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Originally published:

Shield AI buys Echodyne, a maker of counter-drone radars, for $5.3 billion

Defense tech company Shield AI announced on Thursday that it is acquiring Echodyne, which develops drone-detection radars, in a $5.3 billion deal. The deal is expected to close in early 2027 and will give Shield AI its own counter-drone offering.

Shield AI buys Echodyne, a maker of counter-drone radars, for $5.3 billion
Image: Breaking Defense (opens the source site in a new tab)

Echodyne supplies counter-drone systems to defense, government and commercial customers in more than 40 countries. Its MESA radar, based on metamaterials and electronic scanning, was selected in September by the Pentagon's Joint Interagency Task Force 401 to supply counter-drone systems to the US military. After closing, it will operate as a business unit within Shield AI.

Shield AI develops autonomy software used on several Pentagon projects, the V-Bat drone and the larger X-Bat. The company has grown through acquisitions: V-Bat came from its 2021 purchase of Martin UAV, and earlier this year it closed the acquisition of simulation firm Aechelon Technologies.

CEO Gary Steele said the acquisition accelerates its response to demand for multi-mission capabilities and diversifies its revenue. He said the company is now built around three areas: autonomy software, autonomous systems and mission systems.

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