St. John’s-based marine technology company Kraken Robotics is looking to position itself as a major supplier of dual-use subsea technology with the acquisition of United Kingdom-based Covelya Group.
“Kraken will become a more attractive partner to naval system integrators at a time when industry demand is growing rapidly.”
Greg Reid,
Kraken
Kraken announced on Tuesday evening that it agreed to acquire the conglomerate for $615 million. Kraken said that the acquisition will expand its product offering and total addressable market in subsea technology, particularly in the “fast-growing” defence industry.
“In supplying multiple products and services, Kraken will become a more attractive partner to naval system integrators at a time when industry demand is growing rapidly,” Kraken president and CEO, Greg Reid, said in a statement.
The acquisition is expected to close in the second quarter of 2026. Once that happens, Kraken said it will have over 450,000 square feet of production capacity and approximately 1,200 employees worldwide. Kraken will continue to be headquartered in Canada and led by the current management team, alongside key members of the Covelya Group management team.
Founded in 2008 and trading on the TSX Venture Exchange (TSXV) under the symbol $PNG, Kraken is one of Newfoundland’s most valuable technology companies. It produces underwater sensors, batteries, and robotics for the marine industry. Last year, Kraken was ranked the best-performing company on the TSX Venture 50.
Covelya Group was formed in 2020 by its largest operating company, the 55-year-old Sonardyne International. Covelya designs and manufactures underwater technology for maritime defence and commercial customers across the globe through its six subsidiaries, Sonardyne, EIVA A/S, Forcys, Wavefront Systems, Voyis Imaging, and Chelsea Technologies.
Covelya’s companies provide technology and software for navigation, communication, positioning, imaging, measuring, and monitoring for maritime uncrewed systems, as well as some crewed surface vessels, according to Kraken. It has nearly 750 employees operating in 12 facilities across North America, South America, Europe, and the Asia Pacific region.
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“Strategically, this acquisition will provide a unique opportunity to combine two leading subsea technology providers with complementary products, operating in markets with barriers to entry and high growth potential,” Reid said. Kraken said it will have two market-facing business units going forward: defence and commercial.
Kraken called Covelya a “high growth” and profitable company with “attractive margins.” When combined, Kraken and Covelya brought in between $351 million and $379 million in revenue in 2025, according to preliminary financial results.
The transaction will be paid for with $480 million in cash, funded by a credit facility and a bought deal public offering, with the remaining $135 million coming from Kraken shares issued to Covelya.
Feature image courtesy Kraken Robotics.