Shield AI to acquire radar maker Echodyne in $5.3 billion deal

Shield AI plans to acquire a radar company as it continues to expand its defense technology capabilities.

Shield AI is buying Echodyne Corp. in a transaction valued at up to $5.3 billion. Echodyne builds radars for counter-drone and security systems used by defense, government and commercial customers in more than 40 countries.

Both companies expect triple-digit revenue growth this fiscal year, according to Shield AI’s announcement Thursday.

“We are building a new-generation defense technology company consisting of three fast-growing, high-margin, mutually supporting business units: autonomy software, autonomous systems, and mission systems,” said Gary Steele, CEO of Shield AI.

Shield AI is looking to accelerate its ability to meet customer demand for multi-mission capabilities and increases its access to the counter-drone industry. The acquisition also aims to diversify revenue streams beyond just autonomy software.

Shield AI is raising $2.5 billion to support the transaction, including $1 billion in Series H capital at a touted post-money valuation of $28.8 billion post-money valuation.

Another $1 billion is in a structured equity investment from funds managed by Blackstone, while $500 million in debt financing is being led by JPMorgan Chase Bank.

Of the $5.3 billion transaction value, $4.8 billion will be paid and issued at closing and up to an additional $500 million is contingent on Echodyne meeting agreed financial performance targets.

Both companies expect the transaction to close in early 2027.

Echodyne designs and manufactures compact, solid-state radars by using its patented Metamaterials Electronically Scanned Array (MESA) technology. In September, Echodyne received a contract with a $250 million ceiling from the Armys Joint Interagency Task Force 401 to supply counter-drone radars to U.S. and allied forces.

Echodyne’s radars are integrated into remote weapon stations, high-energy lasers, and high-power microwave systems, and they cue interceptors toward incoming drones.

“Hundreds of customers rely on our radars to detect and track drones, protect people and infrastructure, secure borders, and ensure safe airspace operations,” said Eben Frankenberg, CEO of Echodyne.

Shield is also using the acquisition to extend its presence in Washington state, where Echodyne is headquartered in the town of Kirkland.

Echodyne recently opened an 86,350-square-foot manufacturing facility to produce about 30,000 radars per year. In September, Shield AI named Washington as the production home for the autonomous jet powered X-BAT drone.

J.P. Morgan Securities was the financial adviser to Shield AI. Wachtell, Lipton, Rosen & Katz acted as legal adviser to Shield. Covington & Burling LLP advised Shield on regulatory and business diligence matters. On the financing, Sullivan & Cromwell LLP served as legal advisor to Shield AI.

Morgan Stanley & Co. LLC and Robert W. Baird & Co. were the financial advisers to Echodyne, whose legal adviser was Fenwick & West LLP.

This is Shield AI’s third acquisition since April 2025, when it acquired an autonomy software business from Crowdbotics. In March 2026, Shield AI acquired Aechelon Technology to add simulation and synthetic reality technologies.