Thomson-CSF

Thomson-CSF was a French company that specialized in the development and manufacture of electronics with a heavy focus upon the aerospace and defence sectors of the market.

Thomson-CSF was formed in 1968 following the merger of Thomson-Houston-Hotchkiss-Brandt with the Compagnie Générale de Télégraphie Sans Fil (General Wireless Telegraphy Company, commonly abbreviated as CSF), these two companies being the source of the name Thomson-CSF. It operated as an electronics specialist on products such as broadcasting equipment, electroacoustics, shortwave radio sets, radar systems and television. During the 1970s, it began manufacturing backend telephony equipment, semiconductors and medical imaging apparatus. It also entered into large deals outside of the domestic market, acquiring considerable business in the Middle East.

During the late 1980s, Thomson-CSF, anticipating defence spending cutbacks, conducted a radical business restructuring, merging its semiconductor interests with those of the Italian defence group Finmeccanica and exchanging its medical imaging technology for General Electric's consumer electronics businesses. In the latter decades of operation, it built itself into a multinational corporation. During 1989, it acquired Philips' defence electronics business, Hollandse Signaalapparaten B.V. In 1999, the company was privatised, but not before divesting its consumer electronics businesses. Shortly after, it took over the British defence electronics company Racal Electronics.

In December 2000, Thomson-CSF was rebranded Thales Group.

Thomson-CSF traces its origins to the formation of the American business Thomson-Houston Electric Company by Elihu Thomson and Edwin Houston in 1879. On 15 April 1892, the Thomson-Houston Electric Company merged with its rival, the Edison General Electric Company, to form General Electric (GE). That same year, the company formed an overseas subsidiary, named Thomson Houston International, based in France. In 1893, Compagnie Française Thomson-Houston (CFTH) was established as a partner to GE. CFTH's operations centered around the application of GE's patents in the growing electricity generation and transmission industry. The modern Thomson companies evolved from this company.

In 1966, CFTH merged with armaments and vehicle manufacturer Hotchkiss-Brandt to form Thomson-Houston-Hotchkiss-Brandt, which was subsequently renamed Thomson-Brandt. Two years later, the electronics business of Thomson-Brandt merged with Compagnie Générale de Télégraphie Sans Fil (General Wireless Telegraphy Company, commonly abbreviated as CSF) to form Thomson-CSF. Prior to the merger, CSF had operated as a pioneer in the fields of broadcasting, electroacoustics, shortwave radio, radar systems and television. Thomson Brandt maintained a significant shareholding in the merged company (approximately 40%).

In the 1970s, Thomson-CSF received its first major contract in the Middle Eastern market. In this period the company diversified into several new sectors, leading to it manufacturing backend telephony equipment, semiconductors and medical imaging apparatus. By the early 1980s Thomson-CSF was in a weak financial position with a high level of debt. While it possessed a diversified portfolio of businesses, its market share within the majority of these many sectors was viewed as being too small to be realistically profitable despite increasing business from overseas buyers.

In 1982, both Thomson-Brandt and Thomson-CSF were nationalised by France's Mitterrand government. As a consequence, Thomson-Brandt was renamed Thomson SA (Société Anonyme) and merged with Thomson-CSF. Throughout the 1980s, the company's financial position improved dramatically as undertook a major reorganisation, focusing its efforts on the production of electronics for professional and defence customers.