The RAD Group is a collection of independent companies that develop, manufacture and market solutions for diverse segments of the networking and telecommunications industry.
Each company operates independently, without a holding company, but is guided by the group founders under a collective strategic umbrella. Companies share technology, engage in joint marketing activities and benefit from a common management structure.
Five RAD Group companies are traded on the Nasdaq Stock Market in the U.S.: RADVISION, Ceragon Networks, Radware , RADCOM, and Silicom. The others are privately held by the Group's founders and several venture capital firms.
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Rad Group was founded by brothers Yehuda (born 1942) and Zohar (born 1949), in Tel Aviv, Israel. Both brothers studied electronics engineering at the Technion – Israel Institute of Technology. Yehuda started his career in the 1960s working for Motorola Israel but in 1973 decided to start his own business importing and distributing computer networking equipment, a company called Bitcom. Later Yehuda parted company with his initial business partner and started a new company Bynet. The company’s main business was distributing Codex Corporation’s products, the company soon became a market leader in Israel. In 1977 Codex Corporation was acquired by Motorola, but due to its success Bynet maintain the distribution rights for its products; however in 1981 Motorola decided not to renew the distribution agreement with Bynet and sell the former Codex Corporation’s in Israel directly.[1]
The experience of losing the distribution rights of Codex made Yehuda realise that his business should never relay on one product line; and in 1981 he asked his brother Zohar to join him at Bynet to start working on the development of their own products. They started a new company at one corner of the Bynet offices and gave it the name RAD (which simply stood for Research And Development).[1]
RAD first successful product was a miniature (in 1980’s standards) computer modem. The product quickly became a commercial success, and by 1985, RAD annual revenues reached $5.5 million USD. This initial product line has evolved into RAD Data Communications, the largest company within the RAD Group.[1]
In 1985 RAD provided initial funding and support to entrepreneur Benny Hanigal to start LANNET Data Communications; which developed a pioneering Ethernet switch; one of the first to offer Ethernet switching over simple twisted pair telephone cables rather than expensive coaxial cables. In 1991 LANNAT had an initial public offering on NASDAQ, but in 1995, as their market was consolidating, it was decided to merge with Madge Networks, in a deal valuing LANNET at $300 million USD.[2]
By the end of 1995, the merged Madge-Lannet contained some 1,400 employees and achieved revenues of more than $400 million, but throughout 1996-7 there were disagreements about strategy a product developed between the former management teams of both companies; Benny Hanigal left the company and joined the Israeli Venture Capital fund Star Ventures. In late 1997 Madge Networks spun off its Ethernet division into a separate subsidiary, once again named LANNET; and then sold it to Lucent Technologies for $117 million in July 1998.[3]
During the 1990s the RAD Group was involved in establishing 12 different technology companies, some became publicly listed companies on NADSAQ and some were later sold to other companies. The group typically has a similar approach for starting new ventures; a business idea of an entrepreneur (an existing company employee or an outsider) or from the company’s management team, forms the basis of a Startup company. Initial funding is provided by the company together with other Venture Capital funds. In this way companies such as: RADCOM was established in 1990 and received funding from Star Venture and Pitango Venture Capital funds.[4] and RADvision in 1992, which was founded by Ami Amir and Eli Doron and received external funding from Evergreen and Clal venture capital funds, as well as from Siemens.[5]
RAD Group companies have won many awards including the Business Red Herring, Internet Telephony Conference "Best in Show", Editor's Choice Awards from several Industry Magazines like Network Computing Magazine. RAD Group also sponsors RAD University and Protocols.com leading student sites for network and computer science information and reference materials.
Zohar Zisapel is often called the "Bill Gates" of Israel (references: CNN Money article; Innovations Publishing article). Zohar had this to say about the main goals of the RAD Group:
“The RAD Group’s decentralized approach maximizes the advantages inherent in smaller business units - such as flexibility and entrepreneurial spirit - while allowing member companies to share mutually beneficial developments and fostering innovations.”
The RAD Group consists of 14 companies, six of which are traded on the Nasdaq Market. The group total revenues in 2008 were $850 million.
Former members of the RAD Group include:
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