Kraken Robotics Acquires Covelya for $615M to Expand Subsea Capabilities

Canadian marine technology company Kraken Robotics announced on March 3, 2026, that it has entered into an agreement to acquire Covelya Group Limited for $615 million, a strategic move designed to significantly expand its global subsea technology capabilities.

The acquisition will be funded with $480 million in cash and $135 million in Kraken common shares, as detailed in the company's official announcement published on March 3, 2026. Covelya Group operates through subsidiaries including Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd., providing mission-critical underwater technology solutions globally.

According to Kraken's announcement, the combined entity will have a 2025 revenue of $365 million with a 24% Combined Adjusted EBITDA margin, representing a high-growth (24% revenue CAGR since 2023) and profitable business with attractive margins. Covelya Group, headquartered in the United Kingdom with nearly 750 employees across 12 facilities in North America, South America, Europe, and Asia Pacific, reported expected 2025 revenue between $249 million and $275 million.

Greg Reid, President and CEO of Kraken, stated: "We have long admired Covelya Group and its operating businesses and are very pleased to join forces with its talented team. 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." The deal is expected to close in the second quarter of 2026.

The acquisition positions Kraken as a major supplier of dual-use subsea technology, expanding its product offering and total addressable market. Covelya's technology suite centers around reliable navigation, communication, positioning, imaging, measuring, and monitoring for maritime uncrewed systems and some crewed surface vessels. This complements Kraken's existing capabilities in synthetic aperture sonar systems, underwater batteries, and autonomous robotic platforms used in seabed mapping, infrastructure inspection, and naval operations.

Industry analysts note the strategic significance of this deal in the context of growing global demand for subsea technology. As highlighted by MassRobotics, "Demand for advanced subsea technology has increased in recent years as governments and commercial operators invest in underwater infrastructure monitoring, maritime security, and offshore energy operations." The combined company will employ approximately 1,200 people and hold over 110 patents, creating significant technological barriers for competitors in this high-entry-barrier market.

With the acquisition, Kraken aims to provide more integrated solutions for mission-critical underwater systems, including navigation, communication, and sensor technologies. The deal represents a strategic move to capitalize on converging defense and commercial applications in subsea technology, where technologies originally designed for naval operations are increasingly used in offshore energy exploration and environmental monitoring.

Artūras Malašauskas is an AI Systems Integrator with 20+ years of production-grade web engineering experience. He has designed, shipped, and scaled enterprise Python/PHP systems for logistics, SaaS, and public-sector clients. For the past year, he has focused exclusively on AI integrations: deploying open-source LLMs, building generative media pipelines (image, audio, video), and engineering multi-agent workflows for real production environments. His standard: reproducibility, security, cost-efficient inference—no vaporware. He documents and evaluates emerging AI tooling, separating verified capabilities from marketing noise. Technical editor at: muza-ai.eu, ai-verslas.lt, ai-naujinos.lt Connect on LinkedIn