Shield AI agrees to buy Echodyne in deal valued at up to $5.3 billion

Shield AI agreed Thursday to acquire Echodyne in a transaction valued at up to $5.3 billion, bringing a radar maker into the defense technology company’s business in autonomy software and uncrewed aircraft. The agreement adds sensing hardware used to detect and track drones to Shield AI’s portfolio. [1][2][1][2]

The price includes $4.8 billion to be paid or issued at closing and as much as $500 million more if Echodyne meets performance targets, Shield AI said. To support the transaction, the company is raising $2.5 billion: $1 billion in Series H equity at a $28.8 billion post-money valuation, $1 billion in structured equity from funds managed by Blackstone, and $500 million in debt arranged by JPMorgan Chase. Shield AI said the Series H proceeds will be used principally for the acquisition. [1][1]

Echodyne makes compact, solid-state radars based on its Metamaterials Electronically Scanned Array technology. Military Times described the radar as counter-drone equipment designed to detect and track small aircraft, while the company says its systems also feed data to weapons and security platforms. [1][3][1][4]

Shield says Echodyne sensors are integrated into hundreds of counter-drone and security systems in more than 40 countries. Shield said the purchase will expand its Mission Systems business alongside its Hivemind autonomy software, V-BAT and X-BAT aircraft, and Aechelon simulation products. [1][1]

The deal gives Shield AI hardware used in military and civilian settings. Echodyne says its radars are used in remote weapon stations, high-energy lasers and microwave systems, while its release also describes use at airports and stadiums. GeekWire reported that Shield AI chief executive Gary Steele called the acquisition the company’s first step into hardware with civilian as well as military applications. [1][2][1][2]

Echodyne announced in September that it had secured an indefinite-delivery, indefinite-quantity contract from Joint Interagency Task Force 401. The procurement vehicle makes its radars available through the task force’s C-UAS Marketplace for an ordering period of up to 36 months, with a $250 million ceiling. The ceiling sets a maximum value for orders; it does not represent a committed purchase or guaranteed revenue. The task force said the agreement supports domestic and overseas counter-drone operations. [3][4][4][3]

The transaction also expands Shield AI’s manufacturing footprint in Washington state, where Echodyne is based. The company recently opened an 86,350-square-foot plant that it says can produce about 30,000 radars annually. GeekWire reported that Echodyne had about 400 employees and that Shield AI told the outlet it did not plan layoffs or require employees to relocate. [1][2][1][2]

Shield AI said Echodyne chief executive Eben Frankenberg will remain in that role and oversee the company’s products, manufacturing, and customer and partner relationships. Its MESA radars will continue to be offered as standalone products after the deal closes, the company said. [1][1]

The companies expect the acquisition to close in early 2027, subject to regulatory approvals and other customary conditions. GeekWire described it as Shield AI’s largest acquisition; the company previously bought Heron Systems and Martin UAV in 2021, Sentient Vision Systems in 2024 and Aechelon Technology in June. [1][2][1][2]