Kraken Robotics Enters LOI to Acquire PanGeo Subsea
Kraken Robotics Inc. has entered into a non-binding letter of intent (LOI) in connection with the proposed acquisition of PanGeo Subsea Inc. from Cahill Innovation Inc, a member of the Cahill Group of Companies, and Argentum Asset Management AS.
Moya Cahill, a director of Kraken, is a shareholder of Cahill Innovation Inc, and she resigned as a director of Kraken prior to the approval and execution of the LOI in order to ensure proper governance and review of the transaction by a fully arm’s length board.
PanGeo is a private Canadian services company specializing in high resolution 3D acoustic imaging solutions for the sub-seabed. This proposed acquisition would accelerate Kraken’s transformation to a Robotics/Data as a Service model by increasing recurring service revenue and providing increased exposure to the non-defense market, including the offshore renewable energy market. Following completion of the proposed acquisition, Kraken would offer a holistic solution of world-leading technologies and services in subsea acoustic and optical imaging: Kraken’s suite of ultra-high resolution seabed 3D acoustic imaging sensors, autonomous robotics, and optical laser scanning paired with PanGeo’s suite of leading-edge sub-seabed high resolution 3D acoustic imaging systems.
“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. "While customers in the defense industry generally purchase this technology, in the commercial market customers are more focused on the provision of services by capable third-party companies. We believe that this potential acquisition would 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.”
“Notwithstanding that there is due diligence and negotiation for Kraken to complete this acquisition, this opportunity is very exciting for PanGeo as Kraken and PanGeo are world leaders in seabed and sub-seabed technology applications, respectively," said Moya Cahill, PanGeo’s co-founder and CEO. "Assuming closing of this transaction, I am confident that ocean industry customers will benefit from a broader suite of offerings from sensors, platforms, and service delivery solutions. PanGeo has a more than 10-year commercial track record of providing 3D acoustic imaging solutions to offshore renewable energy, offshore energy, and defense customers.”