Shield AI agrees to buy radar maker Echodyne for US$5.3 billion
The defense technology startup is raising US$2.5 billion to help finance the acquisition, which it expects to complete in early 2027.
Shield AI has agreed to acquire Echodyne in a deal worth up to US$5.3 billion, the defense technology startup said. The radar maker would give Shield hardware to sell into civilian markets, including public safety, alongside its military business.
The purchase terms call for US$4.8 billion at closing and a further payment of up to US$500 million tied to Echodyne’s performance. Shield expects completion in early 2027. Its planned US$2.5 billion financing is conditional on the acquisition closing.
That financing comprises a US$1 billion Series H round jointly led by Disruptive and Innovation X Capital, US$1 billion in structured equity from Blackstone funds, and US$500 million in JPMorgan debt. Bloomberg reported that the deal puts Shield’s valuation at US$28.8 billion, more than twice its March valuation.
Echodyne operates from Kirkland, Washington, and produces compact radar equipment for security and counter-drone applications. Its systems are used across more than 40 countries, and the US military is among its customers.
Shield chief executive Gary Steele told Bloomberg the acquisition marks its entry into hardware with both military and civilian uses. All of Shield’s end users so far have been governments. Its existing products include the V-BAT surveillance drone and Hivemind software for autonomous military flight.
