Exit Watch –

Cisco Systems Inc. (Nasdaq: CSCO) has agreed to acquire P-Cube Inc., a Sunnyvale, Calif.-based developer of IP service control platforms. The deal is valued at about $200 million in cash and options, and is expected to close in Cisco’s first fiscal quarter of 2005.

P-Cube has raised around $72 million in VC funding, including a $22 million Series B deal in 2000 at a post-money valuation of about $160 million, and a $40 million Series C deal in 2002 at a post-money valuation of approximately $86 million. P-Cube investors include Accel Partners, ComVentures, Evergreen Canada Israel Investments, Intel Capital, SingTel Ventures, Microdent Ltd., Rotonde Investments Ltd. and Venrock Associates.

Iridigm: $170M

Qualcomm Inc. (Nasdaq: QCOM) has agreed to acquire Iridigm Display Corp. a San Francisco-based provider of flat panel displays for mobile devices. Qualcomm will pay about $170 million in cash for the 86% of Iridigm that it does not already own and make Iridigm a wholly owned subsidiary.

Iridigm has raised more than $45 million from investors such as Qualcomm Ventures, DynaFund Ventures, Gabriel Venture Partners, Ideo Ventures, Intel Capital, New VentureTech, Steamboat VenturWes and Technology Associates Management Corp. In July, Gabriel Venture Partners co-led a $25 million Series B round that put principals Tim Chang and Vivek Mehra on the board.

MusicMatch: $160M

Yahoo Inc. (Nasdaq: YHOO) has agreed to acquire MusicMatch Inc., a San Diego-based provider of music software and services. The deal is valued at about $160 million in cash, and is expected to close next quarter. MusicMatch raised more than $33 million in funding since its 1997 inception, including a Series C infusion in 2001 at a post-money valuation of $80 million. Company investors included Redpoint Ventures, Intel Capital and Thomson Multimedia (a subsidiary of Thomson Corp., which publishes VCJ).

Opus: $130M

ArthroCare Corp. (Nasdaq: ARTC) has agreed to acquire Opus Medical Inc., a San Juan Capistrano, Calif.-based medical device company focused on arthroscopic rotator cuff repair technology. The deal is valued at about $130 million in cash, and also includes possible milestone payments based on Opus product revenue following the deal close.

Opus had raised around $24 million since its 1999 inception, including a $13.6 million infusion in 2003 at a post-money valuation of approximately $44 million. Company investors include Three Arch Partners and Prospect Venture Partners.

Foundstone: $86M

Anti-virus software maker McAfee Inc. (NYSE: MFE) has agreed to acquire Foundstone Inc., a Mission Viejo, Calif.-based provider of vulnerability management software. The deal is valued at $86 million in cash.

Foundstone has raised $17 million from investors OVP Venture Partners, Motorola Ventures, Riordan, Lewis & Haden and Wilson, Sonsini, Goodrich & Rosati.

The acquisition will add Foundstone’s line to McAfee’s growing list of security products. McAfee, in the past year, has focused its products on intrusion detection and prevention. Last year, McAfee paid $100 million to purchase IntruVert Networks Inc. and $120 million for Entercept Security Technologies Inc.

ManagedStorage: $85M

Front Porch Digital Inc. (OTC BB: FPDI) has agreed to acquire ManagedStorage International Inc., a Broomfield, Colo.-based provider of outsourced services for data protection and resource management. The all-stock deal is valued at about $39 million, and was expected to close in August.

ManagedStorage has raised over $85 million from investors Storage Technology Partners, JPMorgan Partners, Great Hill Equity Partners, EMC Corp., Wachovia Corp., Tudor Ventures and Providence Equity Partners.

Joyo.com: $75M

Amazon.com Inc. (Nasdaq: AMZN) has agreed to acquire Joyo.com Ltd., an operator of online retail sites targeting China. The deal is valued at about $75 million, including $72 million in cash and the assumption of employee stock options. The deal is expected to close later this quarter.

Joyo.com was founded in 2000, and has raised capital from Legend Capital and Softchina Venture Capital Corp.

BlueStar: $73M

Affiliated Computer Services Inc. (NYSE: ACS) has acquired BlueStar Solutions Inc., a Cupertino, Calif.-based provider of application management services. The deal is valued at $73 million in cash. BlueStar previously had raised more than $105 million in VC funding from investors Trident Capital, Dell Ventures, General Motors Pension Fund, MVC Capital and Osprey Ventures. ACS also held a minority stake in BlueStar, thanks to its participation in a $13.5 million Series B infusion in 2000 at a post-money valuation of approximately $165 million.

InnaPhase: $68.5M

Thermo Electron Corp. (NYSE: TMO) has acquired InnaPhase Corp., a Philadelphia-based provider of laboratory information management system software used by pharmaceutical and biotech companies. The deal was valued at $68.5 million in cash.

InnaPhase had raised more than $24 million in funding from LLR Partners, EclidSR Partners, Edison Venture Funds and NewSpring Ventures.

Coalescent: $60M

Medtronic Inc. (NYSE: MDT) has acquired Coalescent Surgical Inc., a Sunnyvale, Calif.-based developer of tissue-attachment devices for use in minimally-invasive surgery. The deal was valued at $60 million in cash, and closed on August 25.

Coalescent has raised over $65 million in funding since its 1997 inception, from investors Institutional Venture Partners, Liberty Venture Partners, Montreaux Equity Partners, Morgenthaler Ventures, SG Cowen Private Equity Group, Satellite Healthcare, Three Arch Partners and Walden International.

Dynamicsoft: $55M

Cisco Systems Inc. (Nasdaq: CSCO) has agreed to acquire Dynamicsoft Inc., a Parsippany, N.J.-based provider of carrier-class infrastructure solutions for packet-based wire-line and wireless communications networks. The deal is valued at approximately $55 million in cash, plus the assumption of around $3.8 million in outstanding debt.

Dynamicsoft has raised more than $70 million in funding since its 1998 inception, including a $40 million Series C infusion in 2000 at a post-money valuation of about $237 million. Investors included ComVentures, VantagePoint Venture Partners, UBS Capital, U.S. Bancorp Piper Jaffray, St. Paul Venture Capital, Sprout Group, Siemens Venture Capital and the New Jersey Technology Council.

Zycos: $50M

MGI Pharma Inc. (Nasdaq: MOGN) has agreed to acquire Zycos Inc. for $50 million in cash. Zycos is a Lexington, Mass.-based drug company focused on cancer and antiviral products.

It has raised about $48 million in funding, including a $30.4 million Series G infusion in 2000 at a post-money valuation of about $72 million. Company investors include Medical Science Partners, Calvon, Dresdner Kleinwort Benson, European Medical Ventures, Fujigin Capital Co., Lombard Odier Darier Hentsch, Integrated Health Care Investments, NMT New Medical Technologies, Viking Capital, WaldenVC and William Blair Capital Partners.

eMed: $48M

Cedara Software Corp. (Nasdaq: CDSW) has agreed to acquire eMed Technologies Corp., a Burlington, Mass.-based provider of picture archiving, communications systems and Web-based medical imaging radiology solutions. The transaction is valued at $48 million in cash.

EMed has raised about $42 million since its 1998 inception, including a $22 million infusion in 2000 at a post-money valuation of about $51 million. Investors included Delphi Ventures, Bedrock Capital Group, Bessemer Venture Partners, Boston Millennia Partners, CSFB Private Equity, Child Health Investment Co., Pacific Venture Group, Schroder Ventures Life Sciences, Seaflower Ventures and Zero Stage Capital.

Aesgen: $32M

MGI Pharma Inc. (Nasdaq: MOGN) has agreed to acquire all outstanding equity in Aesgen Inc. for $32 million in cash. Aesgen is a Princeton, N.J.based drug company focused on therapeutics for patients suffering from side effects of cancer treatment. It has raised more than $30 million since its 1995 inception from Medical Innovation Partners and Noro-Moseley Partners.

Vividence: $20M

Keynote Systems Inc. (Nasdaq: KEYN) has agreed to acquire Vividence Corp., a San Mateo, Calif.-based provider of customer research solutions. The deal is valued at about $20 million in cash, plus up to $6 million in additional milestone payments.

Vividence has raised more than $50 million in funding since its 1998 inception, including a $32 million Series D infusion in 2000 at a post-money valuation of approximately $235 million. Its investors include Kleiner Perkins Caufield & Byers, J&W Seligman & Co., Dain Rauscher Corp., Spring Creek Partners, Sequoia Capital, Accenture Technology Ventures and Partech International.

Altaworks

OPNET Technologies Inc. (Nasdaq: OPNT) has agreed to acquire Altaworks Corp., a Nashua, N.H.-based provider of e-business application management software. No specific terms of the all-cash transaction were disclosed.

Altaworks has raised more than $45 million since its 1999 inception from investors St. Paul Venture Capital, Prism Venture Partners, Primus Venture Partners and YankeeTek Ventures.

KnowlegeNet

The Thomson Corp. (NYSE: TOC) has agreed to acquire KnowledgeNet Inc., a Scottsdale, Ariz.-based provider of Web-based professional training services. No financial terms were disclosed.

KnowledgeNet has raised around $85 million in total VC funding since its 1998 inception, including a $17.5 million Series E infusion in 2002 at a post-money valuation of approximately $102.5 million. (Thomson is the parent of Thomson Venture Economics, which publishes VCJ.)