By January 1999, Acorn Computers Ltd. had renamed to Element 14 Limited, this change was to reflect the changed nature of the business and to distance itself from the education market that Acorn Computers was most known for. Other names had been considered by the company, but the website e-14.com had been registered before the official announcement. 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. This situation led shareholders to press Acorn to sell its stake in ARM Holdings to provide a return on their investment. 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, which would give them two ARM Holdings shares for every five Acorn Group shares that they owned. The shareholders accepted and on 1 June 1999 Acorn Group plc was purchased by MSDW for. The transaction involved the delisting from the stock market of Acorn Group plc, as a result of which its shareholding in ARM was distributed to Acorn's shareholders. As part of the deal with MSDW, the STB division was to be sold to Pace Micro Technology for £209,000, and Stan Boland was given the option to lead a management buy out of the DSP business and on 26 July 1999, MSDW sold it for the net asset value of £1.5 million to them. The newly independent Element 14 set about raising venture capital and subsequently secured £8.25 million in first-round funding from Bessemer Venture Partners, Atlas Ventures and Herman Hauser's Amadeus Capital Partners. 's offices at Cambridge Science Park in 2011 In February 2000, Element 14 successfully head-hunted Alcatel's top digital subscriber line engineers, including designers of analogue front-end and digital ICs, xDSL modem software and specialists in asymmetric DSL and very high rate DSL 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. Element 14 developed IPTV over standard phone lines and worked with telcos such as Canada's NBTel. It continued to develop its DSP products until it was purchased by Broadcom Corporation in November 2000 for £366 million and Element 14 became Broadcom's DSL business unit.
