Defense technology firm Shield AI has agreed to acquire radar startup Echodyne in a deal valued at $5.3 billion. The transaction includes an upfront payment of $4.8 billion, with an additional $500 million contingent on performance targets.
Shield AI funded the acquisition using its own cash reserves and a $2.5 billion Series H funding round led by Blackstone and JPMorgan Chase. Echodyne will operate as a standalone business unit within Shield AI, and its CEO, Eben Frankenberg, will join the senior executive team.
Echodyne specializes in MESA radar technology, which detects compact autonomous drones. The startup recently secured a $250 million contract with the U.S. Department of Defense to provide tracking technology for the JIATF-401 task force.
Shield AI develops autonomous software and drone systems, including the V-Bat and X-Bat. The company previously acquired Martin UAV Systems in 2021 and Aechelon Technologies in June. Shield AI plans to continue its growth strategy through further acquisitions.
