Startups
Defence startup Shield AI buys Echodyne for $5.3 billion
The AI drone-pilot maker is buying a radar company and raising $2.5 billion at a $28.8 billion valuation.
In short
$5.3Bdeal for radar maker Echodyne
- Deal value: ~$5.3B
- New funding: $2.5B
- Valuation: $28.8B
What happened
Shield AI, which builds AI software that flies drones and aircraft, agreed to buy radar maker Echodyne for about $5.3 billion. To pay for it, Shield AI is raising $2.5 billion, including a $1 billion round at a $28.8 billion valuation, $1 billion from Blackstone-managed funds and $500 million of debt.
Echodyne sells radars in more than 40 countries. The deal is expected to close in early 2027.
Why it matters
Defence tech is one of the hottest areas for startup investors right now, driven by drones in modern warfare. Shield AI wants to own both the 'eyes' (radar) and the 'brain' (AI pilot) of autonomous systems.
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