Canada-headquartered marine technology player Kraken Robotics has closed the acquisition of the UK’s Covelya Group for approximately CA$615 million, resulting in geographic expansion and improved business diversification, among other things.
Covelya Group designs, manufactures, sells and supports high-performance underwater technology for maritime defense and commercial customers, through its subsidiary companies Sonardyne International, EIVA, Forcys, Wavefront Systems, Voyis Imaging, and Chelsea Technologies.
Kraken sees the acquisition as a path to deeper customer relationships in the defense and maritime surveillance market, expanded product offering and total addressable market in subsea technology, new strategic locations for geographic expansion and improved business diversification, bolstered technical capabilities, as well as financial accretion across key metrics, including CA$10 million of cost synergies within 24 months.
“This acquisition positions Kraken as a global provider of mission-critical, dual-use subsea intelligence solutions,” said Greg ReidCEO of Kraken Robotics. “Together, Kraken and Covelya Group bring complementary products, technological capabilities, and customer relationships that we expect will strengthen Kraken’s growth potential and long-term outlook. This positive long-term outlook is further supported by the expected increase in defence budgets globally, including growing investment in autonomous underwater systems.”
The approximately CA$615 million purchase price, prior to closing adjustments, was comprised of approximately CA$480 million in cash and approximately CA$135 million through the issuance of 15,882,352 common shares of Kraken at a deemed issue price of CA$8.50 per common share to Covelya Group’s shareholder.
Since reporting its Q1 2026 results in May, Kraken and Covelya have secured additional product orders of approximately CA$13 million and CA$17 million, respectively. These awards bring announced orders in 2026 to approximately CA$110 million for Kraken and CA$182 million for Covelya Group.
As part of its integration with Covelya and its subsidiaries, Kraken is implementing a new organizational structure which will consist of Kraken Group, set to focus on financial and organizational governance, and a clearly delineated Kraken Robotics operating business, whose business units will focus on operational excellence, strategic execution, and financial performance.
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