Kraken Robotics Acquires Covelya Group

Kraken Robotics Inc. has announced that it has entered into an agreement to acquire Covelya Group Limited, a leading international provider of mission-critical underwater technology solutions operating through its subsidiary companies: Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd.

The Company will acquire Covelya Group for total consideration of $615 million, excluding transaction costs and subject to adjustment, of which $480 million will be paid in cash and $135 million will be satisfied through the issue of common shares of the Company to the seller pursuant to a share purchase agreement dated March 3, 2026, between Kraken, its subsidiary Kraken Robotic Systems Inc. and Sonardyne Holdings Limited.

Acquisition Rationale

• Positions Kraken as a major supplier of dual-use subsea technology.
• Combined revenue of $365 million in 2025 with a Combined Adjusted EBITDA margin of 24%.
• Acquiring a high growth (24% revenue CAGR since 2023), profitable company with attractive margins.
• Allows for deeper customer relationships in the fast-growing defense and maritime surveillance market.
• Expands product offering and Kraken’s total addressable market in subsea technology.
• Adds strategic locations for geographic expansion and improves business diversification.
• Bolsters technical capabilities with an experienced engineering team and highly advanced facilities.
• Accretive across key financial metrics with opportunity for revenue and cost synergies.
• Maintains balance sheet strength with flexibility to fund future growth.
• Capitalizes on supportive trends in both defense and non-defense sectors, including energy.

Covelya Group

Covelya Group designs, manufactures, sells and supports high-performance underwater technology for maritime defense and commercial customers globally. Through its subsidiary companies, Covelya Group provides a suite of technology and software centered around providing reliable navigation, communication, positioning, imaging, measuring, and monitoring for maritime uncrewed systems, as well as some crewed surface vessels. In addition to being a sub-systems provider, Covelya Group also offers stand-alone capabilities, notably deployed sensors and remotely operated towed vehicles (ROTVs). They are expected to report revenue in 2025 of between $249 million and $275 million. Covelya Group is headquartered in the United Kingdom with nearly 750 employees, operating 12 facilities across North America, South America, Europe and Asia Pacific.