Tracor was first formed in 1955 as the Associated Consultants and Engineers by four highly creative associates, physicists Jess Stanbrough, Chester McKinney, and Richard Lane and mechanical engineer Frank McBee. The new company’s first contract was an industrial noise abatement project and over the next two years they gained numerous small contracts each helping the company to build a reputation as a reliable and creative enterprise.
In 1957, following discussions between the founding members the company changed its name to Texas Research Associates Inc. While the name change reflected the company’s growing concentration on research and development work in a variety of different sectors, they maintained their focus on acoustical research and sonar technology.
During the late 1950s and early 1960s another company in Austin, Texas was also building a reputation in the defence electronics field. The Textran Corporation’s formation and early development mirrored that of Texas Research Associates; soon both companies met and agreed to merge the two companies, forming Tracor Inc. in 1962. Immediately after the merger the new company embarked on an aggressive strategy of acquisition. In 1964, Tracor made its first stock offering. Throughout the 1970s the company’s growth through acquisition continued without interruption.
In a development that the management of Tracor could not avoid, however, the company was suddenly purchased by Westmark Systems Inc., in 1987. This signalled a period of manufacturing difficulties, cost overruns and financial concerns that threatened Tracor’s profits. By 1990 the situation hadn’t improved and Westmark filed for a reorganisation under Chapter 11 of the US Bankruptcy Code. By December 1991, the reorganisation was complete, Westmark had disappeared and only two companies remained, Tracor and Littlefuse.
In 1993, Tracor made two major acquisitions, GDE Systems Inc., and the Vitro Corporation. After both companies were fully integrated, Tracor’s annual sales had increased by over 28%. By 1995 almost 90% of Tracor’s sales were to various agencies of the United States Government, most notably the Department of Defense and the Armed Services.
In June 1998, The General Electric Company’s North American subsidiary completed the purchase of Tracor, this represented a major expansion of GEC’s defence division, Marconi Electronic Systems.
