View source for Racal

{{Short description|1950–2000 British electronics company}}
{{For|the personal protective suit|Racal suit}}
{{EngvarB|date=April 2018}}
{{Use dmy dates|date=April 2018}}
{{Infobox company
| name = Racal Electronics plc
| logo = Racal logo.svg
| type   = [[Public limited company]]
| fate = Acquired by [[Thomson-CSF]]
| foundation = {{start date and age|df=y|1950}} <br />(as Racal Ltd.)
| founder    = {{ubl|[[Raymond Frederick Brown|Raymond Brown]]|George Calder Cunningham}}
| key_people = [[Ernest Harrison|Sir Ernest Harrison OBE]] (chairman)
| defunct = 2000
| location = [[Weybridge]], United Kingdom
| successor = [[Thales Group|Thales plc]]
| industry= Electronics
}}
'''Racal Electronics plc''' was a British electronics company that was founded in 1950. Listed on the [[London Stock Exchange]] and once a constituent of the [[FTSE 100 Index]], Racal was a diversified company, offering products including [[voice recorders]] and data recorders, [[point of sale]] terminals, laboratory instruments and military electronics, including radio and radar. At its height it was the third largest British electronics firm; it operated worldwide and employed over 30,000 people at its height. It was the parent company of [[Vodafone]], before the mobile telephony provider was sold in 1991.
Racal was bought by [[Thomson-CSF]] (now called [[Thales Group]]) in 2000.<ref>{{Cite web|title=BBC News {{!}} BUSINESS {{!}} Thomson-CSF seals Racal deal|url=http://news.bbc.co.uk/2/hi/business/601877.stm|access-date=2020-07-14|website=news.bbc.co.uk}}</ref> The purchase was expected to roughly double the size of the French defence giant's operations in the UK, a country that already represented one of its biggest export markets in Europe.
In 2001, Racal Instruments Inc. became an independent company after a leveraged buyout from Thales. In 2004, it was acquired by EADS North America Defense and Test Services Inc., which was then acquired by [[Astronics Corporation]] in 2014. The Racal brand now resides with Astronics Test Systems, a wholly owned subsidiary of Astronics Corporation.
==Foundation==
Racal was created in 1950 as Racal Ltd, the name being derived from the names of the partners, [[Raymond Frederick Brown|Raymond Brown]] and George Calder Cunningham.<ref>{{cite web| url= http://www.skywaves.ar88.net/commrx/RACAL/RA17.htm | title = RA 17 | archive-url= https://web.archive.org/web/20130613130113/http://www.skywaves.ar88.net/commrx/RACAL/RA17.htm | archive-date= 13 June 2013 }}</ref>
[[Ernest Harrison]] joined the company as employee number 13 as an accountant,<ref name=TelgObit>{{cite web|url=https://www.telegraph.co.uk/news/obituaries/4781816/Sir-Ernest-Harrison.html|title=Sir Ernest Harrison|work=The Daily Telegraph|date=22 February 2009|access-date=29 June 2010|archive-url=https://web.archive.org/web/20121114130651/http://www.telegraph.co.uk/news/obituaries/4781816/Sir-Ernest-Harrison.html|archive-date=14 November 2012}}</ref><ref name=TimesObit>{{cite news|url=http://www.timesonline.co.uk/tol/comment/obituaries/article5761640.ece|title=Sir Ernest Harrison: chairman of Racal Electronics|work=The Daily Telegraph|date=18 February 2009|access-date=29 June 2010 | location=London}}{{dead link|date=September 2024|bot=medic}}{{cbignore|bot=medic}}</ref><ref name=GuardObit>{{cite news|url=https://www.theguardian.com/business/2009/feb/20/ernest-harrison-obituary|title=Sir Ernest Harrison|work=The Guardian|date=22 February 2009|access-date=29 June 2010 | location=London | first=David | last=Brewerton|archive-url=https://web.archive.org/web/20120329100621/http://www.guardian.co.uk/business/2009/feb/20/ernest-harrison-obituary|archive-date=29 March 2012}}</ref> but later held the positions of chief buyer, personnel director and contract negotiator.
The first factory was located in [[Isleworth]], [[Middlesex]]. On outgrowing this site it moved to [[Bracknell, Berkshire|Bracknell]], Berkshire in 1954, enticed by a 99-year lease at four shillings and sixpence per square foot – and no rent reviews.<ref name=Salbu>{{cite web|url=http://salbu.co.za/salbu/eth.html|title=Britain's High Priest of Shareholder Value|author=Jim Levi|publisher=salbu.co.za|access-date=29 June 2010|archive-url=https://web.archive.org/web/20120728034812/http://www.salbu.co.za/salbu/eth.html|archive-date=28 July 2012}}</ref>
Although Racal had won a [[Royal Navy]] contract to build and supply a variant of the American [[Collins Radio|Collins]] Model 51-J Radio Receiver, they were not granted a licence to build these sets by Collins Inc. This meant that Racal had to design and build a radio receiver from scratch. After almost bankrupting the company due to a £40,000 overspend,<ref name=Salbu/> the result was the 'RA17' – in production from 1955 to at least 1973 – designed in co-operation with [[Trevor Wadley]] and using his ''[[Wadley Loop]]'' circuit.<ref>{{cite web| url= http://televideo.ws/wadley.html | title = The Wadley Drift Cancelling Loop | archive-url= https://web.archive.org/web/20131208233902/http://televideo.ws/wadley.html | archive-date= 8 December 2013 }}</ref>
==Racal under Harrison==
Harrison joined the company board in 1958, and as deputy managing director from 1961 helped Racal to obtain a [[London Stock Exchange|Stock Market]] listing.<ref name=TimesObit/> Harrison became chairman in 1966, after co-founder Ray Brown was lured away by the [[Ministry of Defence (United Kingdom)|Ministry of Defence]].<ref name=TimesObit/> During his tenure, several major deals were achieved:<ref name="TelgObit" />
* Negotiation of a [[British Army]] battlefield radio contract (initially [[Larkspur radio system|Larkspur]], later part of [[Clansman (military radio)|Clansman]]) which secured the future of Racal
* The merger between Racal and [[British Communications Corporation]], that bolstered Racal's radio business
* Buying [[Decca Radar]] in 1980 against competition from [[General Electric Company|GEC]], the rival British company led by [[Arnold Weinstock|Lord Weinstock]]
* Buying the [[British Rail Telecommunications]] network, to form the basis of Racal Telecom
* Creating and spinning-out the [[Vodafone]] mobile phone network
* Stopping a proposed takeover by Williams Holdings by demerging [[Chubb Locks|Chubb]]
* Investing in [[National Lottery (United Kingdom)|National Lottery]] company [[Camelot Group]]
* Selling Racal Telecom to [[Global Crossing]]
* Selling Racal's remaining defence and industrial electronics divisions to [[Thomson-CSF]] of France for £1.3&nbsp;billion<ref>{{Cite web|title=BBC News {{!}} BUSINESS {{!}} Thomson-CSF seals Racal deal|url=http://news.bbc.co.uk/2/hi/business/601877.stm|access-date=2020-07-14|website=news.bbc.co.uk}}</ref>
Under Harrison, £1,000 invested in Racal in 1961 would have been worth £14.5{{Nbsp}}million when he retired in 2000. Harrison received an estimated £25&nbsp;million from the sale of Racal in 2000, and is estimated to have died with an accumulated total wealth of £40 million.<ref name=TimesObit/>
===Decca Radar===
In 1979, Racal bought [[Decca Radar]] forming Racal-Decca. Racal-Datacom conducted business in the United States.<ref>{{cite web| url= http://www.sperrymarine.northropgrumman.com/products/radars/#Sperry%20Marine%20Radar%20History | title = Sperry Marine | archive-url= https://web.archive.org/web/20120215213137/http://www.sperrymarine.northropgrumman.com/Products/Radars | archive-date= 15 February 2012 }}</ref>
===Vodafone===
{{main|Vodafone}}
In 1980, Harrison agreed a deal with [[Lord Weinstock]] of the [[General Electric Company]] to allow Racal to access some of GEC's tactical battlefield radio technology.{{Citation needed|date=December 2020}} Briefing the head of Racal's military radio division, [[Gerry Whent]], to drive the company into commercial mobile radio, Whent visited [[General Electric|GE]]'s factory in [[Virginia]], USA in 1980.<ref>{{cite web|url=http://www.electronicsweekly.com/Articles/2009/02/19/45500/obituary-sir-ernest-harrison.htm|title=Obituary: Sir Ernest Harrison|author=Richard Wilson|publisher=electronicsweekly.com|date=19 February 2009|access-date=29 June 2010|archive-url=https://web.archive.org/web/20100916224834/http://www.electronicsweekly.com/Articles/2009/02/19/45500/obituary-sir-ernest-harrison.htm|archive-date=16 September 2010}}</ref>
In 1982, Racal's newly formed subsidiary Racal Strategic Radio Ltd, under Whent, won one of the first two UK cellular telephone network licences; the other going to [[British Telecom]].<ref>{{Cite web|title=The invention of mobile phones|url=https://www.sciencemuseum.org.uk/objects-and-stories/invention-mobile-phones|access-date=2020-12-17|website=Science Museum|language=en}}</ref> The network, known as Racal Vodafone, was 80% owned by Racal, with [[Millicom]] having 15% and the [[Hambros Bank|Hambros Technology Trust]] 5%.  Vodafone was launched on 1 January 1985.<ref>{{cite news| url=http://news.bbc.co.uk/1/low/business/527754.stm |work=BBC News| title=The rapid rise of Vodafone | date=4 February 2000 | access-date=27 May 2010| archive-url=https://web.archive.org/web/20090415132539/http://news.bbc.co.uk/1/low/business/527754.stm | archive-date=15 April 2009 }}</ref> Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985.<ref name="sec">{{cite web|title=Vodafone Group Public Ltd Co|url=http://www.secinfo.com/d139r2.21Pc.b.htm|archive-url=https://web.archive.org/web/20140422024846/http://www.secinfo.com/d139r2.21Pc.b.htm|archive-date=22 April 2014|access-date=2 April 2007}}</ref> On 29 December 1986, Racal Electronics bought out the minority shareholders of Vodafone for £110&nbsp;million.<ref>{{cite news|first=Alison|last=Eadie|title=Racal pays £110&nbsp;million to own Vodafone|work=The Times|date=30 December 1986}}</ref>
In 1988, 20% of Racal Telecom was floated on the [[London Stock Exchange]].<ref>[http://findarticles.com/p/articles/mi_hb5037/is_198808/ai_n18322200 Upwardly mobile: Racal and Vodafone] The Economist, 1988</ref> This would lead to the situation where Racal Electronics was valued at less than its shareholding in Racal Telecom. Harrison demerged Racal Telecom in October 1991, forcing a positive valuation on the rest of Racal (colloquially known in the [[City of London]] as "the rump"). Vodafone would later become the largest mobile network in the world and the highest valued company on the [[FTSE 100]]. Immediately following the demerger, [[Williams Holdings]] launched a [[takeover]] bid for Racal. The bid, valued at £740m, failed.<ref>[http://www.faqs.org/abstracts/News-opinion-and-commentary/How-high-a-price-can-Racal-bring-Racal-effort-seen-to-avert-a-takeover-British-concerns-plans-includ.html How high a price can Racal bring?] ''The New York Times'', 1991 {{webarchive |url=https://web.archive.org/web/20111229132959/http://www.faqs.org/abstracts/News-opinion-and-commentary/How-high-a-price-can-Racal-bring-Racal-effort-seen-to-avert-a-takeover-British-concerns-plans-includ.html |date=29 December 2011 }}</ref>
===Racal Vadic===
The company marketed modems under the name Racal-Vadic,<ref>{{cite magazine
|magazine=PC Magazine  |publisher=Ziff-Davis |date=26 April 1988
|url=https://books.google.com/books?id=_woML1VTJcEC |title=Racal-Vadic}}</ref> and was among the first to offer 2400 baud modems in the early 1980s.<ref>{{cite news |newspaper=Computerworld |date=7 June 1982 |title=The VA440
|url=https://books.google.com/books?id=2LaqX2JB6_UC}}</ref> Another name it used was Racal-Milgo.<ref>{{cite web
|url=http://www.zypcom.com |title=Zypcom}}</ref>
===Chubb Security===
In 1984, Racal bought [[Chubb Locks|Chubb]], a security company that manufactured safes and locks.<ref>{{Cite web|url=https://www.theguardian.com/business/2003/apr/17/11|title=Chubb in takeover talks|last=Macalister|first=Terry|date=2003-04-17|website=the Guardian|language=en|access-date=2018-05-29}}</ref> In 1992, Chubb was demerged from Racal and was subsequently taken over by Willams Holdings in 1997.
===Racal Telecoms===
Racal re-established a telecoms division with a major government contract in 1988 and the acquisition of [[British Rail Telecommunications]] in 1995. This division of the former nationalised industry owned telecoms infrastructure laid across the rail network.
===Racal Instrumentation===
Consisted of Racal Recorders ([[Hythe, Hampshire|Hythe]], Southampton) and Racal Instruments (Burnham, near Slough). Racal acquired Thermionic Products in 1967, creating Racal Thermionics, renamed Racal Recorders in 1978.  Racal Recorders produced a wide range of magnetic tape recorders for multichannel voice recording and instrumentation recording applications.
===Racal Redac===
Provided Computer Aided Design (CAD) software and facilities, primarily for design of printed circuit boards; based at [[Tewkesbury]], Gloucestershire.
===National Lottery===
In 1994, [[Camelot Group]] – in which Racal had a 22.5% share – won the franchise to operate the [[UK National Lottery]]. After one of the founder shareholders, GTECH, was bought out by Camelot this stake increased to 26.67%.<ref>[http://news.bbc.co.uk/onthisday/hi/dates/stories/may/25/newsid_2502000/2502883.stm Camelot wins UK lottery race] BBC News, 25 May 1994 {{webarchive |url=https://web.archive.org/web/20121023215525/http://news.bbc.co.uk/onthisday/hi/dates/stories/may/25/newsid_2502000/2502883.stm |date=23 October 2012 }}</ref>
===Break-up===
In 1995, Racal expanded its defence businesses with the acquisition of the Thorn Sensors Group from [[Thorn EMI]].<ref>[http://www.janes.com/articles/Janes-Navy-International-95/RACAL-BUYS-THORN-EMI-SENSORS.html Racal buys Thorn Emi Sensors] Janes, 1995</ref> In 1998, all Racal's defence businesses were reorganised under Racal Defence Electronics Ltd into Racal Radar Defence Systems, Racal Radio and Racal Thorn.
In October 1999, Racal decided to sell its telecoms business to the American communications group, [[Global Crossing]], for £1bn.<ref>[http://news.bbc.co.uk/1/hi/business/the_company_file/471221.stm Racal sells telecoms division] BBC News (12 October 1999). Retrieved 20 January 2006 {{webarchive |url=https://web.archive.org/web/20030202061810/http://news.bbc.co.uk/1/hi/business/the_company_file/471221.stm |date=2 February 2003 }}</ref>
In January 2000, [[Thomson-CSF]] announced a bid for the company: Racal became '''Thomson-CSF Racal plc''', and later part of '''Thales plc''' with the renaming of the larger [[Thomson-CSF]] to [[Thales Group]].<ref>[http://news.bbc.co.uk/1/hi/business/601877.stm Thomson-CSF seals Racal deal] BBC News (13 January 2000) Accessed 20 January 2006 {{webarchive |url=https://web.archive.org/web/20030410000253/http://news.bbc.co.uk/1/hi/business/601877.stm |date=10 April 2003 }}</ref>
In December 2008, Racal Acoustics Ltd was acquired by [[Esterline]] Technologies, and has become part of their Communications Systems business.<ref>[http://www.esterline.com/NewsnbspPressCenter/tabid/208/EntryId/4300/Esterline-to-Acquire-UK-Based-Racal-Acoustics-a-Leading-Provider-of-Ruggedized-Military-Communications-Equipment.aspx Esterline to Acquire UK-Based Racal Acoustics, a Leading Provider of Ruggedized Military Communications Equipment] Esterline (22 Dec 2008). Retrieved 31 July 2018</ref>
== References ==
{{reflist}}
== External links ==
* [http://www.thalesgroup.com/ Thales Group website]
{{Thales Group}}
{{Authority control}}
[[Category:Racal| ]]
[[Category:Companies formerly listed on the London Stock Exchange]]
[[Category:Defunct networking companies]]
[[Category:Electronics companies of the United Kingdom]]
[[Category:Defence companies of the United Kingdom]]
[[Category:Electronics industry in London]]
[[Category:Electronics companies established in 1950]]
[[Category:Companies based in Surrey]]
[[Category:Thales Group]]
[[Category:Companies based in Bracknell]]
[[Category:1950 establishments in England]]
[[Category:History of telecommunications]]