Tracor
Encyclopedia
Tracor was a major North American
defense electronics contractor
which was acquired by Marconi Electronic Systems
(MES), a subsidiary of General Electric Company 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
.
added an attorney friend, Harry Pollard. 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.
Dr. D. Van Holliday
was one of Tracor's founding employees
In 1976, Tracor became the first Austin, Texas, based company on the New York Stock Exchange.
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 Transportation Company 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 became part of the Tracor Aerospace division in March 1997.
Tracor had a 30 year history of support of the Aegis defense system on United States Navy cruisers and destroyers. Tracor had great success in its later years designing and producing flare and chaff cartridges and their dispenser systems
for military aircraft in defense against infrared- and radar-targeting missiles.
) (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.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
defense electronics contractor
Defense contractor
A defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...
which was acquired by Marconi Electronic Systems
Marconi Electronic Systems
Marconi Electronic Systems , or GEC-Marconi as it was until 1998, was the defence arm of The General Electric Company . It was demerged from GEC and acquired by British Aerospace on November 30, 1999 to form BAE Systems...
(MES), a subsidiary of General Electric Company plc, in 1998. Following the purchase of MES by British Aerospace in November 1999 to form BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
, Tracor became BAE Systems Integrated Defense Solutions. Following a 2005 reorganisation, the company became BAE Systems Sensor Integration, part of Electronics and Integrated Solutions
BAE Systems Electronics, Intelligence & Support
BAE Systems Electronics, Intelligence & Support is one of two operating groups of BAE Systems Inc., the North American subsidiary of UK-based BAE Systems.-History:...
.
History
Tracor was founded in 1955 as Associated Consultants and Engineers. Tracor was the brainchild of physicist Richard N. Lane, its first president. He recruited Frank W. McBee, Dr. Chester McKinney, and Jess Stanbrough as its founders, and these fouradded an attorney friend, Harry Pollard. Early contracts included sales to Union Carbide
Union Carbide
Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company. It currently employs more than 2,400 people. Union Carbide primarily produces chemicals and polymers that undergo one or more further conversions by customers before reaching consumers. Some are high-volume...
and the United States Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...
. 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.
Dr. D. Van Holliday
D. Van Holliday
Dr. Dale Vance Holliday was born in Ennis, Texas and attended the University of Texas at Austin. He graduated with a B.S. and M.A. in Physics and did extensive theoretical and experimental research on the Mössbauer effect...
was one of Tracor's founding employees
In 1976, Tracor became the first Austin, Texas, based company on the New York Stock Exchange.
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
Vitro Corporation
Vitro Corporation was a major United States defense contractor which became part of BAE Systems in 1999.-History:Vitro was incorporated in 1950 as the Vitro Manufacturing Company. Its main product was slide transparencies for overhead projectors...
from Penn Central Transportation Company for $94 million. In 1994, Tracor purchased GDE Systems Inc. from the Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
(GDE was formerly General Dynamics Electronics). In February 1996, Tracor acquired AEL Industries, an electronic warfare systems and components manufacturer which became part of the Tracor Aerospace division in March 1997.
Tracor had a 30 year history of support of the Aegis defense system on United States Navy cruisers and destroyers. Tracor had great success in its later years designing and producing flare and chaff cartridges and their dispenser systems
AN/ALE-47
The AN/ALE-47 Airborne Countermeasures Dispenser System is used to protect military aircraft from incoming radar and infrared homing missiles. It works by dispensing flares or chaff. It is used on a variety of U.S. Air Force, Navy, and Army aircraft, as well as in other militaries...
for military aircraft in defense against infrared- and radar-targeting missiles.
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 (CFIUSCommittee on Foreign Investment in the United States
The Committee on Foreign Investment in the United States is an inter-agency committee of the United States Government that reviews the national security implications of foreign investments in U.S. companies or operations. Chaired by the Secretary of the Treasury, CFIUS includes representatives...
) (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
Proxy board
A proxy board is a requirement imposed by the U.S. Department of Defense's Defense Security Service on foreign investors seeking to acquire certain American companies...
". 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.