Kraken announces closing of $430M acquisition of Covelya Group

Canadian marine technology company Kraken Robotics has announced the closing of its previously announced acquisition of Covelya Group Limited for approximately USD 430 million, subject to closing adjustments. 

The acquisition aligns with Kraken’s strategy to deliver value to customers through a portfolio of dual-use technologies and a culture of innovation, Kraken said in a press release. 

“This acquisition positions Kraken as a global provider of mission-critical, dual-use subsea intelligence solutions,” said Greg Reid, CEO of Kraken Robotics. 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.”

As part of its integration with Covelya Group and its subsidiary companies, Kraken is implementing a new organizational structure and strengthening its leadership team.

The new structure will consist of Kraken Group, which will focus on financial and organizational governance, and a clearly delineated Kraken Robotics operating business, whose business units will focus on operational excellence, strategic execution, and financial performance. These changes are designed to combine the strengths and talents of both organizations while creating a more efficient and scalable platform to support long-term growth, the press release said.