Shield AI to acquire Echodyne in deal valued at up to $5.3 billion

AI · First reported 5 Nov, 16:00 · Updated 18:22

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Shield AI has agreed to acquire Kirkland-based radar maker Echodyne, paying $4.8 billion at closing and potentially another $500 million if performance targets are met. The deal is expected to close in early 2027, subject to regulatory approval. Shield is also raising $2.5 billion to help finance the acquisition, at a stated valuation of $28.8 billion.

Echodyne makes compact radar systems used in counter-drone and security applications in more than 40 countries; its customers include the US military.
Shield said the acquisition would help it expand beyond government and military customers into civilian uses such as public safety.
Shield plans to pay $4.8 billion when the transaction closes, with up to $500 million more tied to Echodyne meeting performance targets. The financing is conditional on the deal proceeding.
The reports say the acquisition is expected to close in early 2027; GeekWire notes that regulatory approvals are pending.
GeekWire reports no layoffs are planned and Echodyne employees will not be required to relocate; Echodyne CEO Eben Frankenberg is to remain in his role.

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Key facts

Acquisition value: Up to $5.3 billion; $4.8 billion at closing plus up to $500 million tied to performance targets.
Shield AI valuation: $28.8 billion.
Planned financing: $2.5 billion in equity and debt.
Expected closing: Early 2027, with regulatory approval pending according to GeekWire.
Echodyne headquarters: Kirkland, Washington.