Tracor was a major North American defence electronics contractor which was acquired by Marconi Electronic Systems (MES), a subsidiary of GEC plc, in 1998. Following the purchase of MES by British Aerospace in November 1999 to form BAE Systems, Tracor became BAE Systems Integrated Defense Solutions. Following a 2005 reorganisation, the company became BAE Systems Sensor Integration, part of Electronics and Integrated Solutions.

History

Tracor was founded in 1955 as Associated Consultants and Engineers. Early contracts included sales to Union Carbide and the United States Navy. The company's early focus on research and development soon expanded to the manufacture of instruments and components. In 1960 the company was renamed Texas Research Associates and in 1962 merged with Textran Corporation to become Tracor.

In 1981 Tracor created Rokar International in Jerusalem, Israel for the development of advanced electronics for military and commercial applications.

Tracor was acquired by Westmark Systems in 1986. Westmark was soon in financial difficulties partly because the $866 million deal was highly leveraged but also due to a collapse in oil prices. Westmark filed for bankruptcy protection in 1989 and in 1991 Tracor was split from the company.

In 1993 Tracor increased its size dramatically with the acquisition of Vitro Corporation from Penn Central for $94 million. In 1994 Tracor purchased GDE Systems Inc. from the Carlyle Group (GDE was formerly General Dynamics Electronics). In February 1996 Tracor acquired AEL Industries, an electronic warfare systems and components manufacturer which was renamed Tracor Aerospace in March 1997.

Tracor had a 30 year history of support of the Aegis defense system on United States Navy cruisers and destroyers.

Dr. D. Van Holliday was one of Tracor's founding employees

GEC takeover

GEC's North American subsidiary announced its intention to acquire Tracor in April 1998. Following a review by the Committee on Foreign Investment in the United States (CFIUS) (to ensure there were no national security implications) GEC completed the transaction in June 1998. The relatively quick decision, particularly for such an important defense contractor, was due to the relationship which already existed between GEC and the Defense Department. A condition of the purchase was that GEC must appoint a "proxy board". This is a mechanism where the company is run locally by American managers and was employed in this case due to the many sensitive projects which Tracor was involved in.

The acquisition was as a major expansion of GEC's defence division, GEC-Marconi (later Marconi Electronic Systems), however seven months later GEC announced the demerger of Marconi Electronic Systems (including the North American defence businesses) which would then merge with British Aerospace (BAe) to form BAE Systems. This process was completed on November 30 1999. Commentators have described Tracor as the jewel in crown of GEC-Marconi North America.

BAE Systems

In the new company GEC's North American defence businesses were merged with BAe's U.S. interests to form BAE Systems North America. In the years since BAE has pursued growth in America more aggressively than any other area in order to take advantage of the large U.S. procurement and research budgets. Today BAE Systems Inc. (of which Tracor is a large part) is the largest foreign player in the U.S. defence market.

Organisation

• Tracor Information Systems
• Tracor Aerospace
• Tracor Systems Technologies

References

• Handbook of Texas Online "TRACOR," www.tsha.utexas.edu/handbook/online/articles/TT/dnt3.html (accessed February 24, 2006)
• GEC Completes Tracor Acquisition (July 20, 1998). Electronic News