Venture Capital News
Serena Software to be Acquired by Silver Lake Partners in a $1.2 Billion Deal
Representatives of Serena Software, Inc. and Silver Lake Partners announced that they have entered into a definitive agreement under which Serena will be acquired by Silver Lake in a transaction valued at approximately US$1.2 billion.
Under the terms of the agreement, Serena stockholders will receive $24.00 in cash in exchange for each share of stock. Any of Serena’s existing $220 million of convertible notes that are not converted to Serena common stock prior to completion of the proposed transaction will be exchanged for cash in an amount of $24.00 for each share of Serena common stock into which the notes were convertible.
Douglas D. Troxel, founder of Serena and currently its chairman and largest shareholder, will receive $24.00 per share in cash in exchange for one-third of his shares and will exchange the balance of his equity interest in Serena for shares in the resulting privately held company. Serena president and chief executive officer Mark Woodward, chief financial officer Robert Pender, and possibly other senior executives will also exchange a portion of their Serena equity interests for equity interests in the resulting privately held company.
Both the board of directors of Serena and a special committee of the board comprised of independent directors have approved the merger agreement and have recommended to Serena’s stockholders that they vote in favor of the transaction. In addition, Mr. Troxel has agreed to vote his shares in favor of the transaction.
The transaction is expected to be completed in the first quarter of calendar year 2006, subject to receipt of stockholder approval and customary regulatory approvals as well as satisfaction of other customary closing conditions, including receipt of debt financing pursuant to customary commitment letters.
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Power Paper Completes $30 Million Fundraising Round Led by Funds Advised by Apax Partners and Clal Industries and Investments
Representatives of Power Paper Ltd., a leading provider of thin and flexible micro-power source technology and devices, announced that it has completed a US$30 million fundraising round. The round was led by Funds advised by Apax Partners, which invested $16 million, and Clal Industries and Investments and the Infinity Venture Capital Fund, which together invested $12 million. Previous investor, Banc America Capital Partners, also participated in the round, investing $2 million.
Established in 1997, Power Paper specializes in developing and marketing technology applications that operate with the thin and flexible, environment-friendly micro-power source that the company has developed. The power source does not require metal casing and can be printed cost-effectively directly onto paper, plastic, or other substrates, using standard printing equipment. The battery technology allows product manufacturers to design a power source that suits a specific product, rather than match the product to the form factor of the power source.
Power Paper batteries are integrated into the company’s PowerCosmetics patches, used to augment the penetration of cosmetics formulations. In addition, the batteries are integrated into the company’s PowerID smart radio frequency identification (RFID) labels and other products. Power Paper customers include leading global companies, some of which act as strategic partners.
Since its inception, Power Paper has raised capital from Banc America Capital Partners, Amadeus Capital Partners (UK), PolyTechnos (Germany), the Millenium Fund (Israel), Yasuda Enterprise Development (Japan), EDB (Singapore), and Toppan Forms (Japan).
The company employs about 80 people at its headquarters in Petah Tikva, outside of Tel Aviv.
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Pennsylvania Governor Rendell Announces More Than $1.5 Million Investment for Technology Project
Pennsylvania Governor Edward G. Rendell announced more than $1.5 million in investments by the Ben Franklin Technology Development Authority to support technology-focused economic development and the creation of high-tech jobs.
Since 2003, the Ben Franklin Technology Development Authority has approved more than $156 million to attract and keep businesses in the state.
The authority is a state-funded network dedicated to fostering technology innovation, strengthening the commonwealth's economy and creating and retaining good-paying jobs requiring advanced skill levels. It provides funding for a host of technology initiatives and supports four Ben Franklin Technology Partners throughout Pennsylvania that identify the most promising technological ventures and support them with technical assistance and capital.
The Ben Franklin Technology Development Authority approved the following projects:
Intellectual Property Donation and Commercialization: Innovation Philadelphia and Phoenix IP Ventures were awarded $750,000 in operational funding for a joint initiative called Intellectual Property Donation and Commercialization. The purpose of the new entity will be to facilitate and accept intellectual property donations from Fortune 500 companies that will benefit from tax credits for the donation. Intellectual Property Donation and Commercialization will use that intellectual property to create new investment opportunities for existing small companies or create entirely new companies. The initiative will result in new businesses, job creation, research partnerships and foreign direct IP investments for the commonwealth.
Cluster-Based Technology Assistance Project (second year of funding): The Pennsylvania Technical Assistance Program (PENNTAP) will receive $400,000 for the continuation of the Cluster-Based Technology Assistance initiative, a project providing advanced information technology assistance to businesses in targeted industry clusters throughout the commonwealth. Through this initiative, PENNTAP specialists support technology-based economic development by providing solutions to the specific needs of entrepreneurial and medium- sized companies. PENNTAP assists companies with the education, tools, up-to- date information and best practices, which are essential to these regional industries clusters, allowing them to become competitive in the global market. This initiative also includes healthcare as a statewide industry cluster and will provide assistance to this sub-sector of the biosciences industry throughout Pennsylvania.
Harrisburg Market Keystone Innovation Zone funding: The Capital Region Economic Development Corporation received $187,500 as part of its second year KIZ operational funding. The KIZ targets advanced manufacturing, biosciences and business technology solutions. The partnership includes the Hershey Medical Center, Penn State Harrisburg, Messiah College, Central Pennsylvania College, Harrisburg University, Harrisburg Area Community College, Dickinson College and Shippensburg University. The KIZ has worked closely with its partners to assist with locating six new start-up companies within the Zone and has created 20 new, quality jobs during its first year of operation.
Greater Oakland KIZ funding: The MPC Corporation received $187,500 as part of its second year KIZ operational funding. The KIZ's higher education partners include the University of Pittsburgh and Carnegie-Mellon University. The Greater Oakland KIZ supports the Pittsburgh region and its universities' efforts to enhance the volume and success of new technology-based growth in southwestern Pennsylvania's economy. The primary goal of the KIZ is to commercialize and grow an already strong research base in the Pittsburgh region. During its first year of operations, the Greater Oakland KIZ has attracted an international biosciences company (BTF Precision Microbiology) and an out of state company (NanoDynamics) to the Zone.
A cornerstone of Governor Rendell's economic stimulus package, the KIZs gather and align the combined resources of institutions of higher education, private business, commercial lending, venture capital and foundations. Currently, the Ben Franklin Technology Development Authority has approved 16 KIZs and over 30 institutions of higher education are participating in the program.
Governor Rendell's economic stimulus package contains several programs that focus on technology development, including the New Pennsylvania Venture Capital Investment Program, Second Stage Loan Guarantee, the New Pennsylvania Venture Loan Guarantee Program and the Research and Development Tax Credit and its tradability component. These programs focus investment in new high-growth companies and channel support and funding for companies to expand, create jobs and retain Pennsylvania's talent.
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Linden LLC Forms Health Care, Life Sciences Fund
Private investment firm Linden LLC has formed Linden Capital Partners LP to pursue leveraged buyouts in the health care and life sciences arena.
The fund has capital commitments exceeding $100 million and an expected $200 million cap.
Linden LLC seeks buyouts at $5 million or above, and doesn’t make venture investments. The firm will use both its own capital through Linden Capital Partners LP for middle market deals and Madison Dearborn Partners for larger transactions.
According to a statement, Linden’s investment strategy will be to focus specifically on healthcare and life sciences companies, form relationship with large corporations, particularly with these firm’s non-core businesses, and work closely with Linden’s operating partners, who include Richard De Schutter, former Chair and CEO of G.D. Searle, and Gerard Moufflet, a former corporate vice president of Baxter International.
In April Linden completed its first investment with the acquisition of Ranir, a contract manufacturer of consumer oral care products headquartered in Grand Rapids, Mi. Parish Capital Advisors provided the equity capital bridge for Linden’s investment.
Linden LLC was formed in 2002 by Eric Larson, Tony Davis and Brian Miller formerly of the First Chicago Equity Capital (now One Equity Partners), and Mary Beth Pieprzyca, an 18-year veteran of Bristol Myers Squibb.
