Shield AI said on November 5 that it has signed a definitive agreement to acquire Echodyne, the Kirkland, Washington maker of compact counter-drone radars, in a transaction valued at $5.3 billion. Of that, $4.8 billion is paid and issued at closing, with up to $500 million more contingent on Echodyne meeting performance targets; the deal is expected to close in early 2027, subject to regulatory approvals.

To fund it, Shield is raising $2.5 billion: a $1 billion Series H at a $28.8 billion post-money valuation — more than double its $12.7 billion mark from March — co-led by Disruptive and Innovation X Capital, plus a $1 billion structured equity investment from Blackstone-managed funds and $500 million in debt led by JPMorgan Chase Bank. If the acquisition falls apart, the financing does not go through.

Echodyne's solid-state MESA radars are built into counter-drone and security systems used in more than 40 countries, and in September the company won a contract with a $250 million ceiling to supply counter-drone radar to US and allied forces. For Shield — maker of the Hivemind autonomy software and the V-BAT and X-BAT autonomous aircraft — the deal adds a third business line, mission systems, alongside autonomy software and autonomous systems. Echodyne's team stays in place and its radars remain available as standalone products.