Logical and Arsenal Get $10M Apiece, Constant Contact Acquires NutshellMail, Avila Gets $209M From Clovis, & More Boston-Area Deals News

5/26/10Follow @xconomy

Biotech companies occupied the majority of the deals news in the last week, but we also saw headlines on smaller transactions and acquisitions for some transportation, Internet, and software companies.

—Darien, CT-based Cytogel Pharma, a biopharmaceutical development firm, pulled in $2.2 million in equity and rights-based funding. The company, which aims to license drugs to ultimately sell to larger drug firms, is a portfolio company of Stamford, CT-based Centripetal Capital Partners.

—Terrafugia, the Woburn, MA-based company that’s out to make the first practical flying car (or “street legal airplane,” as the company prefers), raised $2 million in Series B funding. The money will go to development of Terrafugia’s next-generation vehicle, which will be publicly discussed in July, company CEO Carl Dietrich said.

—Watertown, MA-based biotech startup Arsenal Medical grabbed $10 million for the second tranche of its Series C financing, bringing the round’s total to $18.2 million. North Bridge Venture Partners, Polaris Venture Partners, and Durham, NC-based Intersouth Partners invested in the latest round for Arsenal, which was founded by MIT inventor Bob Langer and Genzyme (NASDAQ: GENZ) co-founder George Whitesides.

OurStage, a Chelmsford, MA-based company that promotes indie bands through online audience voting in monthly contests, nailed $2.63 million in a mixed offering of equity, options, and warrants, an SEC filing revealed. All told, the company has raised about $19 million, including $3 million in Series B money last year that came from a group of 100 angel investors and Portland, ME- and Austin, TX-based Signature Capital.

Diagnostics company LightLab Imaging was acquired by St. Jude Medical (NYSE: STJ), the St. Paul, MN-based cardiac devices giant, for about $90 million in cash. St. Jude is purchasing the Westford, MA-based company from Goodman Co., a Japanese medical devices firm that has owned LightLab since 2002.

—Waltham, MA-based Logical Therapeutics nabbed $10 million of a planned $16.9 million round, an SEC filing showed. The company, which is developing anti-inflammatory drugs that are safer on the stomach, didn’t disclose its backers for the most recent financing. SV Life Sciences, Burrill & Company, Novo A/S, Sigvion Capital, and PA Early Stage Partners were behind the $30 million the company raised in June 2007.

NormOxys, a Wellesley, MA-based drug developer, raised $17.5 million in a venture financing led by new investor Princeton, NJ-based Care Capital. The round also included NormOxys’ original backer, Switzerland-based Index Ventures. The money will go towardtesting of NormOxys’ drug for getting oxygen to deprived tissues in patients with chronic heart failure and cancer.

—Waltham, MA-based online marketing software maker Constant Contact (NASDAQ: CTCT) purchased NutshellMail, a Menlo Park, CA-based company that makes software enabling small businesses to monitor social networking sites, for an undisclosed sum. The company’s Bay Area office is expected to open later this year, and will be led by NutshellMail’s co-founders.

—Swaptree, a Cambridge, MA-based website for trading used books, DVDs, CDs, and video games, completed a $6 million financing from Safeguard Scientifics, and also hired a new CEO. In March, the company pulled in $4.8 million of the round, which will go toward new hires and marketing.

—Lightower Fiber Networks, a Boxborough, MA-based owner and operator of 4,500 miles of data-transporting fiber that stretches from New England to Long Island, announced it is acquiring Westford, MA-based Veroxity Technology Partners, which runs about 2,000 miles of fiber in New England and New York City.

T2 Biosystems, a Cambridge-based company that’s developing a portable diagnostic machine, raised $15 million in a deal led by Physic Ventures. Existing backers Flagship Ventures, Polaris Venture Partners, Flybridge Capital Partners, and Partners Healthcare also participated in the financing, which brings the company’s total pot to about $31 million.

—Waltham’s Avila Therapeutics announced it will bring in as much as $209 million by partnering with Boulder, CO-based Clovis Oncology to develop drugs to fight certain types of lung tumors. The companies didn’t disclose how much of the money comes in the form of upfront payments versus milestones for the agreement, in which Clovis will fund development and commercialization of Avila’s lung cancer drugs, and will pay to develop a diagnostic test for identifying patients who are likely to benefit from the drug.

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