While a deal for Gil Amelio to take the reins at an upstart Irvine technology company has fallen through, the former Rockwell International Corp. executive still plans to return to Orange County,this time for Bay area venture capital firm Sienna Ventures.
Amelio,best known as the former Apple Computer Inc. chief executive who was ousted by founder Steve Jobs,has signed a contract to be the senior partner based in Southern California for Sienna, which manages about $125 million in assets.
“I am really more interested in venture capital,” Amelio said. “I am interested in doing more hands on work, nurturing, mentoring and guiding young companies.”
Amelio said he plans to lease office space in OC but hasn’t settled on a location. He has bought a house in Corona del Mar and also will keep a San Francisco apartment.
Amelio has sought to move back to OC for some time and had looked for a company to do a deal with when he came across Advanced Communications Technologies Inc. in October 1999.
In February, Amelio struck a deal that ended with his San Francisco-based venture capital firm Beneventure Capital being acquired by Advanced Communications. Amelio also was set to lead the combined company.
Advanced still plans to buy some Beneventure assets, but Amelio says he’s no longer part of the deal. He declined to comment specifically on the details, except to say that it simply wasn’t a good fit.
“There was a letter of understanding that my move was subject to due diligence,” Amelio said. “We found we would not likely be able to consummate the deal,they might want an alternate partnership. But it’s all very friendly between us.”
Amelio said he plans to run Beneventure until all the firm’s funds liquidate.
Executives at Advanced Communications were excited at the time Amelio was thinking of moving to the firm, citing his extensive contacts as one of the main reasons they wanted to acquire Beneventure. After Amelio’s move, Advanced Communications had planned to employ about 100 people in Irvine and pull out 16,000 square feet of office space, about 10 times the small office the company currently has, according to company executives.
Advanced Communications officials weren’t available to comment on Amelio’s decision not to come to the company.
Amelio had taken so long to do a deal with Advanced Communications because he wanted to raise a larger fund, he said. Though Amelio wanted to do a deal last year, the tumbling stock market for new issues left Beneventure in a stalemate.
Amelio’s firm has built up its portfolio to include Internet systems integrators and software makers,companies that had excited Advanced Communications executives.
Companies like Advanced Communications, which makes wireless communications gear that purports to bypass technology developed by Qualcomm Inc., still interest Amelio. While he says Sienna will invest in companies anywhere, he will specifically be looking for promising upstarts in Southern California.
“Our sense of this is that there are burgeoning deals in the south. We’re looking at being in disruptive technologies,” said Amelio, adding that 80% of Sienna’s funds are in communications and 20% in other technologies such as Internet security.
In addition to his stint as head of Rockwell’s semiconductor unit,predecessor of Newport Beach-based Conexant Systems Inc.,Amelio has invested in several startups here, including Internet software venture Themeware Corp.
Amelio also was chief executive of National Semiconductor Corp.
In his most well-known role, Amelio headed Apple Computer when the company acquired NeXT Software and brought back founder Steve Jobs, the company’s current chief executive. Apple’s board forced Amelio to resign in 1997 in favor of Jobs.
Sienna has invested in companies such as Redwood City-based OpenWave Systems Inc., formerly Phone.com, Irvine-based Autobytel.com Inc. and Norwalk, Conn.-based Priceline.com Inc.
Amelio plans to split his time between OC and the Bay area as he manages Beneventure’s and Sienna’s investments, he said. n
