The problem of estimating and tracking the motion of a moving target by a team of mobile robots is studied in this paper. Each robot is assumed to have a directional sensor with limited range, thus more than one robot (sensor) is needed for solving the problem. A sensor fusion scheme based on inter-robot communication is proposed in order to obtain accurate real-time information of the target's position and motion. Accordingly a hierarchical control scheme is applied, in which a consecutive set of desired formations is planned through a discrete model and low-level continuous-time controls are executed to track the resulting references. The algorithm is illustrated through simulations and on an experimental platform.