Shield AI announced on Thursday, November 5, 2026, a definitive agreement to acquire Echodyne, a maker of compact counter-drone radars, in a transaction valued at $5.3 billion. Alongside the deal, the defense technology company will raise $2.5 billion, lifting its valuation to $28.8 billion.
Of the total, $4.8 billion will be paid at closing and up to $500 million more depends on Echodyne meeting performance targets. The deal is expected to close in early 2027, subject to regulatory approvals.
The $2.5 billion raise includes $1 billion in a Series H round at a $28.8 billion post-money valuation, $1 billion in structured equity from funds managed by Blackstone, and $500 million in debt led by JPMorgan. According to the companies, the financing will only close if the acquisition closes. The new valuation more than doubles the $12.7 billion mark from March 2026.
Based in Kirkland, Washington, Echodyne makes compact solid-state radars using MESA (Metamaterials Electronically Scanned Array) technology. Its radars are built into hundreds of security and counter-drone systems in more than 40 countries. In September, the company won a contract worth up to $250 million from the U.S. counter-drone task force JIATF-401.
At Shield AI, Echodyne will form the Mission Systems business unit, focused on software-defined radars for detecting, tracking and defeating drones. The company is already known for its Hivemind autonomy software and its V-BAT and X-BAT autonomous aircraft. It is Shield AI's fifth acquisition — and its largest. The earlier ones were Heron Systems and Martin UAV in 2021, Sentient Vision Systems in 2024, and Aechelon Technology in June 2026.
According to investor Madrona, it is the second-largest acquisition of a private venture-backed company in Washington state, behind only Okta's $6.5 billion purchase of Auth0 in 2021. Echodyne was founded in 2014 as a spin-off of the Intellectual Ventures lab, with an initial $15 million round led by Bill Gates and Madrona.
Image credit: Shield AI V-BAT drones during a demonstration. Photo: Shield AI, via UAS Vision.
Sources: Shield AI (official statement, via PR Newswire); GeekWire; Breaking Defense.
Transparency: this article was produced with the help of artificial intelligence, cross-checked against public posts on X and sources from the internet. Please consult the original sources listed above to confirm the details.
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