Element 14 (company) explained

Element 14 Ltd
Type:Private
Fate:Acquired
Predecessor:Acorn Computers
Successor:Broadcom
Foundation:[1]
Defunct:[2]
Key People:Stan Boland
Industry:Digital subscriber line

Element 14 Ltd was a British developer of digital subscriber line (DSL) equipment created in July 1999 from the disposal of the assets of Acorn Computers.[3] As "a three-site startup", it combined teams from Acorn, Inmos/STMicroelectronics and Alcatel.[4]

History

By January 1999, Acorn Computers Ltd. had renamed to Element 14 Limited to reflect the changed focus of the business and to distance itself from the education market that Acorn Computers was most known for.[5] [6] [7] Other names had been considered by the company, but the domain name e-14.com had been registered before the official announcement.[8]

During this time the ARM Holdings share value had increased to a point where the capital value of Acorn Group was worth less than the value of its 24% holding in ARM.[9] This situation led shareholders to press Acorn to sell its stake in ARM Holdings to provide a return on their investment.[9]

In May 1999, a deal was offered to Acorn Group plc shareholders by MSDW Investment Holdings Limited, a newly incorporated subsidiary of Morgan Stanley Dean Witter Group, in which the MSDW subsidiary would acquire Acorn by giving Acorn shareholders two ARM Holdings shares in exchange for every five Acorn Group shares being held.[10]

As part of the disposal of Acorn's assets, an independent company "owned by Stan Boland and certain senior management" were granted the option to purchase Acorn's silicon and software design activity for £1 million subject to obtaining external financing. This company was effectively the independent Element 14 entity,[11] which set about raising venture capital and subsequently secured £8.25 million in first-round funding from Bessemer Venture Partners,[12] Atlas Ventures[13] and Herman Hauser's Amadeus Capital Partners.[14]

In February 2000, Element 14 successfully head-hunted Alcatel's top digital subscriber line (DSL) engineers, including designers of analogue front-end and digital ICs, xDSL modem software and specialists in asymmetric DSL (ADSL) and very high rate DSL (VDSL) systems, and thereby acquired an engineering centre in Mechelen, Belgium. This reflected a shift towards the companies targeting of the DSP technology away from Media and towards DSL markets.[15]

Element 14 developed IPTV over standard phone lines and worked with telcos such as Canada's NBTel.[16] It continued to develop its DSP products until it was purchased by Broadcom Corporation in November 2000 for £366 million[17] and Element 14 became Broadcom's DSL business unit.[18] [19]

Notes and References

  1. Web site: Financial Statements for the Year Ended 31 December 1998 . Companies House . 25 July 2021 . 24 .
  2. Web site: Broadcom to pay $594M for European DSL supplier . Gain . Bruce . 4 October 2000 . . 11 May 2012.
  3. Web site: Broadcom acquires Element 14 . Wilson . Dave . 4 October 2000 . . 11 May 2012.
  4. Web site: Oral History of Sophie Wilson 2012 Computer History Museum Fellow . Computer History Museum . Fairbairn . Douglas . 31 January 2012 . 6 December 2022 .
  5. Web site: Acorn : Acorn and Element 14 - Questions and Answers.. 6 May 1999. dead. https://web.archive.org/web/19990506183321/http://www.acorn.co.uk/acorn/news/press/e14qa.html. 6 May 1999. dmy-all.
  6. News: Peter . Clarke . Acorn renamed, refocused as Element 14 . 1999-01-14 . . EE Times . 2011-06-08 . Acorn Computers Ltd. has changed its name to Element 14 Ltd. as part of its conversion from a computer designer and manufacturer to a developer of software and silicon intellectual property (IP). . dead . https://web.archive.org/web/20121003155747/http://www.eetimes.com/electronics-news/4037045/Acorn-renamed-refocused-as-Element-14 . 3 October 2012 . dmy-all.
  7. News: Mike . Santarini . Acorn reinvents itself as IP-vendor Element 14 . 1999-01-25 . . EE Times . 2011-06-08 . Acorn Computers Ltd. (Cambridge, England) has changed its name to Element 14 Ltd. as part of its conversion from a computer designer and manufacturer to a developer of software and silicon intellectual property (IP). . dead . https://web.archive.org/web/20121003155734/http://www.eetimes.com/electronics-news/4150183/Acorn-reinvents-itself-as-IP-vendor-Element-14 . 3 October 2012 . dmy-all.
  8. News: Acorn plans name change to reflect new ambitions . . 5 January 1999 . 3 December 2013 . dead. https://web.archive.org/web/20140610074204/http://www.highbeam.com/doc/1G1-53518116.html . 10 June 2014 . dmy-all .
  9. Web site: Ailing Acorn agrees to pounds 270m US takeover. 28 April 1999. independent.co.uk. live. https://web.archive.org/web/20160321151341/http://www.independent.co.uk/news/business/ailing-acorn-agrees-to-pounds-270m-us-takeover-1090136.html. 21 March 2016. dmy-all.
  10. Web site: Recommended Offer by Morgan Stanley & Co. Limited on behalf MSDW Investment Holdings Limited for the entire ordinary share capital of Acorn Group plc. marutan.net. dead. https://web.archive.org/web/20110723202501/http://marutan.net/wikiref/msdw/19990504%20-%20MSDW%20Recommended%20offer%20for%20Acorn.pdf. 23 July 2011. dmy-all. 14 January 2011.
  11. Web site: Acorn Group PLC - Preliminary Announcement of Audited Results for the Year Ended 31 December 1998. marutan.net. dead. https://web.archive.org/web/20110718122337/http://www.marutan.net/wikiref/msdw/19990427%20-%20Acorn%20audited%20results%20for%201998.pdf. 18 July 2011. 14 January 2011.
  12. Web site: Companies. https://web.archive.org/web/20110115221752/http://bvp.com/Portfolio/Element-14%28acq.byBroadcom%29.aspx. dead. 15 January 2011. www.bvp.com.
  13. Web site: Atlas coughs up $13m for Acorn spin-out. theregister.co.uk. live. https://web.archive.org/web/20170810092055/https://www.theregister.co.uk/1999/08/02/atlas_coughs_up_13m/. 10 August 2017. dmy-all.
  14. Web site: Element 14. https://web.archive.org/web/20101218194115/http://www.amadeuscapital.com/companies/element14.php. dead. 18 December 2010. www.amadeuscapital.com.
  15. http://www.electronicsweekly.com/Articles/2000/02/09/14651/Element+14+snatches+Alcatel+DSL+designers.htm Element 14 snatches Alcatel DSL designers
  16. News: From little Acorns, Element 14 grows . . 13 April 1999 . 10 April 2012 . Swift, Caroline . dead. https://web.archive.org/web/20121208005639/http://www.computeractive.co.uk/pcw/news/1925699/from-little-acorns-element-14-grows . 8 December 2012 .
  17. http://www.edn.com/article/CA50486.html Broadcom buys Element 14
  18. Web site: Broadcom acquires Element 14 - The Engineer The Engineer. theengineer.co.uk. live. https://web.archive.org/web/20120314015942/http://www.theengineer.co.uk/news/broadcom-acquires-element-14/285181.article. 14 March 2012. dmy-all.
  19. News: Bruce . Gain . Broadcom to pay $594M for European DSL supplier . 2000-04-10 . . EE Times . 2011-06-08 . Broadcom Corp. [...] agreeing to offer $594 million in stock [...] to purchase Element 14 Ltd. [...] . dead . https://web.archive.org/web/20121003155843/http://www.eetimes.com/electronics-news/4020095/Broadcom-to-pay-594M-for-European-DSL-supplier- . 3 October 2012 . dmy-all.

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