Private company

Election Systems & Software

Voting machine manufacturer in Nebraska, US

Election Systems & Software (ES&S or ESS) is an Omaha, Nebraska-based company that manufactures and sells voting machine equipment and services. The company's offerings include vote tabulators, DRE voting machines, voter registration and election management systems, ballot-marking devices, electronic poll books, ballot on demand printing services, and absentee voting-by-mail services. In 2014, ES&S was the largest manufacturer of voting machines in the United States, claiming customers in 4,500 localities in 42 states and two U.S. territories.2 Wikipedia text CC BY-SA 4.0

Last updated Oct 21, 2026.

Overview

1979Founded1
  • HeadquartersOmaha1
  • Websitewww.essvote.com
  • Legal formlimited liability company1
  • LEI549300QB1QD8I45QK0093
  • StatusActive3
  • LEI statusLapsed (not renewed)3
  • Registered addressC/O National Registered Agents, Inc., 19904 Dover, United States3
  • Registered withDivision of Corporations, Department of State, 22436073

Election Systems & Software (ES&S or ESS) is an Omaha, Nebraska-based company that manufactures and sells voting machine equipment and services. The company's offerings include vote tabulators, DRE voting machines, voter registration and election management systems, ballot-marking devices, electronic poll books, ballot on demand printing services, and absentee voting-by-mail services.2

The story

American Information Systems

In October 1974, Robert J. Urosevich of Klopp Printing Company in Omaha approached Westinghouse Learning Corporation, a subsidiary of Westinghouse Corporation, asking whether the scanners Westinghouse was building for educational tests could be used to scan voting ballots. This led Westinghouse to briefly enter the ballot scanning business, and Urosevich and his brother Tod, a former IBM salesman, formed Data Mark Systems to sell and service Westinghouse voter tabulation equipment. Data Mark and Westinghouse ballot tabulation equipment had limited success through the late 1970s.

As Westinghouse withdrew from the voting business, the Urosevich brothers and several former Westinghouse employees founded a new company in August 1979, American Information Systems (AIS). AIS came out with a line of central-count ballot scanners that entered the marketplace in 1982.

Business Records Corporation

The first precinct-count ballot scanner was the Gyrex MTB-1, which came to market around 1974. The MTB-1 evolved into the MTB-2, and corporate ownership shifted from Gyrex Corporation to Valtec, in 1977, and then to Major Data Concepts, in 1979. Computer Election Systems Incorporated (CESI), the manufacturer of Votomatic punched-card voting equipment, marketed the MTB-2 as the Tally-II scanner in the early 1980s, pairing it with its own Precinct-Ballot-Conut punched-card ballot reader, the PBC.

CESI developed its own family of precinct-count and later central-count scanners, under the Optech brand name. The Optech I precinct-count scanner came to market in 1983, and saw successful use in several states. Cronus Industries, Inc., a Texas-based company, purchased CESI in 1985 and merged it with their ballot printing subsidiary, Business Records Corporation (BRC).

Cronus Industries

Cronus Industries was formed in September 1976. Cronus, named after the Greek god Cronus, was an offshoot of Dallas, Texas-based company Tyler Corporation, which was previously a high tech military contractor known as Saturn Industries. Throughout the 1980s, its subsidiary, Business Records Corporation (BRC), acquired multiple small private companies that focused on providing information for local and county governments in the United States, including land records, election equipment and government software.

In 1983, Cronus began divesting from its agricultural equipment business. In 1984, Cronus acquired a steel-coating plant in Fairfield, Alabama from U.S. Steel. Between 1985 and 1986, Cronus acquired Computer Election Systems (CES) and eight other election equipment companies. After acquiring CES, Cronus chairman and CEO C. A. Rundell, Jr. claimed in 1985 that the company controlled 40% of the election equipment market in the United States, but refused to share a similar answer in 1988.

CES was founded in 1969 by four IBM employees: Robert P. Varni, Joseph H. Chowning, Jack Gerbel, and Ken Hazlett. In 1969, CES was one of five companies licensed by IBM to sell the Votomatic voting machine. The company went public in 1973, and its Votomatic had been integrated into 1,000 jurisdictions across the United States by the mid-1980s. In 1977, CES was purchased by an investment firm owned by Republican Prentis Cobb Hale, who strongly supported Ronald Reagan. According to The Texas Observer, the CES founders tended to lean Republican. According to one of the co-founders, CES faced a significant service decline under Hale’s leadership, starting around the 1980 United States elections.

By 1986, Cronus sold two of its subsidiaries (American Buildings Company and Polymer Metals Inc.), intending to focus on BRC.

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By 1987, three investment firms collectively owned 19% of outstanding stock: First Pacific Advisors, Alex Brown Investment Management Company, and Charter Oak Partners, with the latter owning 10%.

In 1987, Cronus sued Shoup Voting Machine Corporation, accusing the company of copyright infringement over BRC’s DRE voting machines. Shoup in turn accused Cronus of attempting to monopolize the election equipment market in the United States and of enabling electoral fraud.

Also in 1987, Fred Meyer, the former president of Tyler Corporation, had run for mayor of Dallas. Rundell contributed $5,000 to Meyer's campaign. By 1988, Meyer was the chairman of the Republican Party of Texas. Rundell also contributed to right-wing Democrats Lloyd Bentsen and Ray Farabee.

In 1988, Rosewood Financial Inc., an investment vehicle which was owned by Caroline Rose Hunt and created by her estate trust, purchased a 6% stake in Cronus Industries. In the 1980s, Rosewood also had ownership in PVH Corp., First Executive, and IMC Global. According to a spokesman for Rosewood, Hunt did not take an active role in managing the company. Lloyd Donald Brinkman also owned over 5% by 1988.

Also in 1988, P.E. 'Bill' Esping, founder of First Data, became president and CEO of Cronus and BRC, a position he held until his death in 1998. He owned $10 million in company securities in 1988, which was equivalent to 12% ownership.

In 1990, Cronus changed its name to Business Records Corporation Holdings, Inc., and then again in 1992 to Business Records Corporation Holding Company. The company acquired CMSI, a private Oregon-based firm that sold information management services to healthcare organizations and local governments, in 1993. In 1996, the company changed its name again to BRC Holdings, Inc., expanding its focus to healthcare consulting by acquiring The Pace Group. After selling its election business to American Information Systems and Sequoia Pacific Systems in 1997, BRC Holdings Inc. was acquired by Affiliated Computer Services in 1998.

In 1996, the United States Securities and Exchange Commission sent a cease-and-desist letter to an investor, Alexander Sheshunoff, Sr., accusing him of market manipulation by attempting to influence the closing price of BRC between 1990 and 1995. He owned 5.32% of BRC common stock in 1989 and 8.05% of common stock in 1994.

Election Products Inc.

Election Products Inc. was a small Virginia-based election service company. In the early 1990s, the company contracted with ILJ Corporation based in Richmond, Virginia, to develop a DRE voting machine that would be marketed as the Votronic, unrelated to an earlier ballot scanner that was marketed under the same name in 1960. This voting machine had a flat panel liquid crystal display and a touchscreen, and was no larger than a laptop computer at the time. Votronic was first used in the 1996 primary elections; one commentator said the machine resembled a large Magna Doodle.

Automark Technical Systems LLC

In 2003, Eugene Cummings filed a patent for a ballot marking device designed to provide an accessible voting interface for optical-scan voting systems.

Cummings, along with Joseph Vaneck founded Automark Technical Systems LLC to develop and manufacture the machine. Prior to this machine, the Help America Vote Act, passed in 2002, required jurisdictions in the United States that used optical scan systems install at least one DRE voting machine in each polling place.

Mergers and antitrust actions

American Information Systems acquired the Election Services Division of Business Records Corporation and was reincorporated as Election Systems & Software, Inc. in December 1997. At the time, AIS had about 750 customers and BRC had around 1200; customers were typically county election offices. With the merger, ES&S became the largest voting system vendor in the United States. The merger was delayed by the U.S. Department of Justice on antitrust grounds until ES&S agreed to transfer the Optech product line to Sequoia Voting Systems, while retaining the right to sell and service Optech products to its existing customers.

Shortly after the BRC-AIS merger, ES&S acquired the rights to Votronic, which they renamed iVotronic, and made major cosmetic changes to it. In their sales presentations, ES&S emphasized that the iVotronic was essentially the same machine as the Votronic except for features added to bring it into compliance with the Americans with Disabilities Act of 1990.

ES&S was one of the top four providers of voting equipment used in the November 2004 election. The other three were Diebold Election Systems, Sequoia Voting Systems, and Hart InterCivic.

In January 2008, ES&S acquired AutoMARK Technical Systems. Under ES&S's ownership, AutoMARK's use expanded considerably. Eight years after its acquisition by ES&S, in the 2016 elections, it was used statewide in ten states, and widely used in 19 additional states.

In September 2009, ES&S acquired Premier Election Solutions, formerly known as Diebold Election Systems. Following the acquisition, the Department of Justice and 14 individual states launched investigations into the transaction on antitrust grounds.

In March 2010, the Department of Justice filed a civil antitrust lawsuit against ES&S, seeking it to divest voting equipment systems assets it purchased in September 2009 from Premier Election Solutions in order to restore sufficient competition. The company later sold the assets to Dominion Voting Systems.

Recent history (1998-present)

ES&S had revenue of over $80 million in 1998, but declined to report revenue in 2014. Aldo Tesi was CEO from 2000-2015.

Texas Instruments supplies one of the chips used by ES&S. One of the company's "programmable logic devices" is from a United States-based firm with a factory in China.

Among other organizations, John Gottschalk was on the board for ES&S, the McCarthy Group, and the Kiewit Institute. Gottschalk recruited Chuck Hagel to join AIS in 1992.

For the 2000 United States elections, chairman Bill Welsh stated that, as preparation for any issues, ES&S had four business planes, two turboprops, and over 1,000 temporary workers (including some from Offut Air Force Base) on standby. By 2001, ES&S had installed equipment internationally, including Venezuela, Guam, the Republic of Palau, Canada, and the Autonomous Region in Muslim Mindanao.

As of October 2019, ES&S controls about 50% of the election system market of the United States; makes most of its money from long-term maintenance contracts; has filed lawsuits when it fails to win contracts or has them taken away; hired former election officials as lobbyists; donated to political campaigns and lobbied politicians; and threatened lawsuits against voting rights activists and security researchers. Between 2013 and 2020, ES&S has donated at least $30,000 to the Republican State Leadership Committee.

Ownership and management

As of June 2019, ES&S was wholly owned by Government Systems, Software & Services, Inc. McCarthy Group held a controlling ownership. Those with over 5% share investments in the company, as of June 2019, included Tom Burt and Tom O'Brien. Those with over 5% ownership stakes in McCarthy Group were Nancy McCarthy and Kenneth Stinson, both passive investors.

As of 2020, Burt is president and chief executive officer of ES&S.

ES&S was founded by Republicans was financed by the families of Howard Ahmanson Jr. and Nelson Bunker Hunt, is owned by a private equity firm, McCarthy Group, and its investors are not fully known as of December 2019. Chuck Hagel was chairman of a predecessor company to ES&S, and the treasurer for Hagel's campaign during the 1996 United States Senate election in Nebraska, Michael McCarthy, was the founder of McCarthy Group. According to Bev Harris' book on black box voting, ES&S is tied to Kiewit Corporation, which as of 2004 was involved in a number of bid rigging scandals; advocated for privatization of highways in the United States; owned CalEnergy, and was heavily involved in telecommunications via its ties to Level 3 Communications and installations of fiber-optic cables underneath highways and video surveillance cameras on roads. The Omaha World-Herald newspaper owned a stake in ES&S between 1986 and 2011. The Peter Kiewit Foundation in turn owned the Omaha World-Herald as of 2004.

McCarthy Group

As of 2025, ES&S is owned by M-One Capital, formerly known as McCarthy Group, which partnered with the founders of ES&S in 1987. McCarthy Group is an investment fund based in Omaha, Nebraska and founded in 1986 by Michael McCarthy and Richard Jarvis. The Nation described McCarthy Group as being "identified with Republican causes." As of the late 2000s, McCarthy Group has managed between approximately $500 million and $1 billion in assets. McCarthy Capital, a private equity firm, has been described as "the operating arm of McCarthy Group". McCarthy Capital has been involved in construction, agriculture, real estate development, and property management. As of 2022, McCarthy Capital and its affiliates have managed over $10 billion in assets.

According to Bev Harris, in 1987, William and Robert Ahmanson sold their shares in AIS to the Omaha World-Herald and McCarthy Group, with each company gaining 45% and 35% ownership, respectively. The Omaha World-Herald also owned the McCarthy Group as of 2004.

In 2004, the Omaha World-Herald Company owned about half of ES&S, while McCarthy Group owned about one fourth.

Michael McCarthy appointed Chuck Hagel as president of McCarthy Group in the 1990s. Hagel had reported to the United States Senate that his investments in McCarthy Group were valued between $1 million and $5 million. According to Bev Harris, Michael McCarthy had confirmed this investment as well as Hagel's investment in AIS Investors Inc., a group representing ES&S investors, in a 2003 interview. As of 2004, per the Center for Responsive Politics, the CEO of McCarthy Group, Michael McCarthy, had donated $28,750 to Republican politicians and candidates and $0 to Democratic politicians and candidates. Between 1999 and 2004, employees and executives donated $74,245 to Republicans and $13,300 to Democrats.

Michael McCarthy has also been on the board of directors for Union Pacific, Creighton University, Heritage Services, Joslyn Art Museum, Omaha Community Foundation, United Way of the Midlands, Omaha's Henry Doorly Zoo and Aquarium, Lasting Hope Recovery Center, Peter Kiewit Sons', Inc. and Cabela's.

Other board members as of the late 2000s included Bob Bates, Margie Doyle, John Gottschalk, Howard Hawks, Rich Jarvis, Gerald Timmerman, Norm Waitt, Dana Bradford, and Kenneth E. Stinson.

From Wikipedia’s article on Election Systems & Software, shared under CC BY-SA 4.0.4

Products and brands

  • software
  • voting machine

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Timeline

  1. 1979Founded Founded1