Shield AI agrees to acquire radar developer Echodyne in multi-billion-dollar transaction

Defense technology company Shield AI has agreed to acquire Kirkland, Washington-based radar manufacturer Echodyne in a deal valued at up to $5.3 billion. Under the terms, Shield will pay $4.8 billion at closing and up to $500 million more if Echodyne achieves specific performance targets. The transaction is expected to close in early 2027, pending regulatory approvals. To fund the purchase, San Diego-based Shield is raising $2.5 billion, which includes $1 billion in new capital at a $28.8 billion valuation. [1][2]

Founded in 2014 as an Intellectual Ventures spinout with backing from Bill Gates, Echodyne builds compact radar systems designed to detect and track drones. The startup has about 400 employees and recently opened a $40 million production facility in Woodinville, Washington. Shield confirmed no layoffs are planned and workers will not need to relocate. Echodyne co-founder and chief executive Eben Frankenberg will continue running the radar business and report directly to Shield CEO Gary Steele. [1][2]

The transaction marks Shield's fifth and largest acquisition to date, aimed at bolstering its autonomous combat capabilities alongside its Hivemind software and drone programs. Steele told Bloomberg that Echodyne represents Shield's first foray into civilian hardware, noting that public infrastructure like stadiums and airports increasingly require counter-drone monitoring. Shield also plans to expand operations in the Seattle area as it prepares to manufacture its AI-piloted X-BAT fighter jet in Des Moines, Washington. [1][2]