Shield AI, maker of the Hivemind autonomy software, agrees to buy radar maker Echodyne for $5.3bn and raises $2.5bn at a $28.8bn valuation

Shield AI, which makes the Hivemind autonomy software and V-BAT drones and calls itself Shield in its release, has signed a definitive agreement to buy Echodyne, a radar maker, in a deal valued at $5.3bn, it said on 5 November. Of that, $4.8bn is paid and issued at closing, and up to $500m depends on Echodyne meeting agreed performance targets.

At the same time Shield AI is raising $2.5bn: $1bn in Series H equity at a $28.8bn post-money valuation, co-led by Disruptive and Innovation X Capital; a $1bn structured equity investment from funds managed by Blackstone; and $500m of debt led by JPMorgan Chase Bank.

Echodyne makes compact solid-state radars based on its patented MESA technology. Shield AI says they are built into hundreds of counter-drone and security systems and used by defence, government and commercial customers in more than 40 countries. Radar gives an autonomous aircraft a way to sense other objects without relying on cameras or GPS, which fits Shield AI's software for flying drones without a pilot.

The deal is expected to close in early 2027, subject to regulatory approvals. Neither company is listed, so the figures are the companies' own and no market price stands behind the valuation.

• Confirmed The Echodyne deal is valued at $5.3bn: $4.8bn at closing and up to $500m contingent on performance targets. Shield AI
• Confirmed Shield AI is raising $2.5bn, including $1bn of Series H equity at a $28.8bn post-money valuation, $1bn from Blackstone funds and $500m of debt led by JPMorgan. Shield AI
• Claimed Shield AI says Echodyne's radars are used by customers in more than 40 countries. Shield AI