Duncan Looi
SHIELD AI announced it has entered into a definitive agreement to acquire Echodyne Corp., an industry-leading radar company, in a transaction valued at US$5.3 billion. Echodyne radars are built into hundreds of counter-drone and security systems used by defence, government and commercial customers in more than 40 countries. The acquisition is expected to close in early 2027.
The acquisition builds out Shield’s Mission Systems business with software-defined radars that enable counter-unmanned aircraft systems (C-UAS), which detect, track and defeat drones. Echodyne brings cutting-edge metamaterials-based radar technology, engineering expertise and manufacturing capacity to the business. Shield also builds Hivemind autonomy software, Aechelon simulation for training and testing, and the V-BAT and X-BAT autonomous systems.
A company statement read: “Shield is raising US$2.5B to support the transaction, including US$1B in Series H funding at a US$28.8B post-money valuation, a US$1B structured equity investment from funds managed by Blackstone and US$500 million in debt financing led by JPMorgan Chase Bank, N.A. as Sole Arranger. Of the US$5.3B transaction value, US$4.8B will be paid and issued at closing and up to an additional US$500M is contingent on Echodyne meeting agreed performance targets.”
“We are building a new-generation defence technology company consisting of three fast-growing, high-margin, mutually supporting business units: autonomy software, autonomous systems, and mission systems,” said Shield CEO Gary Steele. “The acquisition of Echodyne dramatically accelerates our efforts to meet growing customer demand for multi-mission capabilities, provides increased access to a rapidly expanding counter-drone industry, and further diversifies our revenue streams with sustained, compelling growth for the combined company.”
Echodyne CEO Eben Frankenberg added: “Hundreds of customers rely on our radars to detect and track drones, protect people and infrastructure, secure borders, and ensure safe airspace operations. Shield shares our view that autonomous systems can only act on what they can sense, and superior sensors lead to superior systems and outcomes. By joining Shield, we’re creating a company with the size and breadth to deliver even more value to our broad range of defence, government, and commercial customers around the globe.”
Echodyne designs and manufactures compact, solid-state radars using its patented Metamaterials Electronically Scanned Array (MESA) technology. In September, Echodyne received a contract with a US$250M ceiling from Joint Interagency Task Force 401 to supply counter-drone radar to US and allied forces. Its radars are integrated onto a large number of remote weapon stations, high-energy lasers and high-power microwave systems, and they cue interceptors toward incoming drones. Civilian operators use the same radars to protect stadiums and airports from unauthorised drones and to let police and fire departments fly drones safely in shared airspace.
Echodyne also extends Shield’s presence in Washington. Based in Kirkland, Washington, Echodyne recently opened an 86,350-square-foot manufacturing facility, a US$40M investment, which will be able to produce about 30,000 radars per year. In September, Shield named Washington as the production home for X-BAT.–-shp/adj/dl (Pix:SHIELD AI)
