Sperry Corporation

Sperry Corporation was a major American technology and industrial company whose roots lay in navigation instruments and whose businesses eventually extended across aerospace, defense electronics, computing, office equipment, hydraulics, construction machinery, agriculture, and consumer appliances. It was founded in Brooklyn in 1910 by inventor Elmer Ambrose Sperry as the Sperry Gyroscope Company, initially to manufacture marine gyrostabilizers and gyrocompasses. The company’s early products addressed the increasingly technical requirements of naval and commercial navigation, while its aviation activities expanded rapidly during and after the First World War. Sperry became particularly influential through its use of gyroscopes and feedback-control technology in aircraft instruments. Its portfolio came to include artificial horizons, automatic pilots, bombsights, fire-control systems, airborne radar equipment, gun directors, and other systems designed to improve the accuracy and reliability of military aircraft and ships. A related company founded by Elmer Sperry’s son Lawrence competed in the aero-instrument field for a time, but the businesses were reunited after Lawrence Sperry’s death in 1923. In 1929, Sperry Gyroscope was acquired by North American Aviation; it returned to independence in 1933 as part of the newly organized Sperry Corporation, a holding company assembled around several engineering and industrial businesses. Military procurement made Sperry a significant defense contractor during the Second World War. The company produced advanced aircraft-navigation equipment, analog computing and bombing systems, radar-related devices, automated take-off and landing technologies, and the ball turrets installed on Boeing B-17 Flying Fortress and Consolidated B-24 Liberator bombers. Sperry ranked among the leading American corporations by the value of its wartime production contracts. In the postwar period, it used its expertise in control systems and electronics to enter digital computing. Its SPEEDAC computer, introduced in 1953, preceded the company’s later development of UNIVAC systems. A decisive corporate transformation occurred in 1955, when Sperry acquired Remington Rand and adopted the name Sperry Rand. The transaction brought the UNIVAC computer business into the group, including capabilities associated with the Eckert–Mauchly Computer Corporation and Engineering Research Associates. Sperry Rand became one of the most important American computer manufacturers and also remained a large military supplier. During the 1960s and 1970s, it operated a diversified conglomerate that included Sperry UNIVAC computers, Remington office machines and electric razors, Sperry New Holland agricultural and construction equipment, Vickers hydraulic equipment, and aviation and marine instrumentation. The company’s computing strategy included expansion into minicomputers and participation in the market for business and government data-processing systems. It also acquired or managed several specialized businesses and government-contract operations. In 1978, management began narrowing the corporate portfolio, selling or separating several industrial divisions and restoring the shorter name Sperry Corporation. The company nevertheless remained active in avionics, defense, marine navigation, and computers. Sperry’s independent existence ended after a prolonged takeover contest with Burroughs Corporation. On September 16, 1986, the two companies merged and created Unisys Corporation. Sperry had attempted to discourage the hostile bid through defensive measures, including a substantial increase in its share price, but Burroughs ultimately completed the transaction. Following the merger, former Sperry businesses were dispersed among companies including Honeywell, Loral, Ford, Tenneco, and other successors. The Sperry name continued in selected marine and aerospace businesses, but Sperry Corporation itself ceased to exist as an independe…

Sperry Corporation began as the Sperry Gyroscope Company, incorporated on April 14, 1910, by inventor Elmer Ambrose Sperry. Its first factory was located at 40 Flatbush Avenue Extension in Brooklyn, New York. The initial business centered on marine gyrostabilizers and gyrocompasses, technologies intended to improve the stability, direction-finding, and navigational accuracy of ships. The company’s engineering base soon supported a wider range of applications in aviation and military control systems. During the First World War, Sperry diversified into aircraft equipment, including bombsights and fire-control systems. Elmer Sperry’s son Lawrence developed competing aviation instruments through the Lawrence Sperry Aircraft Company, including an early automatic pilot. After Lawrence Sperry died in an air crash in 1923, the two businesses were reunited in 1924. North American Aviation acquired the company in January 1929, but the operation became independent again in 1933 when it was organized within the newly formed Sperry Corporation. The corporation functioned as a holding company for Sperry Gyroscope, Ford Instrument Company, Intercontinental Aviation, and other related businesses. Sperry’s core competence was the integration of gyroscopes, mechanical feedback, electronics, and control mechanisms. Its products included artificial horizons, autopilots, radio direction finders, radar-related equipment, bombsights, gun sights, and analog ballistic computers. It also supported the development and commercialization of klystron technology associated with Russell and Sigurd Varian. In 1937, the acquisition of Vickers expanded the company into hydraulics and industrial systems. World War II produced a major expansion in Sperry’s defense activities. The company manufactured sophisticated navigation and fire-control equipment, airborne radar systems, automated take-off and landing systems, and analog computer-controlled bombing equipment. It also developed the powered ball turrets installed beneath B-17 and B-24 bombers. Wartime production elevated Sperry into the ranks of the most important American military suppliers. After the war, Sperry expanded into electronics and computing. It produced SPEEDAC, its first digital computer, in 1953. The company also reorganized some aviation activities geographically: much of the gyroscope operation moved to Phoenix, Arizona, where it became associated with Sperry Flight Systems, while the traditional gyroscope organization remained at Lake Success, Long Island. A marine-focused facility opened in Charlottesville, Virginia, in 1956 and later became known as Sperry Marine. The most important corporate transaction in Sperry’s history came in 1955, when it purchased Remington Rand and became Sperry Rand. Remington Rand had brought together important computing assets, including the Eckert–Mauchly Computer Corporation and Engineering Research Associates. Their technology and personnel helped Sperry Rand develop the UNIVAC family, making the company a leading supplier of commercial, governmental, and military computers. Sperry Rand also retained Remington’s typewriters, office machines, and electric razors, while operating businesses in agricultural machinery, construction equipment, hydraulics, avionics, and marine systems. During the 1960s, Sperry Rand was a large and diversified public corporation. It faced a major antitrust case brought by Honeywell, with litigation extending from 1967 to 1973. In the 1970s, the corporation continued to sell UNIVAC mainframes and other electronic computers while maintaining industrial and consumer divisions. It acquired Varian Data Machines in 1977 to strengthen its presence in minicomputers. In 1978, management began a portfolio-concentration program, selling several divisions and returning to the name Sperry Corporation. The company later sold Vickers and acquired the Aircraft Radio Corporation from Cessna, reflecting a continuing effort to shape its industrial and aerospace holdings. Sperry’s final chapter was dominated by Burroughs Corporation’s takeover campaign. Burroughs chief executive Michael Blumenthal engineered a second hostile bid in 1986. Sperry attempted to resist, including through a major increase in its share price that made the acquisition more expensive and required Burroughs to raise additional financing. The bid nevertheless succeeded. On September 16, 1986, Sperry merged with Burroughs, and the combined company adopted the name Unisys Corporation. Sperry Corporation therefore ceased to exist as an independent entity. The former divisions were subsequently distributed among several successor companies. New Holland agricultural and construction businesses went to Ford Motor Company, while Sperry Marine was sold to Tenneco. Sperry Aerospace Group went to Honeywell and Sperry Defense Products Group went to Loral; related businesses later became associated with larger aerospace and defense groups. The Sperry name survived most visibly in Sperry Marine, which later became part of Northrop Grumman, and in the continuing technological lineage of its gyroscopes, avionics, marine-navigation systems, and defense electronics.

1. 1986Merger with Burroughs creates Unisys

   Burroughs completed its takeover of Sperry, and the merged company was renamed Unisys Corporation.

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2. 1983Vickers sold and Aircraft Radio Corporation acquired

   Sperry sold Vickers to Libbey Owens Ford and acquired Aircraft Radio Corporation from Cessna.

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3. 1978Return to the Sperry Corporation name

   The company sold multiple divisions, concentrated more heavily on computing, and dropped 'Rand' from its name.

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4. 1977Varian Data Machines acquired

   Sperry Rand acquired Varian Data Machines and entered the minicomputer market more directly.

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5. 1956Sperry Piedmont marine facility opens

   A dedicated marine-instrument plant opened in Charlottesville, Virginia; the operation later became Sperry Marine.

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6. 1955Remington Rand acquisition

   Sperry acquired Remington Rand and adopted the corporate name Sperry Rand, gaining the UNIVAC computer business.

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7. 1953SPEEDAC introduced

   Sperry produced its first digital computer, SPEEDAC.

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8. 1940Wartime defense expansion

   Sperry became a major supplier of aviation navigation, radar, bombsight, and fire-control systems during World War II.

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9. 1937Vickers acquisition

   Sperry acquired Vickers, expanding into hydraulics and related industrial equipment.

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10. 1933Sperry becomes independent within a new holding company

    Sperry Gyroscope returned to independent status as part of the newly formed Sperry Corporation.

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11. 1929North American Aviation acquisition

    North American Aviation acquired Sperry Gyroscope and reincorporated it in New York.

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12. 1924Sperry and Lawrence Sperry aviation businesses are reunited

    Following Lawrence Sperry’s death, the competing aviation-instrument businesses were brought together.

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13. 1915British Sperry Gyroscope company is established

    The British operation became Sperry Gyroscope Company Ltd and produced gyroscopic compasses for the Royal Navy.

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14. 1910Sperry Gyroscope Company is incorporated

    Elmer Ambrose Sperry incorporated the company in Brooklyn to manufacture marine gyrostabilizers and gyrocompasses.

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A high-technology engineering and defense contractor built around precision instrumentation, control systems, avionics, marine navigation, and electronic computing. During its conglomerate period, Sperry also positioned itself as a diversified supplier of business equipment, industrial machinery, and consumer appliances.

• Sperry Gyroscopic Navigation SystemsMarine and aviation instrumentation1910

  Sperry’s original and most enduring product family consisted of gyrostabilizers, gyrocompasses, artificial horizons, and related instruments. These systems used gyroscopic reference and control principles to support navigation and vehicle stability in ships and aircraft. They established the company’s reputation for precision engineering and provided the technical foundation for later autopilots, fire-control equipment, and avionics.

• Sperry Aircraft AvionicsAerospace and defense electronics

  The aircraft portfolio included automatic pilots, flight instruments, radio direction finders, radar-related equipment, automated take-off and landing systems, and other avionics. These products combined gyroscopes, electronics, feedback control, and navigation data to improve aircraft stability, situational awareness, and operational accuracy.

• Bombsights and Fire-Control SystemsDefense systems

  Sperry developed analog computer-controlled bombsights, gyro gunsights, gun directors, and other fire-control systems for military aircraft and ships. The systems calculated aiming and ballistic corrections and were designed to integrate mechanical, optical, electronic, and gyroscopic inputs. They were central to Sperry’s wartime defense business and its later reputation as a military systems contractor.

• Sperry Ball TurretAircraft defense equipment

  The Sperry ball turret was a powered, spherical gun turret mounted beneath several American heavy bombers, including the B-17 Flying Fortress and B-24 Liberator. Its compact rotating design provided a ventral defensive-firing position while protecting the gunner within an armored enclosure. The turret became one of the company’s best-known wartime hardware products.

• SPEEDACDigital computer1953

  SPEEDAC was Sperry’s first digital computer, introduced in 1953. It represented the company’s postwar move from predominantly mechanical and electromechanical instrumentation into electronic data processing. The system preceded Sperry’s larger and commercially more consequential UNIVAC computer activities.

• UNIVAC Computer SystemsMainframe and business computing1955

  Following the Remington Rand acquisition, Sperry Rand became the owner and developer of the UNIVAC computer business. UNIVAC systems served commercial companies, government agencies, and military users, making Sperry one of the major American computer manufacturers of the mid- and late twentieth century. The UNIVAC name also influenced the 'Unisys' name adopted after the 1986 merger with Burroughs.

• Sperry UNIVAC MinicomputersMinicomputers1977

  Sperry entered the minicomputer segment more directly after acquiring Varian Data Machines in 1977. The acquired operation was renamed the Sperry UNIVAC Minicomputer Operation and became part of the company’s broader computing organization, extending its range beyond large mainframe installations.

• Sperry Marine Navigation SystemsCommercial and naval marine systems1956

  Sperry’s marine business supplied navigation, communication, information, and automation systems for commercial shipping and naval customers. The marine activity originated in the company’s gyroscope and compass operations, was supported by a dedicated Charlottesville facility, and later continued under the Sperry Marine name after the parent corporation disappeared.

• Sperry New Holland EquipmentAgricultural and construction machinery

• 1986Resist and ultimately accept Burroughs’s takeoverM&A

  Burroughs Corporation pursued a hostile takeover of Sperry. The bid was engineered during Michael Blumenthal’s tenure as Burroughs chief executive and followed an earlier unsuccessful attempt.

  What changed. Sperry used defensive measures, including a major increase in its share price, but Burroughs completed the second takeover bid. The companies merged on September 16, 1986.

  Aftermath. The combined company was renamed Unisys Corporation, and Sperry Corporation ceased to exist. Several former Sperry divisions were subsequently sold to other industrial, aerospace, defense, and agricultural-equipment companies.

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• 1978Concentrate on computing and divest peripheral businessesStrategy

  Sperry Rand operated a broad conglomerate whose activities included computers, office machines, construction and agricultural equipment, hydraulics, avionics, and consumer products.

  What changed. Management sold several divisions, including Remington Rand Systems, Remington Rand Machines, Ford Instrument Company, and Sperry Vickers, and restored the name Sperry Corporation.

  Aftermath. The company became more visibly centered on computing, aerospace, defense, and related electronics, although substantial diversification remained until the 1986 merger.

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• 1977Acquire Varian Data MachinesM&A

  Sperry Rand wanted a stronger position in the minicomputer market, which was developing alongside the mainframe computer business.

  What changed. The corporation purchased Varian Data Machines and placed it within the Sperry UNIVAC organization.

  Aftermath. The acquired business became the Sperry UNIVAC Minicomputer Operation and expanded the company’s computing product range.

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• 1955Acquire Remington Rand and enter a broader computing marketM&A

  Sperry sought to broaden its aerospace and instrumentation base through a large industrial and technology combination. Remington Rand added office equipment, business machines, and important computer assets, including the UNIVAC business.

  What changed. Sperry acquired Remington Rand and changed its name to Sperry Rand.

  Aftermath. The transaction made Sperry Rand a major computer manufacturer and created a diversified conglomerate spanning defense, computing, office equipment, hydraulics, and machinery.

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• 1986Burroughs completes hostile takeover and merger with Sperry

  Burroughs Corporation completed a second hostile takeover bid, and the combined company was renamed Unisys Corporation.

  M&ALeadership change
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• 1978Sperry Rand refocuses on computing and restores the Sperry name

  The company sold several industrial and office-equipment divisions, concentrated more heavily on computing, and dropped 'Rand' from its corporate name.

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• 1977Sperry Rand acquires Varian Data Machines

  The acquisition gave Sperry Rand a route into the minicomputer market; the business became part of the Sperry UNIVAC organization.

  M&AProduct generation
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• 1967Honeywell antitrust litigation involving Sperry Rand

  Sperry Rand and Honeywell were involved in an extended antitrust dispute that continued through 1973 and concerned competition in the computer industry.

  LawsuitRegulation
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• 1955Sperry acquires Remington Rand and adopts the Sperry Rand name

  The acquisition added Remington office equipment and the UNIVAC computer business, significantly broadening Sperry’s technology and industrial portfolio.

  M&A
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• 1953Sperry introduces the SPEEDAC digital computer

  SPEEDAC marked Sperry’s entry into digital computing before the company’s later expansion through the UNIVAC business.

  Product launch
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• 1940Sperry becomes a major Second World War defense supplier

  Sperry supplied navigation, radar, bombing, fire-control, and automated flight systems and ranked among the largest American corporations by wartime contract value.

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• 1929North American Aviation acquires Sperry Gyroscope

  North American Aviation acquired Sperry Gyroscope, which later returned to independence as part of the 1933 Sperry Corporation structure.

  M&A
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• 1917Sperry expands into wartime aircraft and fire-control equipment

  The company diversified into aircraft components, bombsights, and fire-control systems as military demand increased during the First World War.

  Other
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• 1910Sperry Gyroscope Company is incorporated

  Elmer Ambrose Sperry incorporated the company in Brooklyn to manufacture marine gyrostabilizers and gyrocompasses.

  Other
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1. Sperry Corporation
2. A History of Sperry Rand Corporation