- Kraken (PNG) has signed a letter of intent to acquire PanGeo Subsea, a specialist in high-resolution 3D acoustic imaging for the sub-seabed
- The company will acquire PanGeo from Argentum Asset Management and Cahill Innovation
- Kraken expects to pay C$18-$24 million over two years for PanGeo based on the latter’s performance over the period
- The acquisition would bring Kraken increased recurring revenue, a more global customer base and complementary subsea surveying expertise
- Kraken Robotics is a marine technology company
- Kraken (PNG) is up 1.43 per cent and is currently trading at $0.71 per share
Kraken (PNG) has signed a letter of intent to acquire PanGeo Subsea, a specialist in high-resolution 3D acoustic imaging for the sub-seabed.
The company will acquire PanGeo from Argentum Asset Management and Cahill Innovation, a member of the Cahill Group of Companies.
Kraken expects to pay C$18-$24 million over two years for PanGeo based on the latter’s performance over the period.
PanGeo’s unaudited consolidated assets as of December 31, 2020 stood at $11.7 million with net debt at $0.4 million.
Unaudited trailing 12-month revenues for the period ended December 31, 2020 were $9 million with a corresponding EBITDA loss of $0.5 million.
If completed, the acquisition would provide Kraken with the following advantages:
- A broader foundation for Kraken to build recurring revenue streams from reduced carbon emissions survey services
- PanGeo has a diversified customer base consisting of leading companies in offshore renewables and offshore energy in Europe, the U.S. and Asia
- PanGeo’s geotechnical and geophysical expertise are complementary to Kraken’s ultra-high-definition subsea imaging technologies
- PanGeo’s Synthetic Aperture Sonar 3D seabed technology augments Kraken’s offerings to provide a more complete range of subsea surveying services
Karl Kenny, Kraken’s President and CEO, commented,
“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 business model as opposed to a product-only strategy.
While customers in the defence 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.”
Moya Cahill, PanGeo’s co-founder and CEO, added,
“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. I am confident that ocean industry customers will benefit from a broader suite of offerings from sensors, platforms and service delivery solutions.”
Kraken Robotics is a marine technology company focused on software-centric sensors, subsea batteries and thrusters, and underwater robotic systems.
Kraken (PNG) is up 1.43 per cent and is currently trading at $0.71 per share as of 9:30 am ET.