Add as a preferred source on GoogleShield AI Plans $5.3 Billion Echodyne Deal at $28.8 Billion Valuation
The proposed purchase includes $4.8 billion in cash and equity, plus $500 million tied to Echodyne milestones. Shield AI also plans to raise $2.5 billion to support the deal.
Shield AI plans a $5.3 billion acquisition of Echodyne, a transaction that would more than double the defense-AI company's valuation to $28.8 billion and pair its autonomous aircraft software with radar sensors.
The proposed purchase is structured as $4.8 billion in cash and equity, plus $500 million tied to Echodyne meeting milestones.
Shield AI also plans to raise $2.5 billion in new funding to support the acquisition. The financing package would include $1 billion in structured equity from Blackstone and $500 million in debt from JPMorgan.
The company previously completed a $1 billion Series H funding round. The planned financing is expected after the acquisition closes.
The deal and financing would value Shield AI at $28.8 billion, more than twice its $12.7 billion valuation in March. Founded in 2015, Shield AI develops Hivemind, an AI software system for autonomous aircraft. Echodyne makes radar sensors.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.