Founded by Charles J. Kennedy (1920–1996) and based in the Greater Los Angeles area, the company was one of the largest independent manufacturers of magnetic-tape data drives for mainframe and minicomputer users.

Before founding his company, Kennedy served as a major in the U.S. Air Force in World War II, setting up a VHF radio transmitter at the Burma Road that helped the Allies supply materiel to China in their efforts against Imperial Japan.

[12] By 1977, Kennedy generated $16 million in revenue and had a market presence in Europe, Australia, Canada, India, Israel, Japan, and South Africa.

[13] In December 1977, Kennedy moved its sheet metal fabrication and circuit board manufacturing operations from Glendale to a 35,000-square-foot building in Altadena, nearby their main headquarters.

[17] As a result of the acquisition, Kennedy consolidated their five California locations to their Monrovia facility, the company having expanded their lease there to 242,800 square feet.

[14]: 16 [3] In 1982, Kennedy acquired the hard drive manufacturing lines, designs, and patents from BASF's American branch in Bedford, Massachusetts.

As part of the same transaction, Kennedy acquired the license to manufacture BASF's 5.25-inch floppy disk drive designs in the United States.

[22] The company's workforce eventually dwindled to 650 by 1987,[22] and in September 1987, amid financial turmoil at Allegheny Ludlum, the latter sold Kennedy to Shugart Corporation for an undisclosed sum.

[23] While Shugart kept Kennedy around as a subsidiary for another year, they eventually dissolved the company and sold its assets to Irwin Magnetic Systems in 1988.