StartupsNov 6, 2026, 6:23 PM UTC·1 min read

Shield AI to Acquire Radar Maker Echodyne for $5.3 Billion

Shield AI has agreed to buy drone-detection radar maker Echodyne for up to $5.3 billion, backed by $2.5 billion in new financing at a $28.8 billion valuation.

A compact radar unit designed to detect and track drones, mounted outdoors against a evening sky. — Image: Webrazzi

Defense technology company Shield AI has agreed to acquire Echodyne, a maker of radar systems that detect and track drones. The company will pay $4.8 billion at closing, with up to $500 million more if Echodyne hits agreed performance targets, bringing the total value to as much as $5.3 billion. The deal is expected to close in early 2027, pending regulatory approvals.

$2.5 billion in financing

Shield AI is funding the purchase with $2.5 billion in total financing. One billion dollars comes from a Series H round co-led by Disruptive and Innovation X Capital, which lifts the company's post-money valuation to $28.8 billion. Another $1 billion is structured capital from funds managed by Blackstone, and the remaining $500 million is debt financing arranged by JPMorgan Chase.

What Echodyne brings

Echodyne, backed by Bill Gates, builds compact radars using its patented MESA technology. Its radars are used in hundreds of security and drone defense systems across more than 40 countries. In military settings they spot and track incoming drones and pass targeting data to interception systems. In civilian use they detect unauthorized drone flights around airports and stadiums. In September, Echodyne signed a contract worth up to $250 million to supply radars to US and allied forces.

Shield AI develops the Hivemind autonomy software and the V-BAT and X-BAT aircraft. The acquisition adds radars used in drone defense to its portfolio.

Once the deal closes, the Echodyne team will stay in place and its radars will continue to be sold as standalone products. Echodyne CEO Eben Frankenberg will report directly to Shield AI CEO Gary Steele.

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Tags:shield aiechodyneacquisitiondrone defenseradardefense tech