Canadian marine technology company Kraken Robotics has signed a definitive agreement to acquire 3D acoustic imaging specialist PanGeo Subsea.
PanGeo’s assets consist primarily of human capital, know-how and equipment comprised mostly of sub-bottom imaging units and acoustic imaging units that are used to provide sub-seabed survey services.
The aggregate purchase price for PanGeo is up to $23 million, Kraken said.
Completion of the transaction is subject to certain closing conditions including all required regulatory and stock exchange approvals and the completion of financing for gross proceeds of not less than $10 million within 30 days of execution of the agreement.
“Since plans for our OceanVision project started in 2018, we have been preparing our industry leading Synthetic Aperture Sonar and 3D underwater laser scanning technologies to be used in a robotics/data as a service (RDaaS) business model as opposed to a product only strategy,” said Karl Kenny , Kraken president and CEO.
“We expect that PanGeo will complement Kraken’s existing products and services with a stronger base of recurring revenues. As in the past, we expect PanGeo and Kraken will continue to work with many offshore service companies that prime these jobs and integrate specific scopes of work from various sub-contractors.”
To remind, Kraken Robotics entered into a non-binding letter of intent (LOI) to acquire PanGeo Subsea in April.
The acquisition is expected to accelerate Kraken’s transformation to a Robotics/Data as a Service (RDaaS) model by increasing recurring service revenue and providing increased exposure to the non-defense market, including the offshore renewable energy market.