Shield AI to Buy Radar Maker Echodyne for $5.3 Billion at $28.8 Billion Valuation

According to Bloomberg, Shield AI will pay $4.8 billion in cash and equity, plus up to $500 million more if Echodyne meets certain milestones. Echodyne sells radar sensors to government and commercial customers.

If completed, the purchase would make Shield AI one of the most valuable private defence technology companies. Bloomberg said the $28.8 billion valuation is more than double what Shield AI was worth in March. That month it raised $2 billion at a $12.7 billion valuation and agreed to buy simulation software maker Aechelon Technology, part of a push to build up its software and hardware business through acquisitions. In the weeks since, reports had said Shield AI was seeking a new round at a valuation of at least $20 billion.

Bloomberg reported that the financing comes in three parts: $1 billion of Series H equity at the $28.8 billion valuation, $1 billion of structured equity from Blackstone, and $500 million of debt from JPMorgan Chase. Blackstone funds also put preferred equity into Shield AI's March round.

Buying a radar maker would give Shield AI its own sensing hardware to go with its autonomy software and its V-BAT drone. Radar sensors like Echodyne's are used to detect and track aircraft and drones. Bloomberg's report did not include financial details for Echodyne, such as its revenue.

Bloomberg said Shield AI planned to announce the deal on Thursday. When this story was published, no announcement had appeared on Shield AI's website, and neither company had given a timetable for closing or said whether regulators must approve it. Shield AI's purchase of Aechelon, announced in March, was subject to regulatory approval.