Cerillion’s journey from telecoms division to half-billion-dollar company

Cerillion began as the telecoms products division of Logica and has since evolved into a half-billion-dollar publicly listed company. Over the years, the company has experienced many memorable moments, some to cherish and others best forgotten. As part of the celebration of Cerillion’s 25th anniversary, seven original team members gathered to reflect on the early days, the challenges faced during periods of growth, and their journey through major events such as the dotcom boom, the global financial crisis, and countless overseas trips.

According to Louis Hall, CEO and founder, the spin-off from Logica was conducted with a great deal of secrecy. Right up until the final moments, there was uncertainty as to whether it would happen. The financial side was not the most critical issue; rather, the differing opinions within Logica about the value of the division created uncertainty. Some saw it as a valuable asset, while others were glad to offload the liabilities. At that stage, the product was not fully developed, and external investment was needed to move forward.

Paul Landowski, Programme Manager, recalls a company weekend in Amsterdam where the team held discussions about the company’s future, including voting on the name and the brand’s shade of blue. While the process appeared democratic, Louis likely already had a plan in mind. The priority seemed to focus on these details rather than how the business would survive beyond the initial months, a reflection of the Silicon Valley mindset of that era.

There was significant scepticism within Logica about whether the spin-off would succeed, with many predicting failure. However, they had crucial support from John Coleman, the head of Logica’s telecoms division, and eventually, Logica’s CEO, Martin Read, approved the move. Even so, the outcome remained uncertain until the last minute. Louis remembers signing the deal and flying to London to collect the certified cheque that would finalise the transaction. The cheque itself held immense value, and there was a palpable fear of losing it.

For many who joined Cerillion at that time, the decision carried significant risk, but youth and a willingness to embrace uncertainty made the leap easier. Landowski reflects on discussions held at a pub beneath Stephenson House about whether to join the new venture or stay with Logica. Ultimately, the desire for variety and a break from the corporate environment led many to take the risk.

Others, like Paul Stanier and Shelley Western, were motivated by the opportunity to do something different. The corporate atmosphere at Logica had grown tiresome for some, and the excitement of building something from the ground up was a strong incentive. The lack of mortgages or major financial commitments also gave them more freedom to take that gamble.

Jon Boothman saw the spin-off as a chance to escape from what he disliked at Logica, while Alan Ward recalls a more relaxed culture emerging in Cerillion’s early days. He remembers an amusing exchange with a colleague who, instead of asking about his role, only inquired about what he could wear. This laid-back approach symbolised a break from the rigidity of corporate life.

For contractors like Marlen Baker, Cerillion represented an enticing opportunity to shift away from the work they had been doing at Logica. For Ward, the decision was influenced by location. He was part of Logica’s transport division in Leatherhead, a place he found uninspiring. Additionally, Logica’s career model required moving into management roles, which was not appealing for those who preferred to remain technically focused.

Hall reflects on this period, noting that while many new companies were being launched and quickly sold for large sums of money, Cerillion’s motivation was not primarily financial. The goal was to create something new and different. Hall admits that, in hindsight, the team’s youthful enthusiasm and inexperience were both strengths and challenges during those early years.

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Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.

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