Shield AI plans to acquire Echodyne for $5.3 billion, with a valuation reaching $28.8 billion

According to Bloomberg, the American defense technology startup Shield AI plans to acquire radar sensor company Echodyne for $5.3 billion, which includes $4.8 billion in cash and equity, as well as an additional $500 million contingent on the achievement of milestones by Echodyne.

Shield AI will also raise $2.5 billion in new funding to support the acquisition, which includes $1 billion in structured equity financing provided by Blackstone and $500 million in debt financing provided by JPMorgan Chase. Along with the previously completed $1 billion Series H financing, the company's valuation will reach $28.8 billion, more than doubling from a valuation of $12.7 billion in March. This financing will be in place after the acquisition is completed. Shield AI was founded in 2015 and primarily develops AI software systems called Hivemind for autonomous aircraft.