Shield AI agrees to buy counter-drone radar maker Echodyne for $5.3 billion

US defense company Shield AI has struck a deal to acquire Echodyne, a maker of compact radars for detecting and tracking drones. The total value of the transaction could reach $5.3 billion. The deal is expected to close in early 2027 after receiving regulatory approvals. 

This was announced in statements from the companies.

At closing Shield AI will transfer $4.8 billion in cash and securities. Up to $500 million more will depend on whether Echodyne meets agreed performance targets.

To finance the deal Shield AI is raising $2.5 billion. Of that, $1 billion comes from a Series H funding round, after which the company is valued at $28.8 billion. Another $1 billion will be invested by funds managed by Blackstone, and $500 million will be debt financing arranged by JPMorgan Chase.

Why Shield AI acquired radar maker Echodyne

Shield AI develops autonomy software called Hivemind and unmanned systems V-BAT and X-BAT. Acquiring Echodyne will add radars to its portfolio that detect drones, track their movement and relay target data to interception systems.

Such radars are already integrated into combat modules, laser and microwave systems. In the civilian sector they are used, among other things, to protect airports and stadiums from unauthorized drone flights.

According to the companies, Echodyne radars are part of hundreds of counter-drone and security systems used in more than 40 countries. In September Echodyne received a contract with a not-to-exceed value of $250 million to supply counter-drone radars for US and allied forces.

Echodyne recently opened a manufacturing site in Washington state, in which it invested $40 million. The company estimates it will be able to produce about 30,000 radars a year. After closing, Echodyne’s team will continue to operate, and its radars will remain available as standalone products.

Echodyne radars are also used in Ukraine, reported in July by Defence Blog. In comments to the outlet the company said battlefield experience in Ukraine is a key factor changing requirements for counter-drone radars.

Also in March 2026 the US State Department signed a contract with Echodyne for nearly $15 million to supply radar systems for use in Ukraine. The contract covers spare parts, training and technical support.

Also read: French DefTech startup Alta Ares will supply NATO with counter-drone systems