Vatn Systems Acquires Acoustics Firm to Deepen Undersea Dominance

PORTSMOUTH, RI – January 07, 2026 – In a move that signals a significant deepening of its technological capabilities, defense startup Vatn Systems today announced its acquisition of Crewless Marine, a Rhode Island-based specialist in underwater acoustic sensing. The deal brings critical sensor and signal processing technology in-house for Vatn, a rapidly growing builder of autonomous underwater vehicles (AUVs) for military and commercial clients.

The acquisition is a clear execution of Vatn's strategy to vertically integrate its technology stack, a move designed to secure its supply chain, accelerate development, and solidify its position in the increasingly competitive undersea warfare market. The financial terms of the deal were not disclosed.

"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," said Nelson Mills, co-founder and CEO of Vatn Systems, in a statement. "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 environment monitoring markets."

A Strategic Play for Vertical Integration

Vatn's acquisition of Crewless Marine is more than a simple corporate transaction; it represents a calculated maneuver in the high-stakes world of defense technology. The decision to vertically integrate—bringing essential manufacturing and technology development under one roof—is becoming a defining strategy for next-generation defense contractors aiming to outpace legacy competitors. By internalizing acoustic sensing, Vatn gains direct control over a foundational component of its AUVs.

This strategy directly addresses several industry-wide challenges. It enhances supply chain resilience by reducing dependence on external subcontractors, a critical vulnerability in the current geopolitical landscape. It also allows for tighter quality control and protects valuable intellectual property. For a company like Vatn, which aims to produce AUVs at an unprecedented scale, controlling the full production pipeline can lead to significant cost efficiencies and more predictable manufacturing timelines.

Most importantly, vertical integration fuels the speed of innovation. With Crewless Marine's team and technology fully integrated, Vatn can create a seamless feedback loop between sensor development, platform design, and software implementation. This agility is crucial for responding to the rapidly evolving requirements of modern naval operations, where autonomous systems are expected to perform increasingly complex missions.

The Acoustic Edge: Uniting Technology and Talent

At the heart of the acquisition is the highly specialized expertise of Crewless Marine. Founded in 2023 by former Navy engineers, the company has developed a sophisticated portfolio focused on hydrophone manufacturing, real-time signal processing, and sensor data fusion. Their product line includes multi-hydrophone arrays like the CMOne series, which are specifically built for autonomous platforms and have been tested in diverse real-world marine environments.

Crucially, Crewless Marine is executing a Navy Small Business Innovation Research (SBIR) contract for "AI/ML Multi-Sensor/Multi-Target Localization." This project aims to develop artificial intelligence algorithms that can fuse data from disparate sensor arrays to create a single, unified tactical picture. The technology moves beyond traditional methods to enable rapid and highly accurate identification and tracking of multiple underwater targets, a capability that will dramatically enhance the intelligence and effectiveness of Vatn's AUVs.

Equally valuable is the human capital Vatn gains. Crewless Marine co-founders Dr. Steve Bordonaro and Dr. Philip Caspers will join Vatn's leadership team as Chief Engineer for Systems and Director of Acoustics, respectively. Dr. Bordonaro brings over 30 years of experience, including a distinguished career at the Naval Undersea Warfare Center (NUWC) where he served as Chief Scientist for the Sensors and Sonar Department and led torpedo guidance and control development. This direct infusion of decades of institutional Navy R&D knowledge is expected to profoundly influence Vatn's product roadmap.

"Joining Vatn allows us to scale the technologies we've spent our careers developing and bring them to a broader set of missions," said Steve Bordonaro. "We're excited to accelerate what's possible in acoustic sensing and undersea warfare together."

Fueling an Ambitious Growth Trajectory

The acquisition comes on the heels of a series of major milestones that underscore Vatn Systems' rapid ascent since its founding in 2023. Just last month, the company announced a $60 million Series A funding round led by BVVC, with participation from an influential syndicate of investors including defense giants Hanwha, Lockheed Martin Ventures, and SAIC Ventures. This influx of capital, bringing its total raised to $76.5 million, is earmarked for scaling manufacturing to meet what Vatn describes as a surging demand for its AUVs.

The company has stated its goal is to produce tens of thousands of its Skelmir series AUVs by the end of 2026, a production target that necessitates the kind of supply chain control this acquisition provides. This domestic manufacturing push is complemented by a growing international footprint. The press release also highlighted Vatn's first international sale to Singapore's Defense Science and Technology Agency (DSTA), a key U.S. ally in the Indo-Pacific, signaling strong global interest in its scalable, next-generation underwater systems.

Viewed in this context, the purchase of Crewless Marine is a strategic deployment of capital to secure a core technological advantage. It ensures that as Vatn scales its production, it will not be bottlenecked by external suppliers of one of its most critical subsystems.

Reshaping the Undersea Competitive Landscape

With this move, Vatn Systems is aggressively positioning itself not just as a technology supplier but as a future defense prime contractor for the underwater domain. By embedding advanced acoustic capabilities directly into its platforms, Vatn can offer a more integrated, powerful, and potentially cost-effective solution than competitors who must assemble systems from various third-party vendors. This challenges established players like L3Harris, Raytheon, and Kongsberg by changing the value proposition.

Furthermore, the acquisition opens new revenue streams. The advanced acoustic sensing technology from Crewless Marine has clear dual-use applications. Beyond military AUVs, the systems can be deployed for commercial and scientific purposes, including harbor security, critical infrastructure monitoring, offshore wind farm maintenance, and environmental research such as marine mammal tracking and underwater noise pollution analysis. This diversification could provide stability and additional resources to fuel its primary defense mission.

By combining massive financial backing, international market validation, and now the strategic acquisition of core sensor technology and talent, Vatn Systems is methodically assembling the pieces needed to achieve its ambitious goal. The company is not just building drones; it is building a comprehensive, vertically integrated powerhouse aimed at defining the future of autonomous undersea warfare.