3D at Depth technician performing a dimensional control survey.
Photo: 3D at Depth / Kraken Robotics.
Canadian marine technology company Kraken Robotics Inc. announced that, through a subsidiary, it has completed the acquisition of 100% of the shares of the U.S. company 3D at Depth Inc. As announced in the pre-agreement made public last month, the purchase amount is USD 17 million.
Now a subsidiary, as it transitions to the Kraken brand, 3D at Depth will continue to operate as a trusted partner in subsea LiDAR (Light Detection and Ranging) imaging, complementing Kraken's suite of synthetic aperture sonar and sub-bottom imaging technologies.
"We are pleased to welcome 3D at Depth to the Kraken Robotics team and look forward to offering our comprehensive subsea intelligence solutions to our clients," stated Greg Reid, President and CEO of Kraken. "Our combined solutions are complementary, enabling us to provide best-in-class technologies to our global customer base across the commercial, defense, and marine research sectors."
Carl Embry, Founder and CEO of 3D at Depth, spoke along the same lines when Kraken Robotics' intended purchase intention was made public in mid-March. "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," he said.
"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," Embry added.
With a 15-year track record, as mentioned above, 3D at Depth is a leading U.S. subsea technology and services company specializing in high-resolution LiDAR imaging and measurements. Headquartered in Longmont, Colorado, U.S., where its production plant is located too, it also has offshore service operations based in Houston, Texas, and satellite offices in Norwich and Aberdeen, UK.
The company, which employs 56 people, has grown revenue at a 20% CAGR (compound annual growth rate) over the last three years and reported 2024 unaudited USD GAAP (generally accepted accounting principles) revenues of USD 14 million, gross profit of USD 8.4 million (60%), and USD 1.1 million of operating income.
It experienced management and highly specialized engineers, technical teams, and operational personnel have completed over 450 projects in 18 countries across six continents, and, driven by the growing demand for subsea LiDAR technology due to the need for greater accuracy, improved data resolution and better analytics for safe and cost-effective management of subsea assets and infrastructure, over the past three years, the average value of 3D at Depth projects has increased by more than 45%.
Likewise, Kraken also noted that the new addition to its group has an "attractive and diversified" customer base consisting of leading companies in offshore oil and gas and other underwater industries. The company has more than 60 global clients and over 25 Master Service Agreements (MSAs).
Moreover, in addition to geographic expansion and existing client growth, 3D at Depth is well positioned to diversify in emerging markets such as offshore wind, aquaculture, and subsea mining so, according to Kraken, demand for its data solutions is expected to continue to increase, especially as offshore operators continue to embrace digital twin technology.
On top of all this, there are synergies available. Kraken said that the combined company can generate cost synergies across supply chain, facilities, insurance, and professional fees and announced that it will leverage these synergies to accelerate technology development on platforms more quickly and efficiently. The feedback between R&D and the implementation of new technologies in Kraken's services business will strengthen continuous innovation.
Among these potential synergies in terms of technology development, Kraken highlighted in particular the complementarity of Kraken's SeaVision systems with 3D at Depth's underwater LiDAR technology.
While Kraken's SeaVision systems have acquired terabytes of subsea data in multiple countries, 3D at Depth's subsea LiDAR technology can provide it with greater range, especially in deep water conditions (>300 m), and unique capabilities such as non-contact measurement of vibration and temperature. In addition, the new Kraken Robotics subsidiary's remote operations expertise enables scalable and fully remote metrology solutions.
A strategic entry point into the U.S. market
"The acquisition of 3D at Depth builds upon Kraken's expertise in subsea optical systems, developed through our SeaVision product line, and significantly expands our subsea service offering by adding high-value, high-margin solutions that feature differentiated capabilities," the President and CEO of Kraken explained last month.
However, these are not the only advantages that the acquisition of the American company provides to the Canadian company, especially amid the trade war opened by the application of the U.S. tariffs ordered by the Trump administration.
"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," Greg Reid said.
"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 U.S.-based facilities enhances our ability to scale manufacturing operations in the U.S. as demand continues to grow," he concluded.
