Vatn Systems Acquires Crewless Marine to Enhance AUV Acoustic Capabilities
Vatn Systems, an autonomous underwater vehicle (AUV) company, announced that it has acquired Rhode Island-based Crewless Marine, an advanced underwater acoustic sensing and signal processing company, founded by former Navy engineers. The strategic acquisition follows closely on the heels of Vatn’s $60 million Series A funding round in December and aims to enhance the company’s underwater acoustic sensing and processing capabilities, as well as enable greater vertical integration of its technology stack, thereby expediting the development cycle of its autonomous systems.
While the financial details remain undisclosed, Nelson Mills, co-founder and CEO of Vatn Systems, confirmed that Vatn will take full ownership of Crewless and its existing contracts, including a Small Business Innovation Research (SBIR) contract with the U.S. Navy. Steve Bordonaro, co-founder of Crewless, will assume the role of Chief Engineer for Systems, and Philip Casper, also a co-founder, will become Director of Acoustics.
According to Mills: “With this acquisition, we’re solidifying our leadership position in undersea acoustics and accelerating our ability to deliver high-performance, low-cost torpedo solutions at scale.” Mills added, “Acoustic sensing is fundamental to undersea warfare, and owning this capability end-to-end enables us to advance our mission while positioning us to expand into the harbor defense and environmental monitoring markets.”
Founded in 2023, Vatn Systems specializes in developing torpedo-shaped underwater drones, available in two models: the Skelmir S6, featuring a 6-inch diameter and supporting a payload of 10-20 pounds with a range of 20 nautical miles at speeds up to 20 knots (23 mph); and the Skelmir S12, a larger 12-inch diameter AUV capable of carrying up to 250 pounds and traversing over 200 nautical miles at speeds approaching 30 knots (34.5 mph).
The advanced capabilities of these platforms have garnered substantial interest from both investors and the defense industry. The company’s Series A round was led by BVVC and supported by prominent defense sector participants, including Lockheed Martin Ventures, Airbus Ventures, and Hanwha. Additionally, the company previously raised $13 million in seed funding in 2024, with involvement from RTX Ventures, Lockheed Martin Ventures, and In-Q-Tel.
Vatn has invested a significant amount of this capital into expanding its production capacity. In collaboration with Palantir, Vatn scaled its manufacturing operations beginning last April. In May, the company inaugurated a new manufacturing facility in Rhode Island, and in December, plans for an even larger facility capable of producing 2,000 units annually of the S12 and S6 were announced.
Mills explained that Crewless’ sensor and processing technologies will enable Vatn to “build homing and seeking sensors and other acoustic systems that enhance mission capability.” For kinetic operations, these acoustic technologies will improve target detection and engagement accuracy. On the intelligence, surveillance, and reconnaissance (ISR) front, Crewless is capable of detecting vessels, submarines, and other underwater assets, thereby improving situational awareness.
Mills emphasized that the acquisition allows Vatn greater control over its supply chain, noting that approximately 75% of the vehicles’ components can now be produced internally. “This integration enables us to be more price competitive and improve performance by owning the entire technology stack,” stated Mills. “No component of the vehicle remains a ‘black box’; we can pursue highly integrated advancements in autonomy, signal processing for acoustics, and navigation.”
Looking ahead, Mills stated that Vatn is conducting a comprehensive analysis to determine optimal opportunities for acquiring suppliers or insourcing further technology, potentially leveraging Palantir Foundry. “We are assessing key technology stacks necessary for in-house development to maximize competitiveness, accelerate delivery, enhance supply chain resilience, and drive performance improvements,” he added.