• The company said that $480 million will be paid in cash and $135 million will be through the issue of common shares.
• Kraken Robotics intends to fund the cash portion of the acquisition and related expenses through a committed, secured, non-revolving term credit facility in the amount of $150 million.
• For 2026, Kraken Robotics said it expects revenue to be between $165 million and $175 million.

Kraken Robotics on Tuesday announced that it has entered into an agreement to acquire Covelya Group Limited in bid to expand its subsea technology. 

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The company said the deal will position Kraken (KRKNF) as a major supplier of dual-use subsea technology. 

The acquisition is immediately accretive and is expected to generate low-to-mid double-digit earnings per share accretion in 2027, after including the full impact of expected cost synergies. The deal is also expected to be accretive across other key financial metrics including revenue, core profit, and cash flow per share.

“We have long admired Covelya Group and its operating businesses and are very pleased to join forces with its talented team,” said Greg Reid, President and CEO of Kraken. “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.”

Deal Details

The company will acquire Covelya Group for a 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 through the issue of common shares, it said. 

 The company intends to fund the cash portion of the acquisition and related expenses through a committed, secured, non-revolving term credit facility in the amount of $150 million. 

The deal adds 12 facilities across North America, South America, Europe, and Asia Pacific for Kraken Robotics. 

Prelim Results

On a preliminary and unaudited basis, Kraken Robotics for fiscal year 2025 is expected to show consolidated revenue in the range of $102 million to $104 million, and adjusted core profit of $24 million to $26 million.

For 2026, Kraken Robotics said it expects revenue to be between $165 million and $175 million. The company’s outlook for 2026 is driven by existing purchase orders for SeaPower batteries, expected purchase orders for sonar products, and continued growth in the commercial services business.

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Retail sentiment around KRKNF trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

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