Shield to buy Echodyne for $5.3 billion in counter-drone expansion
Shield has agreed to acquire radar company Echodyne in a transaction valued at $5.3 billion, expanding Shield's Mission Systems business into radar and counter-drone technology. Shield is also raising $2.5 billion, including Series H funding at a $28.8 billion post-money valuation.
- Shield will acquire Echodyne in a deal valued at $5.3 billion.
- Shield is raising $2.5 billion, including $1 billion in Series H funding.
- Echodyne makes MESA-based radar systems for defense, government and commercial customers.
- The acquisition is expected to close in early 2027, subject to approvals.
- Echodyne's team and standalone MESA radar products will remain in place.
Deal combines autonomy software with radar systems
Under the agreement, $4.8 billion of the transaction value will be paid and issued at closing. Up to an additional $500 million will depend on Echodyne meeting agreed performance targets.
Shield said the acquisition will add Echodyne's software-defined radars to its Mission Systems business. The radars support counter-unmanned aircraft systems, or C-UAS, by detecting, tracking and helping defeat drones.
Echodyne designs and manufactures compact, solid-state radars using its patented Metamaterials Electronically Scanned Array, or MESA, technology. The company supplies radar systems to defense, government and commercial customers in more than 40 countries, and said its products are built into hundreds of counter-drone and security systems.
Shield raises $2.5 billion for the transaction
Shield's financing package 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 Bank, N.A. as Sole Arranger.
The Series H round is co-led by Disruptive and Innovation X Capital, with participation from Advent, the Strategic Investment Group of JPMorganChase's Security and Resiliency Initiative, Snowpoint Ventures, Apandion, Center15 Capital, and others. The company said Series H proceeds will be used principally to fund the acquisition.
Shield CEO Gary Steele said the deal supports the company's plan to build “a new-generation defense technology company” with three business units: autonomy software, autonomous systems and mission systems. Shield's existing products include Hivemind autonomy software, Aechelon simulation, and the V-BAT and X-BAT autonomous systems.
Echodyne team and products will remain in place
Following the closing, Echodyne will continue its strategy of supplying radar systems to integrators and end customers in defense, government and commercial markets. Its team will remain in place, and MESA radars will continue to be available as standalone products.
Echodyne CEO Eben Frankenberg will report directly to Steele and remain responsible for the company's products, manufacturing operations, and partner and customer engagement. In September, Echodyne received a contract with a $250 million ceiling from Joint Interagency Task Force 401 to supply counter-drone radar to U.S. and allied forces.
Echodyne recently opened an 86,350-square-foot manufacturing facility in Kirkland, Washington. The facility represents a $40 million investment and will be able to produce about 30,000 radars per year. The acquisition is expected to close in early 2027, subject to applicable regulatory approvals and other customary closing conditions.
