A Kiwi company is investing in drone boats able to be used for defence - on home shores and beyond.

Robotics company Syos has acquired Tauranga business Bay Dynamics. 

Syos CEO Sam Vye says it will strengthen their position in the surveillance and defence market. 

He adds underwater sabotage is a growing concern overseas. 

"Particularly in the EU around potential sabotage by hostile vessels or vessels from certain countries that might accidentally drag anchor or intentionally disrupt seafloor infrastructure." 

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