Shield AI to acquire radar manufacturer Echodyne for up to $5.3 billion

Shield AI, a developer of autonomous systems and AI-driven defense technology, has announced the full acquisition of Echodyne Corp., a manufacturer of multi-mission 4D MESA radars. The transaction is valued at up to $5.3 billion, with an additional $500 million potentially payable if Echodyne meets specific operational targets.

To finance the deal, Shield AI is raising $2.5 billion. This includes $1 billion from a Series H funding round, which values the company at $28.8 billion, $1 billion in structured equity from funds managed by Blackstone, and $500 million in debt financing organized by JPMorgan Chase Bank.

The acquisition aims to integrate Echodyne’s sensing capabilities with Shield AI’s Hivemind autonomy software and V-Bat unmanned aerial vehicles. Echodyne, which employs approximately 400 people, will continue to sell its radar technology to various counter-drone system manufacturers. The combined entity is expected to have approximately 2,700 employees. The deal is slated to close in early 2027, pending regulatory approval.