Engineering Research Associates - Legal Troubles and The Remington Rand Acquisition

Legal Troubles and The Remington Rand Acquisition

ERA looked to selling similar machines to a number of customers, but at about this time they became embroiled in a lengthy series of political maneuvering in Washington. Drew Pearson's Washington Merry-Go-Round claimed that the founding of ERA was a conflict of interest for Norris and Engstrom because they had used their war-time government connections to set up a company for their own profit. The resulting legal fight left the company drained, both financially and emotionally. In 1952 they were purchased by Remington Rand, largely as a result of these problems.

Remington Rand already had a computing division however, after they had purchased the Eckert–Mauchly Computer Corporation in 1950. For a time the two companies operated as independent units within Remington, with ERA focusing on scientific and military customers, while Eckert–Mauchly's UNIVACs were sold to business customers. However, in 1955 Remington merged with Sperry Corporation to become Sperry Rand. Both ERA and Eckert–Mauchly were folded into a single division as Sperry-UNIVAC. Much of ERA's work was dropped, while their drum technology was used in newer UNIVAC machines. A number of employees were not happy with this move and decamped to form Control Data Corporation under the leadership of Norris. Among them was Seymour Cray, who went on to design supercomputers and create Cray Computers.

But the core of the ERA team lived on. Eventually they were moved to a new research division where they had considerably more freedom. They worked primarily on computing systems for military use, and they pioneered a number of early command and control and guidance systems for ICBMs and satellites. There they were known as the Military Division, which was later renamed the Aerospace Division.