Tracor Company Overview and Expansion

Tracor was a leading American aerospace and defense company that played a significant role in the development of various military and space-related technologies.

The company was founded in 1956 by a group of entrepreneurs in Austin, Texas.

Tracor's early focus was on providing technical services and products to the U.S. military, which helped establish the company as a trusted partner in the defense industry.

One of Tracor's notable contributions was its work on the development of the Sidewinder missile system.

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Tracor was founded in 1954 as Associated Consultants and Engineers by physicist Richard N. Lane, its first president. He recruited Frank W. McBee, Chester McKinney, and Jess Stanbrough as its founders.

The company's early focus was on research and development, which 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.

D. Van Holliday was one of Tracor's founding employees. Tracor became the first Austin, Texas, based company on the New York Stock Exchange in 1976.

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In 1981, Tracor created Rokar International in Jerusalem, Israel for the development of advanced electronics. Tracor was acquired by Westmark Systems in 1986 for $866 million.

After Westmark filed for bankruptcy protection in 1989, Tracor was split from the company in 1991. Tracor increased its size dramatically with the acquisition of Vitro Corporation from Penn Central Transportation Company for $94 million in 1993.

In 1994, Tracor purchased GDE Systems Inc. from the Carlyle Group. Tracor had a 30-year history of support of the Aegis defense system on United States Navy cruisers and destroyers.

Tracor acquired AEL Industries, an electronic warfare systems and components manufacturer, in February 1996. The company acquired Cordant Inc., a privately held provider of computer services to the government, in September 1996.

In 1998, General Electric Company plc acquired Tracor, a major expansion of GEC's defence division, GEC-Marconi. This takeover was completed in June 1998 after a review by the Committee on Foreign Investment in the United States.

Tracor's growth through acquisition was a key factor in its success. The company made its first public stock offering in 1964, which was an enormous success, with approximately 110,000 shares sold at an opening price of $19.50.

The acquisition of Tracor was a significant one for GEC, with commentators describing Tracor as the jewel in the crown of GEC-Marconi North America.

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In April 1998, General Electric Company plc announced its intention to acquire Tracor.

The acquisition was a major expansion of GEC's defence division, GEC-Marconi (later Marconi Electronic Systems).

GEC completed the transaction in June 1998 after a review by the Committee on Foreign Investment in the United States (CFIUS).

A condition of the purchase was that GEC must appoint a "proxy board" to run the company locally with American managers.

This was due to the many sensitive projects which Tracor was involved in.

The General Electric Company plc was a British company, not affiliated with the similarly named company which is based in the United States.

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It has since been renamed to Marconi plc.

The acquisition was described as a major expansion of GEC's defence division, and Tracor was referred to as the "jewel in the crown" of GEC-Marconi North America.

Seven months after the acquisition, GEC announced the demerger of Marconi Electronic Systems, which included the North American defence businesses.

This demerger would eventually merge with British Aerospace (BAe) to form BAE Systems, a process completed on November 30, 1999.

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In the 1960s, Tracor's growth through acquisition strategy was in full swing, with the company making its first public stock offering in 1964 to fund the purchase of Sulzer Laboratories for $19.50 per share.

Tracor's public offering was an enormous success, with approximately 110,000 shares being sold on its first day of trading.

By the end of the decade, Tracor had purchased companies across the United States to build a broader and firmer manufacturing base within the defense electronics industry.

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Tracor's acquisition strategy focused on firms specializing in the design and manufacture of analytical instruments and electronic components, many of which were leading manufacturers in electronic components for the automobile, electronics, and home appliances markets.

In the 1970s, Tracor continued to grow through acquisition, introducing innovative products to the defense electronics industry, including graphic display software for electronic defense systems and a noise monitoring system for the U.S. Navy.

By the mid-1970s, Tracor had increased its market share in numerous domestic markets and began a strategic plan to enter foreign markets and cultivate overseas customers.

By the end of fiscal 1975, Tracor had reported sales of over $100 million, a milestone that marked the company's growing success.

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Tracor was a multifaceted company with several distinct divisions.

The company's organization was divided into several key areas, including Tracor Information Systems, Tracor Aerospace, Tracor Systems Technologies, Tracor Instruments, Tracor Applied Sciences, and Tracor Aviation.

Each of these divisions played a crucial role in the company's overall operations.

Here are some of the key divisions that made up the Tracor organization:

Tracor's growth through acquisition strategy was a key factor in its expansion during the 1960s and 1970s. The company made its first public stock offering in 1964, which was an enormous success, and used the funds to purchase Sulzer Laboratories, a defense industry contractor.

Tracor continued to pursue companies across the United States to build a broader and firmer manufacturing base in the defense electronics industry. Many of the companies purchased during this time were leading manufacturers in electronic components for various markets.

By the mid-1970s, Tracor had increased its market share in numerous domestic markets and began a strategic plan to enter foreign markets and cultivate overseas customers. The company reported that it had surpassed the $100 million milestone in sales for fiscal 1975.

Tracor's growth continued in the 1990s with two major acquisitions in 1993: GDE Systems, Inc., and Vitro Corporation. The company's annual sales increased by 28 percent from 1994 to 1995, from $694 million to $886.9 million.

In 1995, almost 90 percent of Tracor's sales were to various agencies of the U.S. government, including the Department of Defense and the Armed Services. The company played a key role in developing defense systems for the U.S. Navy.

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Tracor had several key subsidiaries, including Tracor Aerospace, Inc. and Tracor Applied Sciences, Inc.

These subsidiaries were instrumental in driving the company's growth and expansion into new markets.

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Tracor Aerospace, Inc. is one of the principal subsidiaries of the company, along with Tracor Applied Sciences, Inc. and Tracor Flight Systems, Inc.

These subsidiaries are key players in the company's operations, working together to drive innovation and growth.

Tracor Applied Sciences, Inc. focuses on developing advanced technologies, while Tracor Flight Systems, Inc. specializes in flight systems and aerospace engineering.

Vitro Corporation is another significant subsidiary, contributing to the company's product offerings and market presence.

GDE Systems, Inc. rounds out the list of principal subsidiaries, bringing its expertise in various fields to the table.

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