Kraken Robotics Accelerates Global Expansion with Covelya Group Acquisition

Kraken Robotics, a leading marine technology firm headquartered in Canada, has finalized its acquisition of the UK-based Covelya Group for an estimated CA$615 million. This strategic move significantly enhances Kraken’s international presence and diversifies its portfolio within the subsea technology sector.

About Covelya Group and Its Subsidiaries

Covelya Group specializes in the development, production, and support of advanced underwater technologies tailored for both defense and commercial maritime sectors. Its portfolio includes renowned subsidiaries such as Sonardyne International, EIVA, Forcys, Wavefront Systems, Voyis Imaging, and Chelsea Technologies, each contributing unique capabilities in subsea innovation.

Strategic Benefits and Market Opportunities

Through this acquisition, Kraken Robotics aims to deepen its engagement with defense and maritime surveillance clients, broaden its product range, and expand its total addressable market in subsea technologies. The deal also opens new strategic locations, enhancing Kraken’s global footprint and operational diversification. Additionally, the integration is expected to strengthen technical expertise and deliver financial benefits, including anticipated cost synergies of CA$10 million within two years.

“This acquisition establishes Kraken as a worldwide provider of essential, dual-use subsea intelligence solutions,” stated Greg Reid, CEO of Kraken Robotics. “By combining Kraken’s and Covelya’s complementary technologies and customer bases, we foresee substantial growth potential and a robust long-term outlook. This is further reinforced by the global uptick in defense spending, particularly in autonomous underwater systems.”

Financial Structure of the Acquisition

The transaction, valued at approximately CA$615 million before closing adjustments, was structured with around CA$480 million paid in cash and CA$135 million settled through the issuance of 15,882,352 Kraken common shares at a price of CA$8.50 per share to Covelya’s shareholders.

Recent Order Growth and Integration Plans

Following the announcement of Kraken’s Q1 2026 financial results in May, both Kraken and Covelya have secured additional contracts valued at approximately CA$13 million and CA$17 million, respectively. These new orders bring Kraken’s total confirmed 2026 bookings to roughly CA$110 million and Covelya’s to about CA$182 million, underscoring strong market demand.

To streamline operations post-acquisition, Kraken is introducing a revised organizational framework. This will feature the Kraken Group, responsible for overarching financial and governance functions, alongside a distinct Kraken Robotics operating division focused on operational efficiency, strategic initiatives, and financial outcomes.