Defense technology company Shield AI said Thursday it has agreed to acquire Kirkland, Washington-based radar maker Echodyne Corp. in a deal valued at $5.3 billion and is raising $2.5 billion of capital to support the purchase².

The financing includes $1 billion of Series H equity at a $28.8 billion post-money valuation, a $1 billion structured equity investment from funds managed by Blackstone, and $500 million of debt financing led by JPMorgan Chase Bank, N.A. as sole arranger, according to a statement issued through PR Newswire².

Techmeme, summarizing a Bloomberg report, said the Series H valuation is up from $12.7 billion in March¹. That prior figure does not appear in Shield AI's statement².

Of the $5.3 billion transaction value, $4.8 billion will be paid and issued at closing, with up to an additional $500 million contingent on Echodyne meeting agreed performance targets, the companies said². Series H proceeds will be used principally to fund the acquisition².

Shield AI said Echodyne radars are built into hundreds of counter-drone and security systems used by defense, government and commercial customers in more than 40 countries, and that both companies expect triple-digit revenue growth this fiscal year². The statement said the deal expands Shield's Mission Systems unit into radar and counter-unmanned aircraft systems².

Echodyne uses metamaterials electronically scanned array radar and in September received a contract with a $250 million ceiling from Joint Interagency Task Force 401 to supply counter-drone radar to U.S. and allied forces, according to the release². The company recently opened an 86,350-square-foot manufacturing facility, described as a $40 million investment, with capacity of about 30,000 radars a year².

After closing, Echodyne's team is to remain in place, with its radars still sold as standalone products, and CEO Eben Frankenberg is to report to Shield CEO Gary Steele, the companies said². The Series H is co-led by Disruptive and Innovation X Capital, with participation from Advent, JPMorganChase's Strategic Investment Group, Snowpoint Ventures, Apandion, Center15 Capital and others².

The acquisition is expected to close in early 2027, subject to regulatory approvals and other customary conditions². Whether the deal clears those reviews, and whether Echodyne hits the targets tied to the contingent payment, were not known from the materials reviewed^1,2.