Acquisition to expand Shield's Mission Systems business into the fast-growing radar and counter-drone sectors

KIRKLAND, Wash., Nov. 5, 2026 /PRNewswire/ -- Shield today announced it has entered into a definitive agreement to acquire Echodyne Corp., an industry-leading radar company, in a transaction valued at $5.3 billion. Echodyne radars are built into hundreds of counter-drone and security systems used by defense, government and commercial customers in more than 40 countries. Both companies expect triple-digit revenue growth this fiscal year.

Shield is raising $2.5 billion to support the transaction, including $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, N.A. as Sole Arranger. Of the $5.3 billion transaction value, $4.8 billion will be paid and issued at closing and up to an additional $500 million is contingent on Echodyne meeting agreed performance targets.

"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."

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.

"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."

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 $250 million ceiling from Joint Interagency Task Force 401 to supply counter-drone radar to U.S. 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 unauthorized drones and to let police and fire departments fly drones safely in shared airspace.

Following the closing of the transaction, Echodyne will accelerate its existing business strategy of providing high-performance radar systems to integrators and end customers in defense, government and commercial sectors. Its team will remain in place, with MESA® radars remaining available as standalone products. Frankenberg will report directly to Steele and remain responsible for Echodyne's products, manufacturing operations, and partner and customer engagement.

Echodyne also extends Shield's presence in Washington. Based in Kirkland, Washington, Echodyne recently opened an 86,350-square-foot manufacturing facility, a $40 million 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.

The Series H 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. Series H proceeds will be used principally to fund the acquisition. 

The acquisition is expected to close in early 2027, subject to receipt of applicable regulatory approvals and satisfaction of other customary closing conditions. On the acquisition, J.P. Morgan Securities LLC served as exclusive financial advisor to Shield. Wachtell, Lipton, Rosen & Katz served as legal advisor to Shield. Covington & Burling LLP advised Shield on regulatory and business diligence matters. On the financing, Sullivan & Cromwell LLP served as legal advisor to Shield. Morgan Stanley & Co. LLC and Robert W. Baird & Co. Incorporated served as financial advisors to Echodyne. Fenwick & West LLP served as legal advisor to Echodyne.

About Shield 
Founded in 2015, Shield is a defense technology company with the mission of protecting service members and civilians with intelligent systems. Its products include Hivemind autonomy software, V-BAT and X-BAT autonomous systems, and Aechelon simulation and synthetic reality technologies. With offices and facilities across the U.S., Europe, the Middle East and Asia-Pacific, Shield technology supports operations worldwide. For more information, visit www.shield.ai. Follow Shield on LinkedIn, X, Instagram, and YouTube.

Media Contact: Lily Hinz; media@shield.ai

About Echodyne 
Echodyne, the radar platform company, is a U.S. innovator and manufacturer of advanced radar solutions for defense, government, and commercial sectors. The company's proprietary MESA architecture is a rare technology breakthrough in advanced radar engineering and design. Echodyne's innovative MESA technology uses standard materials and manufacturing processes to shatter unit-cost barriers for high-performance radar. The result is a solid-state, low-SWaP, exportable commercial radar with advanced software capabilities that delivers exceptional performance, data integrity, and situational awareness. Echodyne radar systems, including C-UAS and drone radars, are used by systems suppliers, integrators, defense supply chains and end users in more than 40 countries. For more information, visit Echodyne.com.

Media Contact: Leo McCloskey; media@echodyne.com

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SOURCE Shield AI