Kraken’s $17 million purchase of US company to uplift its subsea offering

Canada-headquartered marine technology player Kraken Robotics is expanding its U.S. footprint with the acquisition of 3D at Depth, a subsea technology and services company specializing in high resolution LiDAR imaging and measurements.

Kraken Robotics, through a subsidiary, has signed a definitive agreement and plan of merger to acquire 100% of the shares of 3D at Depth for $17 million in cash, subject to adjustment for any debt indirectly assumed or paid out on closing and to customary working capital adjustments, among other things.

3D at Depth offers measurement, inspection, surveying, diagnostics, and asset monitoring and trending solutions with underwater LiDAR technology having been integrated onto various survey platforms including diver platforms, remotely operated vehicles (ROVs), remotely operated towed vehicles (ROTVs), crawlers, and uncrewed underwater vehicles (UUVs).

The company employs 56 people and has grown revenue at a 20% CAGR over the last three years and reported 2024 unaudited US GAAP revenues of $14 million, gross profit of $8.4 million (60%), and $1.1 million of operating income. Its headquarters and production facility are based in Longmont, Colorado, with offshore service operations based out of Houston, Texas, and satellite offices in Norwich and Aberdeen, UK.

According to Kraken, 3D at Depth’s technical expertise, operational excellence and service delivery capabilities for the marine survey market are complementary to its existing service business.

Greg Reid, Kraken’s President and CEO, said that after the acquisition is completed, Kraken will be able to offer a more comprehensive suite of subsea acoustic and optical imaging technologies and services, reinforcing its SAS, SeaVision and SeaPower capabilities.

“With 3D at Depth, we are acquiring an industry leader with an established customer base, strong gross margins, and gain an expanded presence in the United States, with new offices in Texas and Colorado. This acquisition immediately strengthens our presence in the U.S. Gulf region, complementing our historically strong book of subsea services work in Northern Europe. This also provides Kraken with a strategic entry point into the U.S. market,” Reid said.

Kraken estimates the combined company can drive cost synergies across supply chain, facilities, insurance, and professional fees and that its platforms will have a strong R&D feedback loop as new technologies are deployed, tested, and iterated in Kraken’s services business.

The transaction is subject to customary closing conditions, including, without limitation, consent of Kraken’s primary lender and is expected to close on or about April 1.

“We are excited to close this transaction and bring together our high-resolution LiDAR technology with Kraken’s advanced suite of subsea imaging products and services,” said Carl Embry, Founder and CEO of 3D at Depth.

“Integrating with Kraken enables us to accelerate our growth plans by expanding into new geographic markets where Kraken already has an established footprint. In addition, our combined technology and service offerings allow us to bring enhanced and more complete solutions to both of our client bases throughout the lifecycle of their operations.”