Kraken Robotics Inc. has completed its acquisition of Covelya Group Limited for approximately $615 million, bringing together complementary subsea technologies, engineering capabilities, and customer relationships across the defence, maritime surveillance, and ocean technology sectors.
The acquisition strengthens Kraken’s position in mission-critical, dual-use subsea intelligence solutions and expands the company’s product offering across the subsea technology market. Covelya Group brings together a number of marine and subsea technology businesses, such as Sonardyne, Voyis, Wavefront Systems, and Forcys, adding capabilities across underwater positioning, subsea imaging, sonar, and maritime defence applications.
It also adds strategic locations for geographic expansion, enhances business diversification, and brings additional technical capabilities through Covelya Group’s experienced engineering team and advanced facilities.
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.”
Kraken stated that the acquisition aligns with its strategy to deliver value through a portfolio of dual-use technologies and a culture of innovation. Strategic benefits outlined by the company include deeper customer relationships in fast-growing defence and maritime surveillance markets, a broader total addressable market in subsea technology, and improved geographic reach.
Following the closing, Kraken updated its 2026 financial guidance to reflect the acquisition’s July 2, 2026 closing date and the inclusion of Covelya Group, with consolidated revenue now expected to reach between $290 million and $320 million.
Kraken also reported additional product orders secured by both businesses since late May 2026, pointing to continued commercial momentum following the acquisition.
As part of the integration, Kraken is introducing a new organizational 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 focus on operational excellence, strategic execution, and financial performance.
Bernard Mills, formerly Kraken’s executive vice president of defence, has been promoted to President of Kraken to support the integration and growth of the combined business.
The acquisition was completed for approximately $615 million, subject to closing adjustments. Kraken also intends to apply to list its common shares on the Toronto Stock Exchange, subject to satisfying applicable listing requirements and receiving approval.
