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RECENT DEALS

Monday, September 27, 2004; Page F10

MERGERS AND ACQUISITIONS

Danaher Corp., a maker of process and environmental control gear, will buy Trojan Technologies Inc., a Canadian company that designs, manufactures and sells UV systems for municipal wastewater and drinking water facilities, for about $185 million in cash. UBS advised Danaher, and Nassau Group advised Trojan.

Aether Systems Inc. of Owings Mills completed the sale of its transportation division to private equity firm Platinum Equity LLC for $25 million in cash.

_____Stock Quotes_____
Sallie Mae (SLM Corp) (SLM)
Danaher Corp (DHR)
United (AETH)
TeleCommunication Systems Inc., (TSYS)
Cogent Communications (COI)
Laureate Education, Inc. (LAUR)
YDI Wireless, Inc. (YDIW)

3i Systems Inc., a Blacksburg, Va., company that does work primarily for the federal government, was bought by Massachusetts employee-management firm Kronos Inc. Terms were not disclosed.

Definitive Technology Inc., an Owings Mills maker of speakers, was bought by California stereo-equipment seller Directed Electronics Inc. Directed Electronics is owned by private equity firm Trivest Partners LP. Terms were not disclosed.

Rocky Gorge Homes of McLean agreed to sell its assets to Hovnanian Enterprises Inc., a New Jersey home builder with extensive operations in the D.C. area. Details about the all-cash deal were not disclosed.

TeleCommunication Systems Inc., an Annapolis wireless data technology company, agreed to buy the assets of Kivera Inc., a California provider of mobile applications technology and services to wireless, directory assistance, emergency response, fleet, and logistics companies around the world. Terms were not disclosed.

Cogent Communications Group Inc., a Washington telecommunications company, bought the assets of Global Access, a German Internet service provider, including its office, network, data centers and customer base. Terms were not disclosed.

K-D Medical Inc., a private Columbia biotech firm, agreed to be bought by CalbaTech Inc., a life sciences company concentrating on providing products and platforms to the research market for biotech and pharmaceutical companies and to academic institutions. Terms were not disclosed.

Laureate Education Inc. of Baltimore, which offers undergraduate and graduate degree programs, said it bought the 49 percent of online school Walden University it didn't already own for about $85 million.

SLM Corp., the Reston student loan company known as Sallie Mae, bought a majority interest in Arrow Financial Services LLC, an accounts-receivable management company that purchases charged-off debt and does collections work. Terms were not disclosed.

Apptix ASA of Sterling bought Chicago Web-hosting company ASP-One Inc. for $3 million in cash and stock.

PRIVATE EQUITY

Tom Wheeler joined D.C. venture capital firm Core Capital Partners as a special partner, the private equity firm announced. Wheeler will look for technology investment opportunities and serve on the board of directors of selected portfolio companies. He is the former head of the Cellular Telecommunications and Internet Association.

Cangen Corp., a Bethesda biotechnology company working on diagnostic techniques for bladder cancer, sold $500,000 to a single investor in a Series D convertible preferred stock offering, according to a filing with the Securities and Exchange Commission. Cangen last month said it hired business lawyer Richard A. Silfen as its president.

Rannoch Corp., an Alexandria provider of enterprise-management technology used by airports, raised $3 million from two investors in an offering of Series A convertible preferred stock, according to a filing with the SEC. A Sept. 7 news release by Rannoch said venture firm Boulder Ventures Ltd. was the primary investor.

PUBLIC EQUITY

Educate Inc., a Baltimore provider of educational services, sold 15 million shares of common stock in an initial public offering at a $11 per share. Educate sold 5 million shares, and its existing stockholders, led by the private equity firm Apollo Management, sold 10 million shares. Apollo, which owned 34.3 million shares, or 91 of the company , sold 9.55 million for net proceeds of $97.7 million. Apollo bought Educate in leveraged buyout several years ago and had invested $125 million in Educate. Citigroup Inc. affiliate SSB Capital Partners (Master Fund) I LP sold 500,000 of its 1.6 million shares. The selling stockholders have granted the underwriters, led by Goldman Sachs Group Inc. and Merrill Lynch & Co., an option to purchase up to 2.25 million more shares to cover over-allotments. Educate will use the money to repay debt.

Davco Restaurants Inc. of Crofton, Md., a franchiser of Wendy's restaurants, said it would sell 8 million enhanced-income securities, a hybrid equity-debt security, for $14.50 to $15.50 per security. Privately held Davco had said in April it would sell up to $161 million of the securities in a public offering, but it had not set the terms. RBC Capital Markets Corp., KeyBanc Capital Markets, Oppenheimer & Co. and SunTrust Capital Markets Inc. are underwriting the deal. Most of the money will be used to redeem Davco shares owned by Citicorp Venture Capital Ltd.

Saxon REIT Inc., a Richmond mortgage investment banker, said its initial public offering of 17 million shares was priced at $22.75 per share in a deal led Friedman, Billings, Ramsey Group Inc. FBR and the co-managers Credit Suisse First Boston, J.P. Morgan Securities and Jefferies and Co. have the option to buy an additional 2.7 million shares to cover over-allotments.

YDI Wireless of Falls Church, which makes broadband wireless equipment, bought 4,183,183 shares of its common stock from Michael F. Young. The aggregate purchase price for this stock was $6.5 million.

Compiled by Terence O'Hara and Bloomberg News


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