The deal calls for $4.8 billion in consideration at closing and up to another $500 million if Echodyne meets agreed performance targets. Shield expects the acquisition to close in early 2027, subject to regulatory approvals and other customary closing conditions.
Disruptive and Innovation X Capital are co-leading the Series H round, with most of the proceeds earmarked for the acquisition. The financing also includes $1 billion in structured equity from funds managed by Blackstone and $500 million in debt arranged by JPMorgan Chase Bank.
The deal would add Echodyne’s radar design and manufacturing operations to Shield’s Mission Systems business, alongside Shield’s existing businesses in autonomy software and autonomous aircraft. Both companies expect triple-digit revenue growth this fiscal year.
“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, Shield’s chief executive. “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’s compact, solid-state radars are used by defense, government and commercial customers in more than 40 countries, from military systems that cue drone interceptors to civilian installations that monitor airspace around airports and stadiums. In September, Joint Interagency Task Force 401 awarded Echodyne a contract with a $250 million ceiling to supply counter-drone radar 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, Echodyne’s chief executive. “Shield shares our view that autonomous systems can only act on what they can sense, and superior sensors lead to superior systems and outcomes.”
Echodyne will keep its team in place and continue offering its radars as standalone products after the deal closes. Frankenberg will report to Steele and remain responsible for Echodyne’s products, manufacturing and relationships with customers and partners.
Echodyne recently opened a $40 million factory in Kirkland, Washington, designed to produce about 30,000 radars a year. The acquisition would expand Shield’s manufacturing presence in the state, which it named in September as the production home for its X-BAT aircraft.
