Kraken Robotics to Acquire Covelya Group for $615 Million
Kraken Robotics Inc. announced on March 3, 2026, that it has signed an agreement to acquire Covelya Group for $615 million, expanding its global maritime technology capabilities.
Ocean Engineering Expansion: Kraken Robotics Inc. has announced a significant strategic move, entering into an agreement to acquire the Covelya Group for approximately $615 million. This acquisition, slated for completion on March 3, 2026, aims to bolster Kraken's global maritime capabilities by integrating Covelya's specialized underwater technology solutions.
Transaction Details: The deal involves a cash payment of $480 million and $135 million in Kraken common shares. The acquisition is expected to position Kraken as a major supplier in the dual-use subsea technology market. Covelya Group, headquartered in the United Kingdom, brings a portfolio of companies including Sonardyne International, EIVA, Forcys, Wavefront Systems, Voyis Imaging, and Chelsea Technologies. The group reported projected 2025 revenues between $249 million and $275 million.
Strategic Rationale: Kraken anticipates that the acquisition will enhance its product offerings, expand its total addressable market in subsea technology, and deepen customer relationships, particularly within the defense and maritime surveillance sectors. The combination is expected to yield synergistic revenue and cost benefits, while also improving Kraken's geographic diversification and technical expertise. The company highlighted Covelya's strong growth trajectory and attractive profit margins.
Market Position: Covelya Group specializes in the design, manufacturing, and support of underwater technology for both defense and commercial clients, focusing on navigation, communication, imaging, and monitoring systems for uncrewed and crewed vessels. The combined entity aims to offer more integrated solutions by merging Kraken's subsea batteries and sonar technology with Covelya's navigation and communication systems. This move is seen as strategically beneficial in a rapidly growing industry market.
Financial Outlook: Kraken Robotics also provided preliminary year-end 2025 results and standalone guidance for 2026. The company plans to finance a significant portion of the acquisition through a public offering of subscription receipts totaling $350 million. This strategic expansion is intended to strengthen Kraken's balance sheet and support future growth initiatives.