City gives thumbs up to GEC's Tracor deal

City gives thumbs up to GEC’s Tracor deal
Richard Wilson GEC’s ?800m US defence acquisition has been welcomed by City investors. On the day following last week’s purchase of Tracor, GEC’s share price jumped by four per cent as 4.5 million shares changed hands. The US defence electronics and information technology company Tracor, which employs 1,700 staff in the US, will become part of GEC-Marconi’s North American group. Based in Austin, Texas it is the 15th largest defence firm in the US and its 1997 sales were over $1.2bn and operating profit was $102m. GEC said that the US firm will reinforce GEC-Marconi’s position as a major international defence electronics business, and establish its as a leading supplier in the rapidly growing “integrated digital battlefield” market segment. “The acquisition of Tracor will bring GEC into rapidly growing defence-related information technology markets and is in line with GEC’s strategy of building a substantial business in the US,” said GEC managing director George Simpson. Simpson added that the acquisition marked the beginning of its strategy to build up its presence in the US defence market.

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