KIRKLAND – November 05, 2026 -- Shield has agreed to acquire radar maker Echodyne Corp. in a transaction valued at $5.3 billion, adding software-defined radar to its defense portfolio as demand for counter-drone systems grows. 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 raises $2.5 billion across equity and debt to fund the deal
The financing includes $1 billion in Series H funding at a $28.8 billion post-money valuation. Funds managed by Blackstone are contributing a $1 billion structured equity investment. JPMorgan Chase Bank, N.A., as Sole Arranger, is leading $500 million in debt financing.
Of the $5.3 billion total, $4.8 billion will be paid and issued at closing. Up to $500 million more is contingent on Echodyne meeting agreed performance targets. Series H proceeds will mainly fund the acquisition.
Disruptive and Innovation X Capital co-led the Series H. Participants include Advent, the Strategic Investment Group of JPMorganChase's Security and Resiliency Initiative, Snowpoint Ventures, Apandion and Center15 Capital.
Echodyne adds metamaterials radar to Shield's Mission Systems unit
The deal builds out Shield's Mission Systems business with radars that enable counter-unmanned aircraft systems (C-UAS), which detect, track and defeat drones. Echodyne contributes patented Metamaterials Electronically Scanned Array (MESA) technology, engineering expertise and manufacturing capacity. Shield's existing portfolio includes Hivemind autonomy software, Aechelon simulation, and the V-BAT and X-BAT autonomous systems.
Shield CEO Gary Steele said the company is building three business units: autonomy software, autonomous systems and mission systems. He said the acquisition accelerates its response to demand for multi-mission capabilities and gives it greater access to the counter-drone industry.
September contract carries a $250 million ceiling from JIATF 401
In September, Echodyne won 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 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. Police and fire departments use them to fly drones safely in shared airspace.
New $40 million Washington plant targets 30,000 radars per year
Echodyne recently opened an 86,350-square-foot manufacturing facility in Kirkland, Washington, a $40 million investment. The plant can produce about 30,000 radars per year. In September, Shield named Washington as the production home for X-BAT.
Echodyne's team will remain in place, and MESA radars will stay available as standalone products. CEO Eben Frankenberg will report directly to Steele and keep responsibility for products, manufacturing operations, and partner and customer engagement.
Closing is expected in early 2027 pending regulatory approvals
The transaction is subject to regulatory approvals and customary closing conditions. J.P. Morgan Securities LLC is exclusive financial advisor to Shield. Wachtell, Lipton, Rosen & Katz is Shield's legal advisor, and Covington & Burling LLP advised on regulatory and business diligence. Sullivan & Cromwell LLP advised Shield on the financing. Morgan Stanley & Co. LLC and Robert W. Baird & Co. Incorporated advised Echodyne financially, with Fenwick & West LLP as its legal advisor.