Shield to buy radar maker Echodyne for $5.3B, raises $2.5B to fund it

Shield, the autonomous drone maker, agreed to acquire Bill Gates-backed radar company Echodyne in a deal valued at $5.3 billion, with $4.8 billion paid at closing and up to $500 million contingent on performance targets. To fund it, Shield is raising $2.5 billion, including $1 billion in Series H at a $28.8 billion valuation, $1 billion in structured equity from Blackstone funds and $500 million in JPMorgan-led debt.

Why it matters: The deal pushes Shield into the fast-growing counter-drone market, adding Echodyne's metamaterials radar, already used in systems across more than 40 countries and backed by a recent $250 million Pentagon contract.