Racal

Racal Electronics plc

Company type	Public limited company
Industry	Electronics, defense, telecommunications
Founded	1950 (1950)
Founder	Raymond Brown, George Calder Cunningham
Defunct	2000 (2000)
Fate	Acquired by Thomson-CSF (now Thales Group)
Successor	Thomson-CSF Racal plc (later Thales plc)
Headquarters	Bracknell , United Kingdom
Area served	Worldwide
Key people	Ernest Harrison (Chairman), Gerry Whent (Telecoms project leader)
Products	Voice recorders, data logging devices, point of sale systems, scientific instruments, radio communications equipment, radar equipment, modems (Racal-Vadic), security products (Chubb)
Owner	Publicly traded until 2000 acquisition
Number of employees	Over 30,000 (At peak (date not specified))
Parent	Thomson-CSF (from 2000)

Racal Electronics plc was a UK-based electronics manufacturer established in 1950. It was publicly traded on the London Stock Exchange and formerly included in the FTSE 100 Index. Racal operated as a multifaceted enterprise, producing items such as voice recorders, data logging devices, point of sale systems, scientific instruments, and defense technologies including radio communications and radar equipment. At its height, it ranked as the third largest electronics company in Britain, employing over 30,000 individuals globally. Additionally, Racal was the original parent company of Vodafone before divesting the mobile network operator in 1991.

In the year 2000, Racal was taken over by Thomson-CSF (currently known as Thales Group), significantly expanding the French defense corporation’s presence in the UK market, a critical export region. Following this, in 2001, Racal Instruments Inc. separated from Thales through a leveraged buyout and subsequently became part of EADS North America Defense and Test Services Inc. in 2004. This entity was later acquired by Astronics Corporation in 2014. Today, the Racal name continues under Astronics Test Systems.

Foundation

Racal originated in 1950 under the name Racal Ltd, deriving its title from founders Raymond Brown and George Calder Cunningham.

One of the early employees was Ernest Harrison, who joined as employee number 13 initially working as an accountant, before progressing to roles including chief buyer, personnel director, and contract negotiator.

The company’s initial manufacturing site was located in Isleworth, Middlesex, before moving to Bracknell, Berkshire in 1954 under a favourable 99-year lease agreement. Although Racal secured a Royal Navy contract to produce a version of the American Collins Model 51-J receiver, licensing constraints compelled them to design their own receiver model. This resulted in the creation of the 'RA17', produced from 1955 through at least 1973, incorporating Trevor Wadley’s Wadley Loop circuit design—despite an initial overspend of £40,000 that nearly led to financial collapse.

Racal under Harrison

After joining Racal’s board in 1958, Harrison became deputy managing director in 1961 and played a pivotal role in securing a listing on the London Stock Exchange. He assumed the chairmanship in 1966 following co-founder Ray Brown’s departure to join the Ministry of Defence. During Harrison’s leadership, Racal accomplished numerous significant milestones:

• Won a British Army contract for battlefield radios (Larkspur/Clansman), securing long-term business
• Integrated British Communications Corporation to enhance its radio division
• Acquired Decca Radar in 1980 by outbidding competitor GEC
• Took over British Rail Telecommunications, laying groundwork for Racal Telecom
• Founded and later spun off Vodafone mobile network
• Avoided acquisition by Williams Holdings by divesting Chubb Locks
• Invested in Camelot Group, operator of the UK National Lottery
• Sold Racal Telecom to Global Crossing
• Disposed of remaining defense and industrial electronics units to Thomson-CSF for £1.3 billion

An initial investment of £1,000 made in Racal during 1961 would have appreciated to £14.5 million by Harrison’s retirement in 2000. It is reported that he personally earned £25 million from the sale that year and accumulated wealth estimated at £40 million.

Decca Radar

In 1979, Racal expanded its portfolio by acquiring Decca Radar, resulting in the formation of Racal-Decca. Its American operations were managed through the subsidiary Racal-Datacom.

Vodafone

In 1980, Harrison secured rights to GEC’s tactical battlefield radio technology, facilitating Racal’s entry into the commercial mobile radio market. This project was spearheaded by Gerry Whent, who oversaw military radio and visited GE’s manufacturing facility in Virginia.

Racal Strategic Radio Ltd secured one of the initial two cellular licenses issued in the UK in 1982, with British Telecom receiving the other. The network, branded as Racal Vodafone, officially commenced operations on 1 January 1985, with ownership divided as 80% Racal, 15% Millicom, and 5% Hambros Technology Trust. That same year, the company was renamed Racal Telecommunications Group Limited. By December 1986, Racal Electronics had acquired all minority shares for £110 million.

In 1988, a 20% stake of Racal Telecom was offered on the London Stock Exchange. By October 1991, Harrison orchestrated a demerger of Racal Telecom to maximize value for both companies. Vodafone grew to become the largest global mobile network and the most valuable company within the FTSE 100 index. Following this separation, Williams Holdings made a £740 million bid to acquire Racal Electronics, which was ultimately declined.

Racal Vadic

Racal marketed its modem products under the Racal-Vadic brand and was among the pioneers introducing 2400 baud modems during the early 1980s. The company also operated under the name Racal-Milgo.

Chubb Security

In 1984, Racal acquired Chubb, a firm specializing in security products such as safes and locks. Chubb was spun off from Racal in 1992 and subsequently acquired by Williams Holdings in 1997.

Racal Telecoms

Racal revitalized its telecommunications division by securing a significant government contract in 1988 and expanded further by purchasing British Rail Telecommunications in 1995, thereby gaining control over telecom infrastructure across the railway network.

Racal Instrumentation

This business unit encompassed Racal Recorders based in Hythe, Southampton, and Racal Instruments located in Burnham. After acquiring Thermionic Products in 1967, Racal established Racal Thermionics, which was rebranded as Racal Recorders in 1978 to manufacture magnetic tape recorders designed for multichannel voice and instrumentation purposes.

Racal Redac

Operating out of Tewkesbury, Gloucestershire, Racal Redac specialized in providing Computer Aided Design (CAD) software and services primarily focused on printed circuit board design.

National Lottery

In 1994, Camelot Group—partially owned by Racal with a 22.5% share—secured the franchise to operate the UK National Lottery. After acquiring additional shares from GTECH, Camelot’s ownership increased to 26.67%.

Break-up

Racal broadened its defence division in 1995 by purchasing Thorn Sensors Group from Thorn EMI. By 1998, all defence-related operations were unified under Racal Defence Electronics Ltd into three segments: Racal Radar Defence Systems, Racal Radio, and Racal Thorn.

In October 1999, the telecoms arm of Racal was sold to Global Crossing, an American communications company, for £1 billion.

In January 2000, Thomson-CSF acquired Racal to form Thomson-CSF Racal plc; this company later became part of Thales plc following Thomson-CSF's rebranding.

In December 2008, Esterline Technologies purchased Racal Acoustics Ltd and incorporated it into their Communications Systems division.

External links

• Official website of Thales Group