British General Electric to Acquire Tracor

Britain’s General Electric Co. agreed to buy Tracor Inc. for $1.4 billion in cash and assumed debt, which would make the company the sixth-largest U.S. defense electronics maker. London-based GEC, which is unrelated to the U.S. company with the same name, offered $40 a share for Austin, Texas-based Tracor. GEC would also assume $257.8 million in Tracor debt. The offer has the support of Tracor’s board. GEC said it would merge Tracor, which makes drone aircraft and electronic warfare simulators, into the U.S. operations of its defense unit, GEC-Marconi, giving it sales of $2.3 billion. Tracor had sales of $1.27 billion last year. GEC said Tracor’s chief executive, James. B. Skaggs, and finance director, Robert K. Floyd, will leave the company. The takeover would enhance earnings immediately, GEC said. Tracor’s shares rose $2.96 to close at $29.31 on Nasdaq.