Kraken Robotics Acquires Covelya Group for $615M

Kraken Robotics Inc. is set to significantly amplify its global footprint in underwater technology through a substantial acquisition of Covelya Group Limited, valued at approximately $615 million CAD. This strategic move, announced on March 3, 2026, aims to consolidate Kraken's position as a premier provider of dual-use subsea solutions, particularly for the burgeoning defense and maritime surveillance sectors.

The transaction is structured with a cash component of $480 million and an issuance of $135 million in common shares, signaling a strong commitment from both parties. To finance this ambitious undertaking, Kraken has secured a new $150 million, 5-year credit facility. Complementing this, a significant $350 million bought-deal public offering of subscription receipts, priced at $8.50 per receipt, is being underwritten by a syndicate of leading financial institutions, including Scotiabank and Desjardins Capital Markets.

Covelya Group, a conglomerate formed in 2020 and anchored by the venerable Sonardyne International Ltd. (a company with over five decades of experience), brings a robust portfolio of underwater technologies. Its six operating subsidiaries – Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd. – offer a comprehensive suite of navigation, communication, positioning, imaging, and monitoring systems, alongside remotely operated towed vehicles. This diverse capability set caters to a wide array of defense and commercial maritime clients.

The combined entity is projected to achieve impressive financial results, with an estimated $351-$379 million CAD in combined 2025 revenue. Furthermore, the integration is expected to yield a healthy adjusted EBITDA margin of 24%, serving a global customer base exceeding 700 entities. Covelya itself has demonstrated strong growth, with an estimated 2025 revenue range of $249-$275 million CAD and a compound annual growth rate (CAGR) of 24% from 2023 to 2025, underscoring the strategic value of this acquisition in a rapidly expanding market.

Kraken's leadership anticipates significant operational efficiencies, targeting approximately $10 million in cost synergies within the first 24 months post-acquisition. This integration will create a formidable force with an expanded workforce of roughly 1,200 employees, including a substantial contingent of 790 technical specialists. The combined entity will also boast an impressive over 450,000 square feet of global production capacity, positioning it to meet escalating demand.

The acquisition is slated for completion in the second quarter of 2026, pending customary regulatory approvals, including clearance from the TSX Venture Exchange and foreign direct investment authorities. Upon closing, the seller is expected to retain an approximate 4% stake in the outstanding common shares of the enlarged Kraken Robotics. This consolidation represents a significant development in the subsea technology landscape, potentially reshaping competitive dynamics and accelerating innovation in maritime defense and exploration.