Feeds

Broadcom eats Element 14

From mighty acorns little chips grow

  • alert
  • submit to reddit

Element 14, the bit of Acorn left after the veteran British company was dismembered for its ARM shareholding, has been bought by Broadcom for $594 million in shares.

Essentially, Element 14 is a chip design team rather than a company, with skills particularly in DSP and ADSL design. There are 68 employees, who own 40 per cent of the company - now worth $240 million.

In an interview with the FT, Stan Boland, Acorn CEO, said the valuation of the company is "very similar to what we would have received in an IPO". In which case, Broadcom is paying a huge premium for Element 14, considering that the company was not planning a flotation until the end of 2001, or the beginning of 2002. Typically, a company would expect a hefty discount in a trade sale - certainly it would not expect to pay the same price as retail investors 15-18 months down the line.

The transaction price represents a 25-fold jump in valuation on the company's imputed start-up capitalisation.

In August 1999, Element 14 won $13 million in funding from a bunch of VCs led by Atlas Ventures. This was described at the time as the largest amount ever secured for a European silicon start-up. ®

Related Stories

Atlas coughs up $13m for Acorn spin-ou
ARM denies role in Acorn dismemberment

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.