Defense-tech company Shield AI said it will acquire radar maker Echodyne in a deal valued at $5.3 billion. About $4.8 billion is paid at closing, and up to $500 million more depends on Echodyne hitting performance targets. Closing is expected in early 2027.
Shield is raising $2.5 billion to fund the purchase: a $1 billion Series H at a $28.8 billion post-money valuation, a $1 billion structured equity investment from Blackstone funds, and $500 million of debt led by JPMorgan. The new funding only proceeds if the acquisition closes. Bloomberg noted the valuation is more than double the $12.7 billion mark from March.
The deal gives Shield an in-house counter-drone radar offering. Echodyne will operate as a business unit within Shield's mission systems division, its CEO will join Shield's management team, and no job cuts or relocations are planned.