Marine technology company Kraken Robotics, through a subsidiary, has signed a definitive agreement and plan of merger to acquire 3D at Depth, a US-based subsea technology and services company.
Under the agreement, Kraken will pay $17m (C$24.51m) in cash for the acquisition, with adjustments for debt and working capital.
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The transaction, subject to customary closing conditions, is due to be finalised by 1 April 2025.
3D at Depth specialises in high-resolution underwater light detection and ranging (LiDAR) technology, providing services such as measurement, inspection and asset monitoring, which are essential for deep-water operations exceeding 300m.
The company provides services to major oil and gas companies including Exxon, Dominion Energy, Husky Energy, Murphy Oil, Nobel Energy, Premier Oil and TotalEnergies.
The acquisition is expected to generate cost synergies in supply chain, facilities, insurance and professional fees for the combined company.
It will integrate 3D at Depth’s Subsea LiDAR technology with Kraken’s SeaVision suite, enhancing range and adding features such as non-contact vibration and temperature measurement.
The deal will also create a strong research and development (R&D) feedback loop as new technologies will be deployed, tested and refined within Kraken’s services business.
Furthermore, the transaction is expected to boost Kraken’s remote operations capabilities, offering scalable metrology solutions.
3D at Depth founder and CEO Carl Embry said: “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.
“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 life cycle of their operations.”
Kraken anticipates that the combined expertise will create a comprehensive toolbox for subsea optical metrology and asset integrity measurement.
The company plans to expand its service and rental pool, said to be the industry’s largest fleet of subsea optical LiDAR systems.
Kraken Robotics president and CEO Greg Reid said: “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 US, with new offices in Texas and Colorado. This acquisition immediately strengthens our presence in the US 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 US market. Following completion of the acquisition, Kraken will be able to offer a more comprehensive suite of world-class subsea acoustic and optical imaging technologies and services, reinforcing our SAS, SeaVision and SeaPower capabilities. Additionally, establishing our first US-based facilities enhances our ability to scale manufacturing operations in the US as demand continues to grow.”
