ISTEL
Encyclopedia
ISTEL, formerly BL Systems, and latterly AT&T Istel, was a British
information technology
company.
became the chairman of the new company, which, in addition to providing the computer resources and telecommunications services for the BL companies, gradually started to provide similar services for other outside companies. The company's headquarters were established in Redditch
and Coventry
. BL Systems pioneered many services, including the establishment of Europe's first microwave
communications network in the late 1970s and launched Comet (originally a US product) that in 1981 was Britain's first commercial electronic mail service. In 1984 the company's name was changed to ISTEL.
The new company name was said to have been chosen by Leighfield randomly by combining pairs of syllables that sounded vaguely related to systems, telecommunications, or technology until he hit upon one he liked the sound of.
In June 1987, Rover Group
(to which British Leyland had been renamed in 1986) sold ISTEL, in a management buyout
, to a consortium of its management and employees, and investors, led by John Leighfield, for £35 million.
In October 1989, ISTEL was sold to AT&T
for a significant profit and was renamed AT&T Istel. Latterly it was documented that in 1997 AT&T
quietly dropped the Istel name putting its finance, commerce, travel, and healthcare divisions up for sale. Customers included Citibank
, Delta Air Lines
, Barclays Bank, Texaco
, British Oxygen, Boots
and Post Office Ltd. The healthcare division was sold to Atlanta-based company HBO & Company. In 1998 the company's finance and banking division was sold off to Cap Gemini.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
company.
History
The company was formed in 1979 as BL Systems Limited (BLSL) through a merger of the computer departments of various automotive manufacturing companies brought together under the British Leyland (BL) umbrella. John LeighfieldJohn Leighfield
John P. Leighfield CBE is a British IT industry businessman and chairman of RM plc.John Leighfield was born in Oxford, England, and was a pupil at Magdalen College School...
became the chairman of the new company, which, in addition to providing the computer resources and telecommunications services for the BL companies, gradually started to provide similar services for other outside companies. The company's headquarters were established in Redditch
Redditch
Redditch is a town and local government district in north-east Worcestershire, England, approximately south of Birmingham. The district had a population of 79,216 in 2005. In the 19th century it became the international centre for the needle and fishing tackle industry...
and Coventry
Coventry
Coventry is a city and metropolitan borough in the county of West Midlands in England. Coventry is the 9th largest city in England and the 11th largest in the United Kingdom. It is also the second largest city in the English Midlands, after Birmingham, with a population of 300,848, although...
. BL Systems pioneered many services, including the establishment of Europe's first microwave
Microwave
Microwaves, a subset of radio waves, have wavelengths ranging from as long as one meter to as short as one millimeter, or equivalently, with frequencies between 300 MHz and 300 GHz. This broad definition includes both UHF and EHF , and various sources use different boundaries...
communications network in the late 1970s and launched Comet (originally a US product) that in 1981 was Britain's first commercial electronic mail service. In 1984 the company's name was changed to ISTEL.
The new company name was said to have been chosen by Leighfield randomly by combining pairs of syllables that sounded vaguely related to systems, telecommunications, or technology until he hit upon one he liked the sound of.
In June 1987, Rover Group
Rover Group
The Rover Group plc was the name given in 1986 to the British state-owned vehicle manufacturer previously known as British Leyland or BL. Owned by British Aerospace from 1988 to 1994, when it was sold to BMW, the Group was broken up in 2000 with the Rover and MG marques being acquired by the MG...
(to which British Leyland had been renamed in 1986) sold ISTEL, in a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
, to a consortium of its management and employees, and investors, led by John Leighfield, for £35 million.
In October 1989, ISTEL was sold to AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
for a significant profit and was renamed AT&T Istel. Latterly it was documented that in 1997 AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
quietly dropped the Istel name putting its finance, commerce, travel, and healthcare divisions up for sale. Customers included Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
, Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
, Barclays Bank, Texaco
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
, British Oxygen, Boots
Boots UK
Boots UK Limited , is a leading pharmacy chain in the United Kingdom, with outlets in most high streets throughout the country...
and Post Office Ltd. The healthcare division was sold to Atlanta-based company HBO & Company. In 1998 the company's finance and banking division was sold off to Cap Gemini.