Westmark Systems Agrees to Acquire Tracor for $694 Million
Privately held Westmark Systems said Friday it will acquire defense contractor Tracor Inc. for $694 million, or $32 a share.
The news sent the stock of Austin-based Tracor soaring $9 to close at $32.125, the biggest percentage gainer Friday on the New York Stock Exchange.
Bobby R. Inman is chairman and chief executive of Westmark, which is owned by privately held Mason Best Co. Westmark is a defense electronics holding company formed in 1986. After the merger, the company will be privately held and known as Tracor Inc., a Westmark Co.
Under the agreement, Westmark will make a tender offer for Tracor shares between Sept. 14 and Oct. 9. Financing for the transaction is fully committed, Westmark said.
Separately, Tracor said it will spin off 85% of its wholly owned subsidiary, to shareholders. The spinoff will not be included in the merger with Westmark.
Established in June, 1987, Electrosource has the exclusive license on a patented process used to make electrodes for lead-acid batteries. The technology has the potential to reduce the costs and weight of lead-acid batteries for cars, golf carts and industrial equipment.
Shareholders of Tracor will receive one share of Electrosource for every five shares of Tracor common stock owned as of Sept 21, 1987.
More than 70% of Tracor’s 1986 sales of $632 million comes from the defense electronics area.
Among its major items are the ECM, or electronic countermeasure devices, used to ward off attack on naval vessels by confusing heat seeking missiles and radar guided missiles.