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Deals of the day: Cerberus buying Safeway for $9.4 billion

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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March 7, 2014, 6:15 PM ET
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Venture Capital Deals

DigitalOcean, a New York-based cloud hosting service for developers, has raised $37.2 million in Series A funding. Andreessen Horowitz led the round, and was joined by seed backers CrunchFund and IA Ventures. www.digitalocean.com

Domain Surgical Inc., a Salt Lake City-based provider of ferromagnetic surgical tools, has raised $35 million in Series C funding. OrbiMed Advisors led the round, and was joined by return backer BioStar Ventures. www.domainsurgical.com

General Assembly
, a New York-based network of schools for digital business skills, has raised “over $35 million” in new VC funding. Institutional Venture Partners led the round, and was joined by GSV Capital, Rethink Education and Western Technology Investment. www.generalassemb.ly

Machinima
, a West Hollywood, Calif.–based YouTube network for gamers, has raised $18 million in new VC funding, according to Re/Code. Warner Brothers led the round, and was joined by return backers Google, MK Capital and Redpoint Ventures. www.machinima.com

Optio Labs
, a Nashville, Tenn.-based provider of security and productivity technologies for mobile and embedded systems, has raised $10 million in Series A funding led by parent company Allied Minds Inc. www.optiolabs.com

Polarion Software
, a San Francisco-based provider of an enterprise-scale browser-based ALM solution, has raised $10 million in Series A funding from Siemens Venture Capital. www.polarion.com

PrestaShop
, a Paris–based provider of free and open source e-commerce software, has raised $9.3 million in Series B funding. Backers include XAnge Private Equity, Seventure Partners and Serena Capital. www.prestashop.com

Emotient
, a San Diego-based provider of facial expression recognition solutions, has raised $6 million in Series B funding. Handbag LLC led the round, and was joined by return backer Intel Capital. The round officially closed in December, but only was announced this morning. www.emotient.com

Redlen Technologies
, a Canadian maker of semiconductor radiation detectors, has raised C$5.5 million in new VC funding. Pangaea Ventures led the round, and was joined by return backers like In-Q-Tel. www.redlen.com

Private Equity Deals

Cerberus Capital Management has agreed to acquire supermarket chain Safeway (NYSE: SWY) for approximately $9.4 billion, and then merge it with existing Cerberus portfolio company Albertsons. Safeway shareholders would receive $40 per share (1.3% premium to yesterday’s closing price), which includes $32.50 in cash and $3.65 in other distributions. The combined company would have more than 2,400 grocery stores and more than 250,000 employees. www.safeway.com

Audax Group has acquired Curt Manufacturing, an Eau Claire, Wis.-based maker of hitch and towing products, from Pfingsten Partners. No financial terms were disclosed. www.curtmfg.com

The Gores Group and Technology4Medicine have completed their previously-announced acquisition of a controlling interest in Fotona, a Slovenian manufacturer of lasers for medical, dental and aesthetic applications. No financial terms were disclosed, except that Los Angeles-based Gores is doing the deal via its small-cap fund. www.fotona.com

Mobile Technologies Inc.
, a portfolio company of Hammond, Kennedy, Whitney & Co., has acquired ArmorActive Inc., a Salt Lake City-based provider of tablet accessories and enclosures for business applications. No financial terms were disclosed. www.mobiletechinc.com

Trafficware Group Inc
., a Sugar Land, Texas-based portfolio company of KRG Capital Partners, has acquired PSI Acquisition LLC, a Salem, Ore.-based maker of intelligent traffic solutions like conflict monitors. No financial terms were disclosed. www.trafficwareinc.com

IPOs

Aquinox Pharmaceuticals Inc., a Vancouver-based developer of cancer and inflammation drugs, raised $46 million in its IPO. The company priced 4.2 million shares at $11 per share (middle of $10-$12 range), for an initial market cap of approximately $105 million. It will trade on the Nasdaq under ticker symbol AQXP, while Jefferies and Cowen & Co. served as lead underwriters. Shareholders include Ventures West (25.8% pre-IPO stake), Johnson & Johnson Development Corp. (23.8%), Baker Brothers (12.9%), Pfizer Inc. (16.5%), Augment Investments (8.1%) and BC Advantage Fund (7.3%).www.aqxpharma.com

Coupons.com Inc.
, a Mountain View, Calif.-based provider of digital coupons, raised $168 million in its IPO. The company priced 10.5 million shares at $16 per share, compared to plans to offer 10 million shares at between $12 and $14 per share. It has an initial market cap of approximately $1.16 billion. Coupons.com will trade on the NYSE under ticker symbol COUP, while Goldman Sachs, Allen & Co., BofA Merrill Lynch and RBC Capital Markets served as lead underwriters. It had raised over $230 million in VC funding from Passport Ventures (22.56% pre-IPO stake), T. Rowe Price, Abu Dhabi Investment Council and Greylock Partners. www.coupons.com

Q2 Holdings Inc.
, an Austin, Texas-based provider of cloud-based virtual banking solutions, has set its IPO terms to 7.76 million shares being offered at between $11 and $13 per share. It would have an initial market cap of approximately $383 million, were it to price in the middle of its range. The company plans to trade on the NYSE under ticker symbol QTWO, with J.P. Morgan and Stifel serving as lead underwriter. It reports an $11 million net loss on $41 million in revenue for the first nine months of 2013, compared to a $6 million net loss on $29 million in revenue for the year-earlier period. Shareholders include Adams Street Partners (37.6% pre-IPO stake) and Battery Ventures (18.5%).www.q2ebanking.com

Quotient Ltd.
, a UK-based provider of transfusion diagnostics solutions, has filed for a $75 million IPO. It plans to trade on the Nasdaq under ticker symbol QTNT, with UBS, Baird and Cowen & Co. serving as lead underwriters. Galen Partners holds a 51.3% pre-IPO stake in the company.www.quotientbd.com

Recro Pharma Inc.
, a Malvern, Penn.-based developer non-opioid therapeutics for the treatment of post-operative pain, raised $30 million in its IPO. The company priced 3.8 million shares at $8 per share, compared to original plans to offer 2.5 million shares at between $10 and $12 per share. The pre-revenue company will trade on the Nasdaq under ticker symbol REPH, while Aegis Capital served as lead underwriter. Shareholders include SCP Vitalife. www.recropharma.com

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