Shield says $4.8 billion will be paid and issued at closing, with up to $500 million more tied to performance targets. The deal would add radar to its mission systems business.
Defense technology company Shield AI announced on 5 November 2026, that it had signed an agreement to acquire radar maker Echodyne. The transaction is valued at $5.3 billion. Shield says $4.8 billion will be paid and issued at closing, with up to an additional $500 million contingent on Echodyne meeting agreed performance targets. The deal would add radar technology, engineers and manufacturing capacity to Shield’s mission systems business.
The additional payment depends on agreed performance targets that have not been disclosed, SiliconANGLE said. The acquisition follows Shield’s 2021 purchase of Martin UAV, which brought it the V-BAT drone, and its June purchase of simulation software company Aechelon Technologies.
Echodyne makes compact, solid-state radars using its Metamaterials Electronically Scanned Array, or MESA, technology. CEO and co-founder Eben Frankenberg says customers use the radars to detect and track drones. In September, Echodyne received a contract with a $250 million ceiling from Joint Interagency Task Force 401 to supply counter-drone radar to US and allied forces.
Shield makes Hivemind autonomy software and the V-BAT and X-BAT autonomous aircraft. A Shield spokesperson said the company expects autonomous aircraft to need more capable onboard sensors and that Echodyne’s radar is built for that use. Shield has not announced a specific integration with either aircraft.
After closing, Echodyne is to operate as a standalone unit within Shield’s mission systems business. Its radars are to remain available as standalone products, and it will continue serving defense, government and commercial customers. Frankenberg will report to Shield CEO Gary Steele and remain responsible for Echodyne’s products, manufacturing, and partner and customer relationships. Shield says it has no planned workforce reductions and employees will not be required to relocate.
Shield says it is raising $2.5 billion to support the transaction. The financing comprises $1 billion in Series H equity, $1 billion in structured equity from Blackstone-managed funds and $500 million in debt financing led by JPMorgan Chase Bank. Shield also plans to use its own cash.
The companies expect the acquisition to close in early 2027, subject to applicable regulatory approvals and other customary closing conditions.
Blackstone and JPMorgan Chase led the reported Series H round, which Shield AI says it will combine with existing cash to fund its agreed $5.3 billion purchase of Echodyne.
2 min
