Kraken Robotics to Acquire Covelya Group for $615 Million

In a press release, Kraken Robotics announced it has entered into an agreement to acquire Covelya Group for $615 million. The acquisition will be financed through $480 million in cash and $135 million in Kraken common shares. A portion of the cash payment will come from a $350 million public offering of subscription receipts and a $150 million credit facility.

Covelya Group, based in the United Kingdom, provides underwater navigation, communication, and imaging technologies through subsidiaries such as Sonardyne International, EIVA, and Voyis Imaging. The company employs about 750 people across 12 facilities worldwide and is expected to generate between $249 million and $275 million in revenue in 2025.

Following the acquisition, Kraken will operate with approximately 1,200 employees and an expanded product portfolio serving defense and commercial customers. The combined entity is projected to report 2025 revenue between $351 million and $379 million, with an adjusted EBITDA margin of 24%. Kraken expects to achieve around $10 million in cost synergies within two years of closing.

The transaction is anticipated to close in the second quarter of 2026, pending regulatory and TSX Venture Exchange approvals. Kraken will continue to be headquartered in Canada and led by its existing management team, with Covelya’s leadership joining key roles within the company.