GEC buys US defence firm for $1.3bn

GEC buys US defence firm for $1.3bn
Richard Wilson
GEC has acquired US defence electronics and information technology company Tracor for $1.3bn (?800m).
Tracor, which will become part of GEC-Marconi’s North American group, is based in Austin, Texas and is the 15th largest defence firm in the US. 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” segment of the market.
“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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