Defense technology developer Shield has entered into a definitive agreement to acquire radar manufacturer Echodyne in a transaction valued at $5.3 billion, backed by a concurrent $2.5 billion capital raise.
Under the terms of the agreement, $4.8 billion will be paid and issued at closing, with up to an additional $500 million contingent on Echodyne meeting agreed performance milestones. Shield is raising $2.5 billion to support the acquisition, consisting of $1 billion in Series H funding at a $28.8 billion post-money valuation, a $1 billion structured equity investment from funds managed by Blackstone, and $500 million in debt financing arranged by JPMorgan Chase Bank, N.A. Both companies expect triple-digit revenue growth in the current fiscal year, and the transaction is slated to close in early 2027, subject to applicable regulatory approvals and customary closing conditions.
The acquisition integrates Echodyne into Shield’s Mission Systems business, expanding its capabilities in software-defined radars for counter-unmanned aircraft systems (C-UAS) designed to detect, track, and defeat uncrewed aerial threats. Shield currently develops the Hivemind autonomy software, Aechelon simulation environments for testing and training, and the V-BAT and X-BAT autonomous platforms.
“We are building a new-generation defense technology company consisting of three fast-growing, high-margin, mutually supporting business units: autonomy software, autonomous systems, and mission systems,” said Gary Steele, CEO of Shield. “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 designs and manufactures compact, solid-state radars powered by its patented Metamaterials Electronically Scanned Array (MESA) technology. Its radar systems are integrated across remote weapon stations, high-energy lasers, and high-power microwave systems, and cue interceptors toward incoming targets. Beyond military integration, the company’s sensors are deployed across defense, government, and commercial sectors in more than 40 countries, serving civilian applications such as airspace monitoring around stadiums and airports, as well as enabling safe municipal drone operations. In September, Echodyne was awarded a contract with a $250 million ceiling from Joint Interagency Task Force 401 to deliver counter-drone radars to U.S. and allied forces.
“Hundreds of customers rely on our radars to detect and track drones, protect people and infrastructure, secure borders, and ensure safe airspace operations,” said Eben Frankenberg, CEO of Echodyne. “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 defense, government, and commercial customers around the globe.”
Following the completion of the acquisition, Echodyne will continue operating its existing business model, supplying high-performance radar hardware to integrators and commercial clients, with MESA radars remaining available as standalone products. Echodyne’s existing team will remain intact, and Frankenberg will report directly to Steele while overseeing product development, manufacturing operations, and customer engagements.
The transaction also expands Shield’s manufacturing footprint in Washington, where Echodyne recently opened a $40 million, 86,350-square-foot facility capable of producing approximately 30,000 radars annually. Shield previously selected Washington in September as the production hub for its X-BAT platform.
The Series H financing is co-led by Disruptive and Innovation X Capital, with participation from Advent, the Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative, Snowpoint Ventures, Apandion, Center15 Capital, and others. Advisory roles on the transaction include J.P. Morgan Securities LLC as exclusive financial advisor to Shield, with legal counsel from Wachtell, Lipton, Rosen & Katz, regulatory diligence advisory from Covington & Burling LLP, and Sullivan & Cromwell LLP advising on financing. Morgan Stanley & Co. LLC and Robert W. Baird & Co. Incorporated served as financial advisors to Echodyne, with Fenwick & West LLP providing legal counsel.
