Racal

Racal was a British electronics company founded in 1950 as Racal Ltd by Raymond Brown and George Calder Cunningham. Its name was formed from elements of the founders' names. Beginning with radio equipment, the company developed into one of Britain's largest and most diversified electronics groups, with activities in military communications, radar, telecommunications, data recording, instrumentation, computer-aided design, security systems and consumer-facing communications services. At its peak it employed more than 30,000 people, operated internationally and ranked among the major British electronics companies. The business established its first factory at Isleworth in Middlesex and moved manufacturing to Bracknell, Berkshire, in 1954. An early technical turning point came after Racal received a Royal Navy order connected with the Collins Model 51-J radio receiver but could not obtain a manufacturing licence. The company therefore designed its own receiver, the RA17, working with engineer Trevor Wadley and using the Wadley Loop circuit. Although development substantially exceeded its budget, the RA17 became an important product and remained in production for many years. Ernest Harrison, who joined Racal as its thirteenth employee, became one of the central figures in the company's history. After working in purchasing, personnel and contract negotiation, he joined the board in 1958, helped secure a stock-market listing in 1961 and became chairman in 1966. Under Harrison, Racal pursued acquisitions and government contracts that broadened the company beyond radio manufacturing. These included military battlefield radio work associated with the Larkspur and later Clansman systems, the acquisition of British Communications Corporation, the purchase of Decca Radar in 1979, and expansion into telecommunications and security. Racal's most commercially consequential venture was mobile telephony. In the early 1980s the company created Racal Strategic Radio and obtained one of the first two United Kingdom cellular network licences, alongside British Telecom. The resulting Racal Vodafone network began service in 1985. Racal initially retained a large majority stake and bought out minority shareholders in 1986. Vodafone was subsequently separated from Racal through a 1991 demerger, creating one of the most valuable telecommunications companies in the world and the best-known corporate legacy of the Racal group. During the 1980s and 1990s Racal continued to assemble and dispose of businesses. It acquired Chubb, marketed modems through Racal-Vadic and Racal-Milgo, operated recording and laboratory-instrumentation businesses, invested in Camelot Group, and acquired British Rail Telecommunications during the privatisation of British Rail. Its telecommunications and data-network activities included operation of the UK Government Data Network and communications services for government departments. At the same time, several divisions suffered from changing market conditions, particularly data communications, prompting restructuring and disposals. The group was progressively broken up in the late 1990s. Chubb was demerged, Racal Telecom was sold to Global Crossing in 1999, and the remaining electronics and defence businesses were acquired by Thomson-CSF in 2000. Thomson-CSF later became Thales, bringing most of Racal's remaining defence and electronics activities into the Thales group. Racal Instruments later became independent through a leveraged buyout and subsequently passed through EADS North America Defense and Test Services to Astronics Corporation. Racal Acoustics was acquired by Esterline Technologies in 2008. Racal therefore survives less as a unified corporation than as a historical brand and as names attached to successor businesses in specialist communications and test equipment.

Racal was formed in 1950 as Racal Ltd by Raymond Brown and George Calder Cunningham. The company's first premises were at Isleworth, Middlesex, but growth led to a move to Bracknell, Berkshire, in 1954. Its early business focused on radio engineering. After Racal obtained a Royal Navy contract connected with the Collins Model 51-J receiver but could not secure permission to manufacture the American design, it developed the RA17 receiver with Trevor Wadley. The receiver used the Wadley Loop principle and became a long-running product despite development costs that nearly exhausted the young company. Ernest Harrison joined Racal as employee number 13. Initially an accountant, he moved through purchasing, personnel and contract work before joining the board in 1958. He helped the company obtain a stock-market listing in 1961 and became chairman in 1966 after co-founder Raymond Brown moved to the Ministry of Defence. Harrison remained associated with Racal until its acquisition in 2000. During his chairmanship, the company won important military-radio work, including contracts related to the British Army's Larkspur and Clansman communication systems, and expanded through acquisitions and joint ventures. Racal strengthened its radio and defence position by combining with British Communications Corporation and buying Decca Radar in 1979. The group also built businesses in recording, instrumentation, data communications and computer-aided design. Racal Thermionics, later renamed Racal Recorders, produced magnetic tape recorders for voice and instrumentation applications. Racal-Vadic and Racal-Milgo supplied modems, including early 2400-baud products. Racal Redac developed computer-aided-design software and services for printed-circuit-board design. In 1984 the company acquired Chubb, extending its portfolio into safes, locks and security. The most important strategic decision in Racal's history was entry into commercial mobile communications. After exploring tactical-radio technology and commercial radio opportunities, Racal established Racal Strategic Radio in 1981. The subsidiary won a United Kingdom cellular licence in 1982, with British Telecom receiving the other initial licence. The network was branded Racal Vodafone and launched on 1 January 1985. Racal owned 80 percent at launch, with minority interests held by Millicom and Hambros Technology Trust. Racal bought out those minority shareholders in 1986, and a portion of Racal Telecom was floated in 1988. In October 1991 Racal Telecom was demerged, allowing Vodafone to develop independently and eventually become a major global mobile operator. Racal remained a substantial industrial group after Vodafone's separation. It re-established a telecommunications division after winning a contract to create and operate the UK Government Data Network. In 1994 it acquired British Rail Telecommunications as part of the British rail-privatisation process. The transaction transferred much of British Rail's voice, transmission and data infrastructure to Racal, while operational railway communications associated with train running remained outside the acquisition. Racal later provided communications services to more than 30 government departments. The acquisition was nevertheless criticised in contemporary discussion because of uncertainty over the responsibilities and assets transferred with the network. The 1990s brought restructuring and increasing pressure to simplify the portfolio. Racal's data-communications businesses experienced a sharp deterioration in profitability and were reorganised before being disposed of. Chubb was demerged in 1992 and later acquired by Williams Holdings. Racal also invested in Camelot Group, which won the franchise to operate the UK National Lottery in 1994. In 1995 Racal expanded its defence activities through the purchase of Thorn Sensors from Thorn EMI and later reorganised the defence portfolio into radar, radio and related units. By the end of the decade Racal was openly considering the sale or flotation of its telecommunications and defence activities. Racal Telecom was sold to Global Crossing in 1999. In January 2000 Thomson-CSF agreed to acquire the remaining Racal businesses, which were subsequently incorporated into the expanding Thomson-CSF and later Thales organisation. The sale ended Racal Electronics as an independent diversified group. Some specialist businesses continued under successor ownership: Racal Instruments became independent after a leveraged buyout in 2001, later moving through EADS North America Defense and Test Services and into Astronics Corporation, while Racal Acoustics was acquired by Esterline Technologies in 2008. The Racal name consequently persists mainly in specialist successor operations and historical references to the company that created Vodafone.

• 2000

  Racal is acquired by Thomson-CSF

  [1]Racalen.wikipedia.org

  The acquisition ends Racal Electronics as an independent corporate group.

• 1999

  Racal Telecom is sold

  [1]Racalen.wikipedia.org

  Global Crossing acquires Racal's telecommunications business.

• 1994

  British Rail Telecommunications is acquired

  [1]Racalen.wikipedia.org

  Racal acquires much of British Rail's communications network during rail privatisation.

• 1991

  Vodafone is demerged

  [1]Racalen.wikipedia.org

  Racal separates its telecommunications business, enabling Vodafone to operate as an independent company.

• 1985

  Racal Vodafone begins service

  [1]Racalen.wikipedia.org

  Racal's mobile network launches commercially on 1 January.

• 1982

  Racal wins a UK cellular licence

  [1]Racalen.wikipedia.org

  Racal Strategic Radio receives one of the first two United Kingdom cellular-network licences.

• 1979

  Decca Radar is acquired

  [1]Racalen.wikipedia.org

  Racal purchases Decca Radar and forms the Racal-Decca operation.

• 1961

  Racal obtains a stock-market listing

  [1]Racalen.wikipedia.org

  Ernest Harrison helps Racal become a publicly traded company.

• 1955

  RA17 receiver enters production

  [1]Racalen.wikipedia.org

  Racal begins production of the RA17, a receiver developed with Trevor Wadley after the company could not license the intended Collins design.

• 1954

  Manufacturing moves to Bracknell

  [1]Racalen.wikipedia.org

  Racal relocates production from Isleworth to Bracknell as the business expands.

• 1950

  Racal Ltd is founded

  [1]Racalen.wikipedia.org

  Raymond Brown and George Calder Cunningham establish the British electronics company.

Racal positioned itself as a technology-led British electronics group serving defence, government, industrial and communications customers. Its portfolio combined specialist engineering with large public-sector contracts, infrastructure ownership and acquisitive diversification. The brand became particularly associated with reliable radio and telecommunications systems, while the Vodafone venture gave it an enduring consumer and international profile.

• Radio receiver · 1955

  RA17

  The RA17 was Racal's independently developed radio receiver, created after the company was unable to obtain a licence to manufacture the Collins Model 51-J. Developed with Trevor Wadley and based on the Wadley Loop circuit, it became a technically significant early product and remained in production from the mid-1950s into the 1970s.

• Defence communications

  Racal military radio systems

  Racal supplied military radio and battlefield communications equipment to the United Kingdom and other customers. Its work included systems associated with the British Army's Larkspur and Clansman programmes, helping establish the company as a major defence-electronics supplier.

• Mobile telecommunications · 1985

  Racal Vodafone

  Racal Vodafone was the United Kingdom cellular network created by Racal Strategic Radio. It launched in 1985 and was initially majority-owned by Racal. The operation was separated from Racal in 1991 and became the foundation of Vodafone's later global expansion.

• Data communications

  Racal-Vadic and Racal-Milgo modems

  Under the Racal-Vadic and Racal-Milgo names, Racal marketed data modems and was an early supplier of 2400-baud modem equipment. These products formed part of the group's broader data-communications portfolio.

• Recording equipment · 1967

  Racal Recorders

  Racal Recorders produced magnetic tape systems for multichannel voice recording and instrumentation recording. The business originated in Racal's acquisition of Thermionic Products and served industrial, laboratory and communications applications.

• Electronic test and measurement

  Racal Instruments

  Racal Instruments supplied laboratory and electronic test equipment. After the Racal group was acquired, the business became independent through a leveraged buyout and later entered the ownership chain that led to Astronics Test Systems.

• Engineering software

  Racal Redac

  Racal Redac provided computer-aided-design software and related facilities, particularly for printed-circuit-board design. It represented Racal's expansion from physical electronics into engineering software and design services.

• 2000

  Accept Thomson-CSF acquisitionM&A

  Background

  Racal had already sold or separated several major divisions and was seeking a buyer for its remaining defence and industrial-electronics operations.

  Action taken

  Racal accepted Thomson-CSF's acquisition offer.

  Aftermath

  The company became Thomson-CSF Racal plc and was subsequently integrated into Thales.

  Source

• 1999

  Sell Racal TelecomM&A

  Background

  Racal was simplifying its portfolio and had considered both a sale and a stock-market flotation for its telecommunications division.

  Action taken

  It selected Global Crossing as the buyer for Racal Telecom.

  Aftermath

  The sale removed a major operating division before the remaining Racal businesses were acquired by Thomson-CSF.

  Reported sale consideration. £1 billion (1999)

  Source

• 1994

  Acquire British Rail TelecommunicationsM&A

  Background

  The privatisation of British Rail made its telecommunications infrastructure available for transfer to a private operator.

  Action taken

  Racal acquired the principal voice, transmission and data networks and renamed the business Racal-BRT.

  Aftermath

  Racal expanded its government and infrastructure communications business, although the scope of the acquired responsibilities was later criticised.

  Reported acquisition price. £132.72 million (1994)

  Source

• 1991

  Demerger of Racal TelecomStrategy

  Background

  Racal Telecom's market value had become large enough that Racal Electronics was valued below the value of its holding in the telecommunications subsidiary.

  Action taken

  Racal separated Racal Telecom from the parent group.

  Aftermath

  Vodafone developed independently, while the remaining Racal businesses faced a failed hostile bid from Williams Holdings.

  Source

• 1981

  Enter commercial mobile radioStrategy

  Background

  Racal sought to apply its radio-engineering capabilities beyond defence and traditional industrial communications.

  Action taken

  It created Racal Strategic Radio and pursued a United Kingdom cellular-network licence.

  Aftermath

  The strategy led to the launch of Racal Vodafone and ultimately created the Vodafone telecommunications business.

  Source

1. 1Racalen.wikipedia.org