Shield AI to acquire Echodyne for $5.3 billion — Breaking Defense

In Washington, United States, defense technology company Shield AI announced the acquisition of counter-drone radar manufacturer Echodyne for $5.3 billion. The deal is expected to close in early 2027, Breaking Defense reports.

Radars for countering drones

After the deal is completed, Shield AI will have its own offering in the field of countering unmanned systems. Echodyne says its counter-drone systems are used by defense, government and commercial customers in more than 40 countries.

In September, the Pentagon’s Joint Interagency Task Force 401 selected Echodyne’s Metamaterials Electronically Scanned Array, or MESA, system to supply counter-drone capabilities to the U.S. military. According to Echodyne CEO Eben Frankenberg, hundreds of customers use the company’s radars to detect and track drones, protect people and infrastructure, secure borders, and ensure the safe operation of airspace.

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Terms of the deal

Of the total amount, Shield AI is to pay $4.8 billion at the closing of the deal. Another $500 million will be paid after Echodyne reaches specified performance targets. At the same time, Shield AI raised $2.5 billion in a Series H funding round and through investments by Blackstone and JPMorgan Chase.

Echodyne will operate as a business unit within Shield AI’s mission systems division. Frankenberg will remain Echodyne’s CEO and join Shield AI’s management team, reporting to its CEO, Gary Steele. The company said no staff reductions or relocations of Echodyne employees are planned.

Shield AI may eventually integrate Echodyne’s radars more broadly into its portfolio. At the same time, the company stressed that the deal does not affect its recent decision to cooperate with RTX on a radar for the X-Bat drone, as that project is separate.