Shield AI to Acquire Echodyne for $5.3 Billion

Shield AI will acquire Echodyne in a transaction valued at $5.3 billion, the company said in a press release. The acquisition will add Echodyne's radar technology to Shield AI's mission systems business, including sensors used to detect and track drones.

Shield AI is raising $2.5 billion to support the transaction. The financing includes a $1 billion Series H round at a $28.8 billion post-money valuation, a $1 billion structured equity investment from funds managed by Blackstone, and $500 million in debt financing led by JPMorgan Chase.

Of the transaction value, $4.8 billion will be paid and issued at closing, while another $500 million depends on Echodyne meeting agreed performance targets. The deal is expected to close in early 2027, subject to regulatory approvals and other customary conditions.

Echodyne makes compact radars used in counter drone and security systems across more than 40 countries. Its team will remain in place, and its radars will continue to be sold as standalone products.