Tracor
| Company type | Public (formerly) |
|---|---|
| Industry | Defense electronics |
| Founded | 1954 |
| Founder | Richard N. Lane, Frank W. McBee, Chester McKinney, Jess Stanbrough, Harry Pollard, Byron Grisham, Jr. |
| Defunct | 1998 (acquired) |
| Fate | Acquired by Marconi Electronic Systems (MES), later integrated into BAE Systems |
| Headquarters | Austin , United States |
| Products | Defense electronics, flare and chaff cartridges and dispenser systems |
Tracor, Inc. was a prominent defense electronics firm in North America that was acquired in 1998 by Marconi Electronic Systems (MES), a division of General Electric Company plc. Following MES's acquisition by British Aerospace in 1999, which resulted in the creation of BAE Systems, Tracor was integrated as BAE Systems Integrated Defense Solutions. In 2005, it underwent reorganization and became known as BAE Systems Sensor Integration, operating under the umbrella of Electronics and Integrated Solutions.
History
Established in 1954 under the name Associated Consultants and Engineers by physicist Richard N. Lane, Tracor's founding team also included Frank W. McBee, Chester McKinney, Jess Stanbrough, lawyer Harry Pollard, and machinist Byron Grisham, Jr. The company initially secured contracts with Union Carbide and the United States Navy, concentrating on research and development before broadening its scope to manufacture instruments and components. It adopted the name Texas Research Associates in 1960 and, two years later, merged with Textran Corporation to form Tracor.
In 1976, Tracor achieved the distinction of becoming the first company from Austin, Texas listed on the New York Stock Exchange. By 1981, it had launched Rokar International in Jerusalem to focus on the development of sophisticated military and commercial electronics.
Tracor was purchased by Westmark Systems in 1986 for $866 million; however, the company struggled financially due to excessive debt levels combined with declining oil prices. Westmark filed for bankruptcy protection in 1989, leading to Tracor’s separation from Westmark in 1991.
The company grew substantially through several acquisitions: it bought Vitro Corporation from Penn Central Transportation Company for $94 million in 1993; acquired GDE Systems Inc., formerly the electronics division of General Dynamics, from the Carlyle Group in 1994; purchased AEL Industries, a producer of electronic warfare systems, in 1996; and later that year added Cordant Inc., a provider of government IT services.
With a three-decade-long role supporting the Aegis system deployed on U.S. Navy ships, Tracor specialized in designing and manufacturing flare and chaff cartridges along with their associated dispenser systems, essential for countermeasures against infrared- and radar-seeking missiles.
GEC takeover
In April 1998, General Electric Company plc announced plans to acquire Tracor and integrate it with one of its North American subsidiaries. The acquisition underwent scrutiny by the Committee on Foreign Investment in the United States (CFIUS) due to national security implications but was finalized by June 1998. The rapid approval was attributed to GEC’s established ties with the U.S. Department of Defense. A critical stipulation involved establishing a "proxy board" composed of American executives to manage operations because of Tracor’s involvement in sensitive defense contracts. It is important to note that this British firm—later renamed Marconi plc—is separate from the American General Electric Company.
This transaction considerably bolstered GEC’s defense arm, GEC-Marconi (which was subsequently rebranded as Marconi Electronic Systems). Nonetheless, just seven months afterward, GEC announced plans to spin off Marconi Electronic Systems—including its North American defense operations—to merge with British Aerospace (BAe), thereby creating BAE Systems. This merger was completed on November 30, 1999. Industry experts recognized Tracor as a vital component within GEC-Marconi’s North American portfolio.
BAE Systems
Following the merger, GEC's defense operations in North America merged with BAe's U.S. assets, resulting in the formation of BAE Systems North America. Since that time, BAE Systems has strategically grown its presence within the United States to leverage significant defense procurement and research funding available domestically. Currently, BAE Systems Inc., which includes Tracor, holds the position as the foremost foreign entity operating in the U.S. defense sector.
Organization
- Tracor Information Systems
- Tracor Aerospace
- Tracor Systems Technologies
- Tracor Instruments
- Tracor Applied Sciences
- Tracor Aviation