Shield to buy radar maker Echodyne in $5.3 billion deal
US autonomous defense company Shield has agreed to acquire radar manufacturer Echodyne in a deal valued at $5.3 billion. It plans to raise $2.5 billion to finance the transaction.
Shield, a company building autonomous defense systems, has announced an agreement to acquire radar manufacturer Echodyne for $5.3 billion. The deal expands Shield's presence in the counter-drone market, where demand for technology that detects and neutralizes unmanned aircraft is growing. The transaction is expected to close in early 2027, subject to regulatory approvals and other customary conditions.
How the deal is funded
Shield plans to raise $2.5 billion. That includes $1 billion in Series H funding at a $28.8 billion post-money valuation, a $1 billion structured equity investment from funds managed by Blackstone, and $500 million in debt financing led by JPMorgan Chase. Of the $5.3 billion price, $4.8 billion will be paid at closing, while a further $500 million depends on Echodyne meeting agreed performance targets.
What Echodyne brings
Echodyne develops compact, solid-state radars using its proprietary Metamaterials Electronically Scanned Array (MESA) technology. Its systems are integrated into hundreds of security and counter-unmanned aircraft systems in more than 40 countries. The radars detect and track drones and pass targeting information to remote weapon stations, high-energy lasers, high-power microwave systems and interceptor platforms. They are also used to protect airports and stadiums and to help public safety agencies fly drones safely in shared airspace. The company recently won a contract with a $250 million ceiling from Joint Interagency Task Force 401 to supply counter-drone radars to US and allied forces.
Shield's strategy
Shield CEO Gary Steele says the acquisition will speed up delivery of multi-mission capabilities and diversify revenue. Its portfolio already includes Hivemind autonomy software, Aechelon simulation technologies and the V-BAT and X-BAT autonomous aircraft. Echodyne will keep its existing team, its radars will remain available as standalone products, and CEO Eben Frankenberg will report directly to Steele.
Echodyne recently opened an 86,350-square-foot manufacturing facility in Kirkland, Washington, a $40 million investment. At full capacity it will produce about 30,000 radars a year. Both companies expect triple-digit revenue growth this fiscal year.
