Shield AI agreed to acquire radar maker Echodyne in a transaction valued at $5.3 billion and is raising $2.5 billion to help fund it, the companies announced Thursday. The deal would bring a supplier to other counter-drone system builders into Shield’s business alongside its autonomous aircraft and flight software.
The package includes a $1 billion Series H at a $28.8 billion post-money valuation, $1 billion in structured equity from Blackstone-managed funds and $500 million of debt arranged by JPMorgan Chase. Shield confirmed in a June 22 announcement that an earlier financing had closed at a $12.7 billion post-money valuation.
Echodyne’s compact radars track incoming drones and feed targeting data to weapons such as lasers and interceptors. The companies said Echodyne will retain its team and continue selling radars as standalone products after closing. CEO Eben Frankenberg said in an interview published by Defense News in July that Echodyne became profitable in 2025.
Of the stated deal value, $4.8 billion is due at closing and up to $500 million depends on Echodyne meeting performance targets. Closing is expected in early 2027, subject to regulatory approvals and other customary conditions.