Kraken Robotics Inc. has entered into a share purchase agreement to acquire Covelya Group Limited for total consideration of $615 million, excluding transaction costs and subject to adjustment.
Under the agreement, $480 million will be paid in cash and $135 million will be satisfied through the issuance of common shares of Kraken Robotics to the seller. The agreement was signed on March 3, 2026 between Kraken Robotics, its subsidiary Kraken Robotic Systems Inc., and Sonardyne Holdings Limited.
Covelya Group is an international provider of underwater technology solutions operating through several subsidiary companies, including Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd.
The company designs, manufactures, sells, and supports underwater technology used for navigation, communication, positioning, imaging, measuring, and monitoring in maritime applications. Its technologies are used with maritime uncrewed systems as well as some crewed surface vessels. Covelya Group is headquartered in the United Kingdom and employs nearly 750 people. The company operates 12 facilities across North America, South America, Europe, and the Asia-Pacific region and has more than 50 years of experience in underwater technology. It is expected to report revenue in 2025 of between $249 million and $275 million.
Kraken Robotics stated that the combined companies are expected to generate revenue of approximately $365 million in 2025 with a combined adjusted EBITDA margin of 24%. Following completion of the acquisition, the combined organization is expected to have approximately 1,200 employees and more than 450,000 square feet of production capacity worldwide, including around 790 engineers, scientists, and technical sales staff. The companies will also hold a combined portfolio of more than 110 issued and pending patents.
Strategic Rationale
Kraken Robotics stated that the acquisition will strengthen its position in dual-use subsea technology by combining complementary capabilities and expanding the company’s scale, facilities, and engineering expertise.
The combined organization will be able to deliver integrated mission-critical systems for underwater platforms, including power, navigation, communication, positioning, and imaging technologies used on platforms such as Remotely Operated Vehicles (ROVs), Autonomous Underwater Vehicles (AUVs), Remotely Operated Towed Vehicles (ROTVs), Uncrewed Surface Vessels (USVs), and stationary sensors.
The transaction is also expected to expand Kraken’s product offering and exposure to new segments of the subsea technology market. Covelya’s portfolio includes solutions for navigation, dynamic positioning, underwater communications, subsea data collection, intruder detection sonar, subsea integrity and production monitoring, forward-looking sonar, subsea infrastructure installation, and geohazard monitoring. The group also provides software and integrated systems that support remote and on-site operations with capabilities for automation, autonomy, and artificial intelligence.
Kraken stated the acquisition will broaden its geographic presence and customer base, with the combined companies expected to serve more than 700 customers worldwide across defence and commercial markets.
Greg Reid, President and CEO of Kraken Robotics, commented, “We have long admired Covelya Group and its operating businesses and are very pleased to join forces with its talented team. Strategically, this acquisition will provide a unique opportunity to combine two leading subsea technology providers with complementary products, operating in markets with barriers to entry and high growth potential. Additionally, some key customers of Covelya Group are also existing customers of Kraken, providing significant opportunities to create value by cross selling within our overall client base.”
Simon Partridge, Executive Chairman of Covelya Group, said the combined company will bring together a broad product portfolio and technological capabilities to support the development of underwater vehicles and subsea systems.
