Shield AI buys radar maker Echodyne for $5.3B at a $28.8B valuation

What happened

Shield AI agreed to buy Echodyne, which makes radars for counter-drone systems, for $5.3B.

Shield AI has agreed to buy radar maker Echodyne for $5.3B and is raising $2.5B to help pay for it, the defence tech startup said on Thursday . Disruptive closed a $10B fund last month to make large bets on late-stage AI and defence companies.

It is raising $2.5B in equity and debt to fund the deal, at a $28.8B valuation. Shield wants Echodyne to help it sell beyond the military, to areas like public safety.

Acquisition Shield AI buys radar maker Echodyne for $5.3B at a $28.8B valuation (what investors price the whole company at) The defence startup's value has more than doubled since March, as it eyes anti-drone work beyond the military. The deal values Shield at $28.8B, more than double what it was worth in March , Bloomberg reported .

The money contains a $1B Series H co-led by Disruptive and Innovation X Capital, $1B of structured equity from Blackstone funds and $500M of debt from JPMorgan. It expects to close in early 2027, and the new funding only goes ahead if it does.

Echodyne, based in Kirkland, Washington, makes compact radars used in counter-drone and security systems in more than 40 countries. It is also building X-BAT, an AI-piloted fighter jet that takes off vertically.