Shield AI has agreed to acquire Echodyne, a maker of radar used against drones, in a transaction valued at up to $5.3 billion, announced on 5 November. Both companies expect it to close in early 2027.
“Shield shares our view that autonomous systems can only act on what they sense, and superior sensors lead to superior systems and outcomes”
Eben Frankenberg, CEO of Echodyne, in a statement · defensenews.com ↗
Of the price, $4.8 billion is paid and issued at closing, and up to $500 million more depends on Echodyne meeting agreed financial targets. Shield AI is raising $2.5 billion to fund its side: a $1 billion Series H at a $28.8 billion post-money valuation, $1 billion of structured equity from funds managed by Blackstone, and $500 million of debt led by JPMorgan Chase Bank. Both firms expect triple-digit revenue growth this fiscal year. J.P. Morgan Securities advised Shield AI and Morgan Stanley advised Echodyne.
Shield AI's X-BAT, the AI-piloted vertical takeoff fighter jet the company unveiled in 2025
Shield AI · Image: Defense News
Echodyne, based in Kirkland, Washington, builds solid-state radars sold in more than 40 countries. They can track over 1,000 objects at once and feed weapon stations, high-energy lasers and microwave weapons. In September it won a contract with a $250 million ceiling over 36 months from the Army's JIATF-401, and it recently opened an 86,350 square foot plant meant to turn out about 30,000 radars a year.
About Shield AI
Shield AI is a defense technology company best known for the V-BAT vertical takeoff drone, the X-BAT AI-piloted jet and Hivemind autonomy software, which lets uncrewed aircraft, boats and spacecraft fly and team with AI pilots.
The V-BAT became known for helping the US Coast Guard watch for drug trafficking at sea, which led to large maritime drug busts. In April 2025 Shield AI bought an autonomy software business from Crowdbotics, the first of three acquisitions since then, and in March 2026 it acquired Aechelon Technology, which works on simulation and synthetic reality. It unveiled the X-BAT, a vertical takeoff and landing fighter jet, in 2025, and in September 2026 named Washington state as its production home.
Shield AI, which makes the V-BAT and X-BAT drones and Hivemind pilot software, says the purchase widens its offering and takes it into counter-drone work. It describes a company of three units: autonomy software, autonomous systems and mission systems. Echodyne's CEO has said demand for counter-drone radar could grow tenfold by 2030.
Sources · 2