Shield to acquire Echodyne for $5.3 billion and raise $2.5 billion
Shield has agreed to acquire radar company Echodyne in a transaction valued at $5.3 billion, expanding its Mission Systems business into radar and counter-drone technology. Shield is also raising $2.5 billion at a $28.8 billion post-money valuation to support the deal.
- Shield will acquire Echodyne in a transaction valued at $5.3 billion.
- Shield is raising $2.5 billion at a $28.8 billion post-money valuation.
- Echodyne radars support counter-drone and security systems in more than 40 countries.
- The deal is expected to close in early 2027, subject to approvals and closing conditions.
- Echodyne’s team will remain in place after the transaction closes.
Deal structure and financing
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’s financing 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 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 acquisition is expected to close in early 2027, subject to applicable regulatory approvals and other customary closing conditions.
Echodyne adds radar and counter-drone capabilities
Echodyne designs and manufactures compact, solid-state radars using its patented Metamaterials Electronically Scanned Array, or MESA, technology. Its radars are used in counter-unmanned aircraft systems, which detect, track and defeat drones, and are built into hundreds of counter-drone and security systems used by defense, government and commercial customers in more than 40 countries.
The systems are integrated onto remote weapon stations, high-energy lasers and high-power microwave systems, and can cue interceptors toward incoming drones. Civilian operators use the radars to protect stadiums and airports from unauthorized drones and to help police and fire departments fly drones safely in shared airspace.
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. Both companies expect triple-digit revenue growth this fiscal year, according to Shield.
Teams and operations will remain in place
Following the closing, Echodyne will continue its existing strategy of providing radar systems to defense, government and commercial customers. 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 Shield CEO Gary Steele and remain responsible for Echodyne’s products, manufacturing operations, and partner and customer engagement. Echodyne will also extend Shield’s presence in Washington. The company recently opened an 86,350-square-foot manufacturing facility in Kirkland, Washington, a $40 million investment that will be able to produce about 30,000 radars per year.
Shield said the acquisition will support its strategy of building three business units: autonomy software, autonomous systems, and mission systems. Its existing products include Hivemind autonomy software, Aechelon simulation, and the V-BAT and X-BAT autonomous systems. The transaction gives the combined company a broader set of technologies spanning sensing, autonomy and autonomous platforms, while Echodyne’s products and operations remain focused on radar.
