Shield AI has agreed to buy Kirkland-based radar company Echodyne in a deal valued at up to $5.3 billion, with the acquisition expected to close in early 2027 pending regulatory approval. The agreement keeps Echodyne's roughly 400 employees in place, with no planned layoffs and no requirement that workers relocate, and the company's headquarters office is expected to stay in Kirkland.
According to Shield AI, the company has entered into a definitive agreement to acquire Echodyne Corp, with $4.8 billion paid or issued at closing and up to another $500 million contingent on Echodyne hitting performance targets. Shield AI is raising $2.5 billion to support the deal, a package that includes $1 billion in Series H equity financing, $1 billion in structured equity from Blackstone-managed funds, and $500 million in debt financing led by JPMorgan Chase, the company said. About 80% of Echodyne's workforce is based in the greater Seattle area, and the firm has said it will keep manufacturing and research and development operations in the region.
Shield AI chief executive Gary Steele framed the purchase as part of a broader strategy, saying the company is building what he called a new-generation defense technology company consisting of autonomy software, autonomous systems, and mission systems. Steele added that the Echodyne acquisition accelerates efforts to meet growing customer demand for multi-mission capabilities, according to the company's announcement.
A Radar Maker With Global Reach
Echodyne specializes in advanced radar systems, and its technology is built into hundreds of counter-drone and security systems used in more than 40 countries, according to the companies, as reported by GeekWire. The radar systems have been used to protect military bases, monitor airspace for emergency responders, and detect drones at stadiums. Madrona, which was cited by GeekWire, noted that Echodyne's radar technology was used at FIFA World Cup stadiums.
Echodyne told reporters it remains focused on designing and delivering high-performance radars for its growing global customer base, and the company did not directly address whether its radar production would be tied to Shield AI's separate Des Moines facility. An Echodyne spokesperson said demand for our radars remains very high and we will continue robust hiring for the foreseeable future, per the same account.
Fresh off a $40 Million Factory Expansion
The acquisition comes just months after Echodyne cut the ribbon on a new 86,350-square-foot manufacturing facility in Woodinville, a project the company said represented a $40 million investment, as detailed by Echodyne. Shield AI's announcement describes the Woodinville plant as eventually able to produce about 30,000 radars per year, while Echodyne's own release put the figure at more than 30,000 radars annually — a discrepancy the two companies have not reconciled. Echodyne has said it plans to expand operations at the Kirkland and Woodinville facility further, and 425 Business reported the company has tied that growth to the broader challenge of detecting mass drone use, which it says requires not just high-performance economical radars, but the ability to manufacture them at scale.
Shield AI itself has grown through acquisitions before, including its 2021 purchase of Martin UAV — the deal that produced its V-Bat drone and set the stage for its newer X-BAT program — and its purchase of Aechelon Technologies earlier this year, according to Breaking Defense. Shield AI is a technology company specializing in autonomous defense systems, and it expects to employ about 4,000 people in the Seattle region by the early 2030s as production of its X-BAT aircraft ramps up elsewhere in Washington state.
A Separate Buildout Taking Shape in Des Moines
That ramp-up is tied to a different project: Shield AI signed a lease and began developing a manufacturing facility in Des Moines, Washington, in September, where it plans to build the X-BAT, an AI-piloted fighter jet designed to take off and land vertically. The jet is slated to be tested in Kansas, and KOMO News reported the project is projected to bring hundreds of high-paying jobs and more than $300 million in direct investment to the city, with production planned to begin in 2029 and reach full rate in the early 2030s.
Thad Mallory, who per KOMO News helped secure Blue Origin's separate Des Moines lease, said the region's recent aerospace growth wave is unprecedented. Mallory attributed the influx to companies' access to power and skilled workers in the area. Blue Origin has confirmed plans to open an approximately 250,000-square-foot manufacturing facility in Des Moines, which city records suggest could be used for commercial satellite research and development — part of a wider trend of defense and aerospace manufacturers increasing investment and hiring across the Puget Sound region.
How the Deal Stacks Up
If completed, the Echodyne purchase would likely rank as the second-largest acquisition of a private venture-backed company in Washington state history, according to Madrona, trailing only Okta's $6.5 billion acquisition of Auth0 in 2021. KING 5 first reported on the agreement, which remains subject to regulatory approvals and other customary closing conditions before it can be finalized.
