inc., a Culver City, Calif.-based provider of IP telephony systems for small and medium businesses, has acquired TrixBox, an online forum in which users can discuss open-source telephony and download Asterisk-based software. No financial terms were disclosed. Fonality raised $5 million in Series B funding last year led by Azure Capital Partners. 

JumpTap Inc., a Cambridge, Mass.-based provider of mobile search and advertising solutions, has raised $22 million in Series C funding. Valhalla Partners led the deal, and was joined by return backers General Catalyst Partners, BCE Capital and Redpoint Ventures. 

Lendia Inc., a Marlborough, Mass.-based provider of outsourced solutions to financial institutions that originate residential mortgages, has raised an undisclosed amount of private funding from 1848 Capital Partners.

ExlService Holdings Inc., a New York-based provider of business process outsourcing solutions, has set its proposed IPO terms to five million common shares being offered at between $10 and $12 per share. It plans to trade on the Nasdaq under proposed ticker symbol EXLS, with Citigroup and Goldman Sachs serving as co-lead underwriters. The company was acquired in 2002 from Conseco Inc., via a management buyout sponsored by Oak Hill Capital Partners and Financial Technology Ventures.

Xerox Corp. (NYSE: XRX) has agreed to acquire XMPie Inc., a New York–based provider of variable information software. The deal is valued at $54 million in cash, and is expected to close within 30 days. XMPie has raised around $9 million in VC funding from JVP. 

I-Flex Solutions ( Bombay : IFLX.BO) has completed its previously-announced acquisition of Mantas, a Herndon, Va.-based anti-money laundering and compliance software, from Safeguard Scientifics. The deal was valued at $122.6 million, and was be partially financed via a new $125 million investment in I-Flex from Oracle. 

Openwave Systems Inc. (Nasdaq: OPWV) has acquired SoloMio Corp., an Austin, Texas–based provider of integrated subscriber call management services. No financial terms were disclosed. SoloMio had raised over $26 million in VC funding from firms like Austin Ventures, Koch Ventures, Partech International, Gemplus and Techxas Ventures. 

October 4, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 12:36 am

PayPerPost, an Orlando, Fla.-based marketplace for advertisers to reach bloggers, videographers, photographers, podcasters and social networks, has raised $3 million in Series A funding. Inflexion Partners led the deal, and was joined by Village Ventures and Draper Fisher Jurvetson. 

Saban Capital Group has launched a new venture that will develop and market family entertainment properties. Its first effort is called Hollywood Star Dogs.

GTCR has completed the formation of BNY ConvergEx Group, which rolls up the trade execution, commission management and independent research businesses of BNY Securities Group with Eze Castle Software, a provider of trade order management. The entire transaction is valued at over $1 billion, with GTCR and Bank of New York each holding 35.4% ownership stakes, and Eze Castle and company management holding the remainder. Bank of New York’s B-Trade and G-Trade businesses are expected to become part of the new company in 2008. 

GlobalStar Inc., a Milpitas, Calif.-based provider of voice and data communications services via satellite, has set its proposed IPO terms to 6.5 million common shares being offered at between $16 and $18 per share. It plans to trade on the Nasdaq under ticker symbol GSAT, with Wachovia Securities and JPMorgan serving as co-lead underwriters. Shareholders include Thermo Funding Co., Columbia Ventures Corp., Banc of America Securities and Qualcomm.

Knight Capital Group (Nasdaq: NITE) has acquired ValuBond Inc., an Atlanta-based provider of electronic access and trade execution products for the fixed income market. The deal was valued at $18.2 million in cash. ValuBond had raised over $30 million in VC funding since its 1999 inception, from firms like Alliance Technology Ventures, Financial Technology Ventures, LabMorgan and Wasatch Venture Fund. 

Nasdaq Stock Market said yesterday that it will raise the annual fee charged to companies that list on its exchange. The new fee will go into effect for 2007, and is expected to range from $30,000 for up to 10 million outstanding shares (currently $24,500) to $95,000 for over 150 million outstanding shares (now $75,000).

BelAir Networks, a Kanata, Ontario–based provider of mobile wireless broadband mesh network solutions, has raised US$21.4 million in Series D funding. Ventures West Management led the deal, and was joined by Trilogy Equity Partners and return backers Comcast Interactive Capital, T-Mobile Venture Fund, Panorama Capital, VenGrowth Capital Partners Inc., BDC Venture Capital and MMV Financial. MMV Financial also provided an additional $5 million in debt financing.

HyPerformix Inc., an Austin, Texas-based provider of predictive IT management solutions, has raised $5 million in third-round funding. Silicon Valley Bank was joined by return backers like M/C Venture Partners and Morgan Stanley Venture Partners. 

Misys PLC, a UK-based provider of IT solutions to the banking industry, has terminated takeover talks “with immediate effect.” Both General Atlantic and Permira had expressed interest, but never made formal bids. In related news, Misys announced that CEO Kevin Lomax has resigned. 

MBK Partners is close to winning the $1.6 billion auction for Taiwanese cable television company China Network Systems, according to The Wall Street Journal. Silver Lake Partners has completed its $800 million acquisition of IPC Information Systems LLC from GS Capital Partners. IPC is a New York–based provider of mission-critical trading floor communications solutions to the financial industry, and was advised by Goldman Sachs. JPMorgan and Morgan Stanley advised Silver Lake. 

Brentwood Associates has acquired The Teaching Co., a Chantilly , Va.–based publisher and direct marketer of university-level courses on DVD, audio CD and other formats. No financial terms were disclosed for the deal, which included equity participation by company management. The Teaching Co. was advised by Berkery, Noyes & Co.

September 30, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 7:40 pm

Demand Media Inc., a Santa Monica, Calif.-based acdquiror of online content sites and generic Internet domain names, has raised $100 million in second-round funding. 3i Group and Oak Investment Partners co-led the deal, while Spectrum Equity Investors also participated. Demand Media was formed earlier this year with a $120 million infusion from Oak, Spectrum and Generation Capital Partners.

VideoEgg Inc., a San Francisco-based provider of Web-based video publishing solutions, has raised $12 million in Series C funding. Maveron led the deal, and was joined by return backers August Capital and First Round Capital.

3VR Security Inc., a San Francisco-based provider of next-generation video recorders, has secured $9 million of a $17 million Series C round, according to a regulatory filing. Return backers include DAG Ventures, Kleiner Perkins Caufield & Byers and VantagePoint Venture Partners.

BoardVantage Inc., a Menlo Park, Calif.-based provider of secure portals for corporate board work, has raised $5.5 million in fourth-round funding from return backers Bay Partners and Foundation Capital.

Integrated Mobile Inc., a Columbus, Ohio-based provider of wireless managed mobility services, has raised $5 million in private equity funding from Enhanced Equity Fund.

SignStorey Inc., a Fairfield, Conn.-based provider of in-store media networks for the grocery industry, has raised an undisclosed amount of Series B funding. The company only would say that the deal lead was a “Fortune 1000 asset management company,” and that existing shareholder Golden Gate Capital also participated.

Switch and Data, a Tampa, Fla.-based provider of Internet exchange infrastructure, has filed to raise $150 million via an IPO of common stock. It plans to trade on the Nasdaq under ticker symbol SDXC, with Deutsche Banc Securities and Jefferies & Co. serving as co-lead underwriters. Switch and Data shareholders include CapStreet Group, Seaport Capital Partners and Tudor Ventures.

ICF International Inc., a Fairfax, Va.-based consulting and technology services firm, priced 4.67 million common shares at $12 per share, for an IPO take of approximately $56.04 million. It will trade on the Nasdaq under ticker symbol ICFI, while UBS served as lead underwriter. CM Equity Partners was the company’s majority shareholder pre-IPO, and still retains a significant ownership position.

Microsoft Corp. (Nasdaq: MSFT) has agreed to acquire Gteko Ltd., an Israel-based provider of support automation software solutions for personal computers. No financial terms were disclosed, although Israeli newspaper reports put the sale price at around $120 million. Gteko raised $12 million in a 2004 venture capital deal from firms like Intel Capital and Pitango Venture Capital. 

Sun Microsystems Inc. (Nasdaq: SUNW) has agreed to acquire Neogent Inc., an Austin, Texas–based provider of identity management services automation. No financial terms were disclosed. Neogent has raised VC funding from Saber Capital. 

Twisted Pair Solutions Inc., a Seattle developer of IP-based communications software, has raised $9 million in its first round of institutional VC funding. Ignition Partners and Core Capital Partners co-led the deal, and were joined by Chart Venture Partners.

ObjectVideo Inc., a Reston, Va.-based provider of video processing software for physical security applications, has raised $8 million in Series E funding, according to a regulatory filing. Backers include ABS Ventures, CMGI @Ventures, Novak Biddle Venture Partners and Updata Partners.

Fotolog Inc., a New York-based photo blogging community, has raised $4.1 million in Series C funding, according to a regulatory filing. Return backers include 3i Group and BV Capital.

Kurtosys Systems Inc., a New York-based provider of financial reporting software and services, has secured $3.4 million of a $5.15 million Series A deal led by True Ventures, according to a regulatory filing.

DoublePositive Marketing Group Inc., a Baltimore-based provider of sales lead generation solutions, has raised $2.7 million in Series B funding. The Grosnevor Funds led the deal, and were joined by return backers WWC Capital Group, Inner Harbor Brothers (Advertising.com founders) and Stein Kretsinger (former Advertising.com senior executive).

ForteMedia Inc., a Cupertino, Calif.-based provider of voice processing technology for automobile, PC and portable devices, has raised an undisclosed amount of strategic funding from Intel Capital. Existing ForteMedia shareholders include iGlobe Partners, Marvell Semiconductor, Pac-Link Management and UMC Capital.

The Riverside Co. has acquired It’s Just Lunch International, a Palm Desert, Calif.–based franchisor of matchmaking and dating services. No financial terms were disclosed for the deal, which also included participation from company management. 

Shutterfly Inc., a Redwood City, Calif.-based provider of online digital photo services, priced 5.8 million common shares at $15 per share ($13-$15 range), for an IPO take of approximately $87 million. It will trade on the Nasdaq under ticker symbol SFLY, while JPMorgan served as lead underwriter. The company raised around $67 million in total VC funding from firms like Mohr, Davidow Ventures, Sutter Hill Ventures, Granite Ventures and Jim Clark’s Monaco Ventures.

Zavata Inc. (f.k.a. Integreo Inc.), an Atlanta-based provider of BPO solutions for the healthcare market, has acquired Accordis Inc., a Princeton, N.J.-based provider of business office services for hospitals and emergency transport agencies. No financial terms were disclosed. Zavata has raised around $36 million in VC funding from firms like BV-Cornerstone Ventures, Mellon Ventures, Petra Capital Partners and Sequoia Capital India.  

September 28, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 1:03 am

Visto Corp., a Redwood City, Calif.-based mobile access company, has raised $51 million in new venture capital funding. Return backer Oak Investment Partners led the deal, and was joined by DFJ Growth Fund and other existing shareholders like Meritech Capital Partners, DFJ ePlanet Ventures, Rustic Canyon Ventures and Blueprint Ventures. Visto has raised over $250 million in total VC funding since its 1996 inception, including a recap in 2001. 

Neusoft Group Ltd., a Shanghai-based software and solutions provider, has raised $40 million in strategic funding from Intel Capital. Under terms of the agreement, Neusoft will establish a “solution performance optimization competency center” based on Intel architecture and platforms. The deal is subject to regulatory approvals.

GridPoint Inc., a Washington, D.C.-based provider of energy management products, has raised $21 million in strategic third-round funding led by Goldman Sachs. GridPoint raised a $16 million Series B deal earlier this year from Altira Group, Contango Capital and Advantage Capital Partners. 

Ario Data Networks, a San Jose, Calif.-based provider of mid-sized enterprise storage solutions, has raised $8 million. Clearstone Venture Partners and Partech International co-led the deal, and were joined by fellow return backers Mellon Ventures, Evercore Partners, Anthem Venture Partners and Sunsino Ventures. 

oDesk Inc., a Palo Alto, Calif.-based online marketplace for hiring global technical talent and provider of Web-based tools for managing remote staffers, has raised $8 million in Series B funding. Benchmark Capital led the deal, and was joined by return backers Globespan Capital Partners and Sigma Partners. 

Anodyne Health Partners, a Falmouth, Maine–based provider of revenue cycle management solutions for healthcare providers, has raised $5.6 million in new venture capital funding. Backers include Brook Venture Partners, Frontier Capital, Brooke Private Equity Advisors and the Small Enterprise Growth Fund. 

Auctionpay Inc., a Portland, Ore.-based provider of fundraising software and service solutions for the nonprofit community, has raised $5.5 million in Series B funding from Appian Ventures and return backer Maveron. 

GuardID Systems Inc., a San Mateo, Calif.-based company focused on the prevention of online identity theft and fraud, has raised $5 million in first-round funding from Trinity Ventures. 

OpenLogic Inc., a Broomfield, Colo.-based provider of open-source enterprise software stacks and support services, has raised $4.3 million in second-round funding. Backers include UV Partners, Appian Ventures, Village Ventures, Highway 12 Ventures and Red Rock Ventures. 

ETelemetry Inc., an Annapolis, Md.-based developer of network appliances that track such things as bandwidth usage and desktop computing assets, has raised $4 million in first-round funding led by Centripetal Capital Partners. The company was founded in 1999. 

NitroSecurity Inc., a Portsmouth, N.H.-based provider of enterprise network security solutions, has secured $2 million of a $5 million Series C round, according to a regulatory filing. Brookline Venture Partners was joined by return backer First Analysis Corp. 

Genesis Networks Inc., a New York–based provider of global video transmission services over fiber and satellite, has raised an undisclosed amount of second-round funding from Longworth Venture Partners and Masthead Venture Partners. 

NextNine Inc., an Israel-based provider of support automation solutions, has raised an undisclosed amount of new VC funding led by Motorola Ventures. Return backers include Ascend Technology Ventures, Infinity Venture Capital Fund, Ofer Hi-Tech, Yozma Venture Capital Group, Morgan Stanley Dean Witter Private Equity and Redwood Venture Partners. The company previously had raised $34 million in total VC funding since its 1999 inception. 

Duke Street Capital has agreed to acquire UK-based IT services company 2e2 from Gresham Private Equity for £130 million.  

Sandler Capital Management has acquired substantially all of the assets of the Crafts Group from Primedia Inc. (NYSE: PRM) for approximately $132 million in cash. The group will be renamed Enthusiast Media LLC, and publishes nine consumer publications like Creating Keepsakes and McCall’s Quilting.

Audax Group has acquired a majority of Flexstar Technology Inc., a Fremont, Calif.-based provider of data storage testing solutions. No financial terms were disclosed. Rigel Associates and company management also participated in the deal’s equity tranche, while Comerica provided senior leverage financing.  

Block Interest Discovery Service (BIDS) has launched as an alternative trading system for the block trading market. It is being backed by six brokerage firms, although no financial terms were disclosed. The firms are: Citigroup, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS. A CEO announcement will come within the next few weeks, with trading expected to commence in early 2007.

September 27, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 5:25 am

General Atlantic has agreed to acquire a 52% interest in Emdeon Business Services from Emdeon Corp. (Nasdaq: HLTH). The total transaction is valued at approximately $1.2 billion, including $320 million from General Atlantic and $925 million in leverage from Citigroup, Deutsche Bank and Bear Stearns. Emdeon was advised by The Blackstone Group and Citigroup Corporate and I-Banking. Emdeon Business Services provides revenue cycle management and clinical communication solutions for the healthcare market.  

Rebtel Networks AB, a Sweden-based provider of mobile VOIP services, has raised $20 million in Series A funding from Benchmark Capital and Index Ventures.

Air2Web Inc., an Atlanta-based provider of mobile messaging and marketing applications, has raised $25 million in third-round funding. The Carlyle Group led the deal, and was joined by return backers VantagePoint Venture Partners, UPS and company founder Jay Chaudhry. This is Air2Web’s first VC round since 2001, and brings its overall venture capitalization to around $77 million. 

Mavent Inc., an Irvine, Calif.-based provider of automated compliance solutions for the financial services industry, has raised $10 million in Series C funding led by FT Ventures. 

Wallop, a San Diego-based social networking spinout from Microsoft, has raised $10 million in Series B funding. Norwest Venture Partners led the deal, and was joined by return backers Bay Partners and Consor Capital.

Whaleback Systems Inc., a Portsmouth, N.H.-based provider of IP telephony services for small and mid-sized businesses, has raised $7.5 million in Series B funding. Castile Ventures led the deal, and was joined by Egan-Managed Capital and return backer Ascent Venture Partners. 

Enkata Technologies Inc., a San Mateo, Calif.-based provider of enterprise performance management software, has raised $4.88 million in fourth-round funding, according to a regulatory filing. Sigma Partners was joined by return backers ComVentures and Apex Venture Partners. 

Sermo, a Cambridge, Mass.-based online community for physicians, has raised $3 million in Series A funding from Longworth Venture Partners. 

Genbook Inc., a San Francisco-based provider of online advertising solutions, has raised $2.2 million in Series A funding led by Neo Technology Ventures of Australia.

September 26, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 5:01 am

Ecast Inc., a San Francisco-based operator of a broadband-enabled touchscreen media network, has raised $20 million in new venture capital. Focus Ventures led the deal, and was joined by return backers Mobius Venture Capital, Crosslink Capital, DCM and El Dorado Ventures. The company has raised over $80 million in total VC funding since its 199 inception. 

ContextWeb Inc., a New York-based provider of real-time contextual advertising solutions, has raised $15.5 million in Series C funding. Draper Fisher Jurvetson led the deal, and was joined by fellow return backers DFJ Gotham Ventures, Updata Partners and DFJ New England. 

Compellent, an Eden Prairie, Minn.-based provider of data storage and data management solutions, has raised $15 million in new venture capital. Nomura International led the deal, and was joined by return backers Cargill Ventures, Centennial Ventures, Crescendo Ventures and El Dorado Ventures. It has raised more than $53 million in total VC funding. 

Nexaweb Technologies Inc., a Burlington, Mass.-based company focused on helping enterprises deploy Web 2.0 applications, has raised $10 million in Series B funding. Return backers include Egan-Managed Capital, Masthead Venture Partners and Velocity Partners. 

Full Capture Solutions Inc., an East Hartford , Conn.-based provider of predictive solutions for the insurance industry, has raised $7 million in Series B funding. Greylock Partners led the deal, and was joined by return backer Ignition Partners. 

Mobile Cohesion, a Belfast , Ireland-based provider of partner relationship management solutions for the telecom industry, has raised $4.8 million in second-round funding. Enterprise Equity led the deal, and was joined by Viridian Growth Fund and return backers Accel Partners and Cross Atlantic Partners. 

Sterling Capital Partners and Citigroup Private Equity are sponsoring a proposed $8 per share management buyout of Educate Inc. (Nasdaq: EEEE). The company’s stock price closed at $7.06 per share on Friday, and Educate says that it will review the proposal. 

France Telecom has received European Commission approval to sell its 54% stake in directories company PagesJaunes for around €3.3 billion, to a private equity consortium that includes KKR, AXA Private Equity, Eurazeo and Goldman Sachs.

eHealth Inc., a Mountain View, Calif.-based online source of health insurance for individuals, families and small businesses, has set its proposed IPO terms to five million common shares being offered at between $10 and $12 per share. It plane to trade on the Nasdaq under ticker symbol EHTH, with Morgan Stanley and Merrill Lynch serving as co-lead underwriters. The company raised around $86 million in VC funding, from firms like Sprout Group, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, QuestMark Partners and Lake Street Partners. 

Caribe Acquisition Holdings, a portfolio company of Welsh, Carson, Anderson & Stowe, has agreed to acquire ACS Media LLC for Cdn$188 million. ACS Media is the largest publisher of print and Internet advertising directories in Alaska.

RigNet Inc., a Houston, Texas-based provider of managed communications services for the upstream oil and gas industry, has acquired OilCamp AS, a Norwegian provider of communications services to the oil industry. No financial terms were disclosed. RigNet has raised nearly $14 million in VC funding from firms like Altira Group, HitecVision and Sanders Morris Harris, while OilCamp had been backed by HitecVision and TeleVenture Management.  

Siemens Building Technologies Inc. has agreed to acquire VistaScape Security Systems Corp., an Atlanta-based provider of video analytic technology designed to protect critical infrastructure from a broad spectrum of threats. No financial terms were disclosed for the deal, which is expected to close within 30 days. VistaScape has raised over $18 million in VC funding from firms like H.I.G. Capital, Paladin Capital Group, CDP Capital and Visionaria Venture Capital.

September 23, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, US Internet — Dave @ 1:25 am

Voxant, a Reston, Va.-based provider of a “viral syndication network” for online news, has raised $10.5 million in second-round funding. SoftBank Capital and Court Square Ventures were joined by return backer Longworth Venture Partners.

Telepo Inc., a Sweden-based provider of enterprise communications software, has raised €4 million from Accel Partners.

RingCube Technologies Inc., a Mountain View, Calif.-based provider of portable personal computing software, has raised $4 million in Series A funding led by New Enterprise Associates.

CommVault Systems Inc., an Oceanport, N.J.-based provider of data management software applications, priced 11.11 million common shares at $14.50 per share ($12.50-$14.50 range), for an IPO take of approximately $161 million. It will trade on the Nasdaq under ticker symbol CVLT, while Credit Suisse and Goldman Sachs served as co-lead underwriters. Shareholders include TH Lee Putnam, Sprout Group and DLJ Merchant Banking Partners.

DivX Inc., a San Diego-based provider of video compression technology, priced 9.1 million common shares at $16 per share ($12-$14 range), for an IPO take of approximately $145.6 million. It will trade on the Nasdaq under ticker symbol DIVX, while JPMorgan served as lead underwriter. DivX had raised around $47 million in VC funding from firms like Zone Ventures, WI Harper Group, Insight Venture Partners, Draper Atlantic, Wasatch Venture Fund, Springboard-Harper, Cardinal Venture Capital, Ali Corp. and Cyberlink International Technology Corp.

Seventymm Services Pty Ltd., an Bangalore , India-based online movie rental company, has raised $7 million in second-round funding. Matrix Partners led the deal, and was joined by return backer Draper Fisher Jurvetson.

Packetmotion Inc., a San Jose, Calif.-based provider of enterprise security software, has raised $5.97 million in Series B-1 funding, according to a regulatory filing. Return backers include Onset Venture Partners, Intel Capital and Mohr, Davidow Ventures.

Vignani Technologies Pvt Ltd., an India-based engineering services provider, has raised $4 million in first-round funding from Intel Capital, Jafco and KT Ventures.

Abla-Tx Inc., a Boulder, Colo.-based developer of software-based algorithms to monitor thermal ablation of tumors, has secured $2 million of a $2.5 million Series B round, according to a regulatory filing. Backers include Flagship Ventures and Sequel Venture Partners.

Incisive Media PLC, a listed UK-based business information publisher, is recommending a Gbp199 million cash offer from Apax Partners

Riverbed Technology Inc., a San Francisco-based provider of wide area network performance software, priced 8.4 million common shares at $9.75 per share (above $7-$8.50 range), for an IPO take of $81.9 million. It plans to trade on the Nasdaq under ticker symbol RVBD, while Goldman Sachs served as lead underwriter. The company had raised $56.6 million in VC funding since its 2002 inception, from firms like Accel Partners, Lightspeed Venture Partners, UT Partners, Meritech Capital Partners and Goldman Sachs.

Paradigm Ltd., a Cayman Islands-based provider of enterprise software for the global oil and gas exploration and production market, has filed to raise $200 million via an IPO of common stock. It plans to trade on the Nasdaq, with Lehman Brothers, UBS and Banc of America Securities serving as co-lead underwriters. Fox Paine holds a 92.3% pre-IPO position.

SecureWorks Inc. of Atlanta and LURHQ Corp. of Myrtle Beach , S.C. of have merged, in order to form a single provider of managed information security services. No financial terms were disclosed. SecureWorks has raised around $30 million in VC funding from firms like Alliance Technology Ventures, GE Equity, Mellon Ventures, Noro-Moseley Partners and SBK Capital. LURHQ was backed by Frontier Capital. 

Central American Capital Group has acquired a 49.9% stake in Amnet Telecommunications Holdings Ltd., which provides cable television and broadband Internet access in El Salvador , Costa Rica and Honduras. No financial terms were disclosed. CACG was formed as an acquisition platform by MesoAmerica of Costa Rica , with the Kazma family participating on the Amnet deal.

Pentaho Corp., an Orlando, Fla.-based provider of open-source business intelligence software, has acquired the Weka open source data mining project developed by the University of Waikato in New Zealand . No financial terms were disclosed. Pentaho has raised $13 million in VC funding from firms like Index Ventures and New Enterprise Associates.

Telco Systems, a Foxboro, Mass.-based subsidiary of BATM Advanced Communications ( London : BVC), has acquired the assets of Critical Telecom Corp., an Ottawa-based developer of broadband enabling platforms for IP-based access networks. No financial terms were disclosed. Critical Telecom has raised VC funding from BDC Venture Capital, Crown Ventures, Tellus Ventures and VenGrowth Capital.

CDW Corp. (Nasdaq: CDWC) has agreed to acquire Berbee Information Networks Corp., a Madison, Wis.-based independent IT solution provider, for $175 million in cash. Berbee had raised $17.5 million in 2000 from One Equity Partners and Baird Capital Partners, with Baird still listing Berbee as a portfolio company.

September 21, 2006

Internet and Software Deals of the Day

Filed under: Asia Internet, Digital New Media, Fundings, Software, US Internet — Dave @ 3:16 am

InvesTools Inc. (Nasdaq: IEDU) has agreed to acquire ThinkorSwim Group Inc., operator of an online brokerage platform. The deal is valued at approximately $340 million, including $170 million in cash and 19.1 million IEDU common shares (30% stake). To help fund the deal, InvesTools will receive a $125 million senior term loan and a $25 million revolving credit facility from JPMorgan. TwinkorSwim raised $22.5 million in VC funding in 2004 from Technology Crossover Ventures. 

DATAllegro, an Aliso Viejo, Calif.-based provider of data warehousing appliances, has raised $22.5 million in Series C funding. Jafco Ventures led the deal, and was joined by Focus Ventures and return backers Adams Capital Management, Intel Capital, Palomar Ventures and Venrock Associates.

Netadmin, a Sweden-based provider of management software for broadband operators, has raised SEK 44 million ($6.06 million) from Eqvitec. 

Dexterra Inc., a Bothell, Wash.-based provider of mobile workforce and field service software, has raised $6 million in additional Series D funding, according to a regulatory filing. This brings the round total to $18 million. Backers include Canaan Partners, Motorola Ventures, Intel Capital, SagusCapital and Sigma Partners.

SoonR Inc. of Campbell , Calif. has raised $6 million in Series A funding. Clearstone Venture Partners led the deal, and was joined by Intel Capital. The company enables mobile access to PC-based information and applications from any cell phone over any carrier network.

Boston Ventures has agreed to acquire a majority stake in En-Touch Systems Inc., a broadband services provider that serves the suburbs of Houston , Texas . No financial terms were disclosed. Sellers included several family trusts, while company management teamed with Boston Ventures. 

AppLabs Technologies, a Philadelphia-based software testing company, has acquired IS Integration, a UK-based IT and business solutions testing consultancy, for $36 million in cash. AppLabs has raised $17 million from Sequoia Capital India, while IS.

Art Technology Group Inc. (Nasdaq: ARTG) has agreed to acquire eStara Inc., a Reston , Va.–based provider conversion solutions for enhancing online sales and support initiatives. The deal is valued at up to $48.3 million, including $2 million in cash, a $6 million cash earn-out and around 15.3 million common shares of ATG stock. Estara raised $17 million in VC funding in 2000, including a $15 million infusion at a $25 million post-money valuation. Backers included Texas Pacific Group, One Equity Partners and JNet Ventures.  

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