Kraken Robotics Inc. has completed its acquisition of Covelya Group Limited in a transaction valued at approximately $615 million, subject to closing adjustments.
The deal brings together two organizations active in subsea technology, strengthening Kraken’s position in mission-critical, dual-use underwater systems for defence, maritime surveillance, and subsea technology markets. Kraken said the acquisition supports its strategy to expand its portfolio of subsea intelligence solutions while increasing its technical capabilities and customer reach.
Covelya Group includes a number of marine and subsea technology businesses, such as Sonardyne, Voyis, Wavefront Systems, and Forcys. These companies add capabilities across underwater positioning, subsea imaging, sonar technology, and maritime defence applications, supporting the continued development and deployment of autonomous underwater systems and other subsea technologies.
According to Kraken, the acquisition is expected to deepen customer relationships in the fast-growing defence and maritime surveillance markets, expand the company’s total addressable market in subsea technology, and add strategic locations to support geographic growth. The company also highlighted the addition of experienced engineering teams and advanced facilities as key benefits of the transaction.
Greg Reid, CEO of Kraken Robotics, commented, “This acquisition positions Kraken as a global provider of mission-critical, dual-use subsea intelligence solutions. Since announcing the transaction, we have received positive feedback from customers who are looking forward to working with our combined engineering teams on integrated subsea technology solutions.
“We welcome the new employees to the team and look forward to the many benefits this combination can provide. 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.”
Following the closing, Kraken has updated its 2026 financial guidance to reflect the acquisition’s July 2, 2026 closing date and the inclusion of Covelya Group. Consolidated revenue for 2026 is now expected to reach between $290 million and $320 million.
The company also reported additional product orders secured by Kraken and Covelya since late May 2026, bringing announced 2026 orders to approximately $110 million for Kraken and $182 million for Covelya Group.
As part of the integration, Kraken is introducing a new structure made up of Kraken Group and a clearly defined Kraken Robotics operating business. Kraken Group will focus on financial and organizational governance, while the operating business will be responsible for operational excellence, strategic execution, and financial performance.
Bernard Mills, formerly Kraken’s executive vice president of defence, has been promoted to President of Kraken. The company said a dedicated integration team will begin aligning employees, systems, finance, sales, and operations as Kraken works to realize potential revenue and cost synergies from the acquisition.
Kraken also confirmed that, with the acquisition complete, it intends to apply to list its common shares on the Toronto Stock Exchange, subject to satisfying applicable listing requirements and receiving approval.
