US defense technology startup Shield AI plans to acquire radar sensor company Echodyne for $5.3 billion, according to Bloomberg. The deal comprises $4.8 billion in cash and equity, plus an additional $500 million contingent on Echodyne achieving specific milestones.
To support the acquisition, Shield AI is raising $2.5 billion in new funding, including $1 billion in structured equity from Blackstone and $500 million in debt financing from JPMorgan. Combined with its previously completed $1 billion Series H round, this brings Shield AI's valuation to $28.8 billion, more than double its $12.7 billion valuation from March. The new funding will close after the acquisition is completed. Founded in 2015, Shield AI develops Hivemind, an AI software system for autonomous aircraft.
Shield AI Plans $5.3 Billion Acquisition of Echodyne, Valuing Company at $28.8 Billion
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