Insider Brief
- Kraken Robotics agreed to acquire subsea technology provider Covelya Group for about $615 million in a deal that expands its capabilities in underwater robotics, defense systems and maritime surveillance.
- The acquisition combines Kraken’s sonar, imaging and subsea battery technologies with Covelya’s navigation, positioning and communications systems used on autonomous underwater vehicles and maritime platforms.
- The companies are expected to generate about $365 million in combined 2025 revenue, with the deal broadening Kraken’s global footprint and strengthening its position in defense, offshore energy and subsea infrastructure monitoring markets.
Kraken Robotics has agreed to acquire subsea technology provider Covelya Group for about $615 million, a move that expands the Canadian company’s reach in underwater robotics, defense systems and maritime surveillance.
According to Kraken, the deal combines Kraken’s subsea imaging, sonar and battery systems with Covelya’s navigation, positioning and communications technologies used on underwater vehicles and maritime platforms. Kraken said the acquisition positions the company as a broader supplier of mission-critical subsea systems for both defense and commercial markets.
Under the agreement, Kraken will pay $480 million in cash and $135 million in shares. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals.
Covelya operates several well-known underwater technology businesses including Sonardyne, EIVA, Forcys, Wavefront Systems, Voyis Imaging and Chelsea Technologies. The group develops navigation, communication, imaging and monitoring technologies used on autonomous underwater vehicles, remotely operated systems and maritime surveillance platforms.
Kraken said the acquisition strengthens its position as demand grows for subsea robotics and sensor systems tied to naval defense, offshore energy and underwater infrastructure monitoring. Many of those systems rely on integrated technologies such as power, navigation, positioning, imaging and communications — areas the combined company will now cover more broadly.
The companies together are expected to generate roughly $365 million in revenue in 2025 with adjusted EBITDA margins around 24%, according to Kraken. Covelya alone is projected to report between $249 million and $275 million in revenue this year.
Kraken said the deal also expands its geographic footprint, adding operations across North America, Europe, Asia-Pacific and South America. After the acquisition closes, the combined company will employ roughly 1,200 people and operate more than 450,000 square feet of production facilities worldwide.
The company plans to finance the acquisition through a mix of debt and equity, including a new $150 million credit facility and a public offering expected to raise about $350 million.
