Shield AI agreed to acquire Echodyne in a $5.3 billion transaction announced Thursday, giving the drone maker a major expansion into radar and counter drone capabilities. The deal represents a significant financial move for a company already established in unmanned systems and autonomy software.

Echodyne builds next generation, solid state radar systems using its patented Metamaterials Electronically Scanned Array technology, known as MESA. Its advanced systems are designed to detect drones while remaining flexible enough for incorporation across a wide variety of weapons and monitoring systems.

That flexibility allows Echodyne radar to be incorporated into systems that include high energy lasers and microwave weapons. The technology brings drone detection capabilities to weapons and monitoring platforms built to address a rapidly developing battlefield challenge.

In September, Echodyne received a $250 million contract from JIATF-401, the War Department’s premier national counter drone task force. The agreement calls for the company to provide counter drone technology to military forces over a period of 36 months.

Echodyne CEO Eben Frankenberg told Defense News in July that demand for radar capable of detecting drones is “red hot” and could grow tenfold by 2030. The company’s technology can track small quadcopter drones and monitor more than 1,000 objects at a time.

“There is a rush of interest globally for counter-drone,” Frankenberg told Defense News. “The Ukraine war made it obvious to everyone that drones had changed the face of warfare, but the Iran war made it obvious that everything’s at risk.”

For Shield AI, acquiring Echodyne is a bold expansion of a portfolio already built around unmanned aircraft and autonomy. Shield AI is known as the maker of the X-Bat and V-Bat vertical takeoff and landing systems, also called VTOL drones.

The V-Bat gained attention through its work assisting the U.S. Coast Guard with reconnaissance involving illicit drug trafficking at sea. Those operations enabled law enforcement authorities to carry out large maritime drug busts.

Shield AI also produces Hivemind autonomy software, which supplies AI pilots capable of multi agent teaming and swarming. The software is used across a broad range of unmanned systems rather than being limited to one type of platform.

Those platforms include unmanned aircraft systems, drone boats and spacecraft. The combination of autonomy software, unmanned platforms and Echodyne’s radar technology fits the three areas that Shield AI CEO Gary Steele said the company is pursuing.

Steele said the Echodyne purchase supports Shield AI’s plan to expand into autonomy software, autonomous systems and mission systems. Each area is intended to operate as a mutually supporting business unit within the company.

“We are building a new-generation defense technology company consisting of three fast-growing, high-margin, mutually supporting business units: autonomy software, autonomous systems and mission systems,” Steele said in a statement.

Frankenberg said in a statement that Shield AI’s mission complements Echodyne’s work. He also said he expects unity between the companies to multiply what both can deliver to their customers.

“Hundreds of customers rely on our radars to detect and track drones, protect people and infrastructure, secure borders, and ensure safe airspace operations,” Frankenberg said.

“Shield shares our view that autonomous systems can only act on what they can sense, and superior sensors lead to superior systems and outcomes,” he continued. “By joining Shield, we’re creating a company with the size and breadth to deliver even more value to our broad range of defense, government, and commercial customers around the globe.”