Venture capital deals

Interactions Corp., a Franklin, MA-based provider of conversational virtual assistant applications for customer service, has raised $40 million in new VC funding. SoftBank Capital led the round, and was joined by return backers Sigma Partners, Sigma Prime Ventures, RED LLC, Cross Atlantic Capital Partners, North Hill Ventures and Updata Partners. www.interactions.net

Skyhigh Networks, a Cupertino, Calif.-based provider of cloud visibility and control solutions, has raised $20 million in Series B funding. Sequoia Capital led the round, MORE

Pre-Marketing: Too big to jail?

* Brad Stone: Inside Google's secret lab

* Untested: Why does DoJ believe "too big to jail?"

* Irish finance minister: We will not be U.S. "whipping boy"

* Morning Call: Global shares stumble on Bernanke comments

* No ceremony: How Congress quietly undid its insider trading rules

* Duane Stanford: Herbalife's CEO fights back

* DoE joy: Tesla pays back loan early

* Be your own Tim Cook: How to dodge taxes like Apple

* An actual job: Helping hedge funders MORE

New York City loses its private equity boss

Head of NYC private equity investments heads to private firm in which NYC pension invested.

FORTUNE -- Yesterday came news that Barry Miller had stepped down as head of private equity investments for the New York City Employee Retirement Systems (NYCERS), in order to open a New York City office for Connecticut-based private equity firm Landmark Partners.

My immediate reaction: Is this a conflict of interest, given that NYCERS had just committed $400 million MORE

How much did Tumblr's VCs really make?

Reports of VC returns on Tumblr have been greatly exaggerated.

FORTUNE -- Yesterday there were several news reports about how Union Square Ventures had generated a "5,000% return" on its early investment in Tumblr, based on data from research firm Privco. They also claimed that Spark Capital's Bijan Sabet made $77 million for himself, in addition to whatever carry he's entitled to as a partner in the Spark Capital fund that invested alongside USV.

In MORE

Pre-Marketing: Public company, public tax filing?

* Alex Mayyasi: Food truck economics

* Matt Wirz: Beware of the covenant bubble

* David Beisel: Debunking 7 conventional VC wisdom

* Felix Salmon: Public companies should have public tax filings

* David Kirkpatrick: Class warfare knives coming for tech plutocrats

* Morning Call: U.S. futures climb, Europe retreats and Japan jumps.

* Top chef: 3D printed food?

* Academia: Alternative marketing for alternative investments?

* How dare you? "Netflix adultery" affects half of all relationships

* Unprecedented: Town wipes its hands MORE

MyWebGrocer is in acquisition talks

Private equity firm circles grocery ad network.

FORTUNE -- Private equity firm Huntsman Gay Global Capital is in talks to acquire a control stake in MyWebGrocer, a SaaS-based e-commerce and marketing platform for grocery store chains and packaged goods companies.

No word yet on financial terms, although Huntsman Gay typically invests between $25 million and $100 million into companies with revenue north of $100 million and EBIDTA of at least $15 million. MORE

M&A and IPOs

Iron Mountain Inc. (NYSE: IRM) has acquired Information Storage Consolidation Co., a Carrollton, Texas-based records storage business, from Graycliff Partners. No financial terms were disclosed. www.isccllc.com

Kohlberg Kravis Roberts & Co. has sold its remaining A$260 million stake in Australian television network operator Seven West Media Ltd. (ASX: SWM). www.kkr.com

Novo AS has acquired Xellia Pharmaceuticals, a Norway–based developer of anti-infective therapies, for approximately $700 million. Sellers include 3i Group and European Capital. www.xellia.com

Charlie Ergen, chairman of Dish Network (NYSE: DISH), has bid $2 billion for wireless "L-band" MORE

Private equity deals

The Blackstone Group has offered to acquire Pactera Technology International Ltd. (Nasdaq: PACT), a China-based provider of global consulting and technology services, for approximately $680 million, or $7.50 per share (43% premium to Friday's closing price). Significant Pactera shareholders include GGV Capital (7% stake). www.pactera.com

The O'Gara Group, a Cincinnati-based provider of global security and defense products and services for use in counter-terrorism, has acquired the armored vehicle and transparent armor businesses ofBAE Systems (LSE: BA). MORE

Venture capital deals

Adaptive Planning, a San Francisco-based provider of SaaS solutions for enterprise performance management, has raised $45 million in fourth-round funding. Bessemer Venture Partners led the round, and was joined by return backers Onset Ventures, Norwest Venture Partners, RBC Venture Partners, Cardinal Venture Capital and Monitor Ventures. It previously raised around $40 million.www.adaptiveplanning.com

Swipely, a Providence, R.I.-based payment solution for local merchants, has raised $12 million in Series B funding. Shasta Ventures led the round, and MORE

Gabriel Gomez's private equity deal

U.S. Senate candidate's investment performance.

FORTUNE -- Massachusetts voters are one month away from deciding whether or not former private equity investor Gabriel Gomez should be their next U.S. Senator, in a special election to succeed John Kerry.

To be sure, the ultimate decision won't be based much on what Gomez did, or didn't, do in his eight-plus years with Advent International. In fact, you wouldn't even know Gomez was involved in MORE