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.
Shield AI has announced a $2.5 billion cash injection that it says will help finance its agreed $5.3 billion purchase of radar developer Echodyne. The defense technology company said it would use the financing alongside its own cash.
The deal follows Shield AI’s purchase of drone technology company Martin UAV Systems in 2021 and its acquisition of high-fidelity simulation and physics-based sensor-modeling software developer Aechelon Technologies in June 2026 for an undisclosed price. Shield AI’s V-Bat and X-Bat drones are heavily based on Martin UAV Systems’ technology.
SiliconANGLE said the financing came through a Series H funding round led by Blackstone and JPMorgan Chase. The agreement provides for $4.8 billion at closing and another $500 million if Echodyne meets performance targets that have not been disclosed.
Shield AI develops autonomous drones and Hivemind software for piloting unmanned systems. It says the purchase is intended to improve its autonomous drones’ combat capabilities. Echodyne’s Metamaterials Electronically Scanned Array (MESA) solid-state radar is designed to detect small targets, including compact drones, and can be integrated with weapons and monitoring systems.
Echodyne co-founder and CEO Eben Frankenberg said autonomous systems need to sense their surroundings to carry out their missions. He said joining Shield AI would give the combined company greater scale and breadth for its defense, government and commercial customers.
Shield AI CEO Gary Steele said Echodyne would remain a standalone unit within its mission systems business. Frankenberg would stay on the senior executive team and report to Steele, who said Echodyne would not lay off staff or require employees to relocate.
The companies expect to integrate Echodyne’s radar more closely with Shield AI’s drones over the longer term. Steele said Shield AI would continue considering acquisitions to accelerate its growth strategy.
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.
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