Shield agrees to acquire Echodyne in $5.3 billion transaction

Shield has signed an agreement to acquire radar maker Echodyne in a transaction valued at $5.3 billion, expanding the defense technology company into radar and counter-drone systems. The acquisition has not closed. The companies expect to complete it in early 2027, subject to regulatory approvals and other customary conditions.

Shield said it is raising $2.5 billion to support the transaction. The package consists 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 led by JPMorgan Chase Bank as sole arranger. Shield said the Series H proceeds will be used principally for the acquisition.

The stated deal value includes $4.8 billion to be paid and issued at closing, plus as much as $500 million contingent on Echodyne meeting agreed performance targets. The companies did not disclose the mix of cash, stock or other consideration within the $4.8 billion.

The planned acquisition would add Echodyne’s software-defined radars to Shield’s Mission Systems business. Echodyne’s Metamaterials Electronically Scanned Array, or MESA, architecture steers radar beams electronically in a compact, solid-state system. The radar provides tracking data that counter-unmanned-aircraft systems can use to detect and follow drones. Shield also develops autonomy software, autonomous aircraft and simulation products.

Shield and Echodyne said that, after closing, Echodyne’s staff will remain in place and its MESA radars will continue to be sold as standalone products. Echodyne CEO Eben Frankenberg would report to Shield CEO Gary Steele while continuing to oversee Echodyne’s products, manufacturing, partners and customer relationships.

The companies said Echodyne radars are integrated into hundreds of counter-drone and security systems used in more than 40 countries and forecast triple-digit revenue growth in the current fiscal year. Those customer, deployment and growth figures are company claims; the opened materials did not include audited financial statements or an independent deployment count.

The deal follows two expansions Echodyne announced this year. In September, Echodyne received an indefinite-delivery, indefinite-quantity contract supporting the Joint Interagency Task Force 401 Domestic Shield program. The company said the agreement has a $250 million ceiling and an ordering period of up to 36 months, creating a procurement path for counter-drone radar for U.S. and allied users. A ceiling sets the maximum potential value and does not guarantee that amount will be ordered.

In July, Echodyne opened an 86,350-square-foot manufacturing facility in Washington state. The company described it as a $40 million investment with eventual capacity to produce more than 30,000 radars annually. That output figure is a stated capacity target, not a reported current production rate.

The announcements did not include the definitive acquisition agreement, financing documents or a list of the regulatory jurisdictions whose approval is required. Their joint announcement said Echodyne will continue serving defense, government and commercial customers if the transaction closes.