Biofuels Firms Diversa, Celunol Merge

San Diego-based Diversa Corp. and Massachusetts-based Celunol said today that the firms have merged. The deal is worth approximately $154M in Diversa stock. The two firms are developing cellulosic ethanol production capabilities. According to the companies, Diversa will issue 15,000,000 shares of its stock to acquire the outstanding equity in Celunol, and will also provide $20M in debt financing to Celunol. Celunol is venture-backed by Khosla Ventures, Rho Capital Partners, Charles River Ventures and Braemar Energy Ventures. The new firm will be headquartered in Cambridge, Massachusetts.