Kraken acquires Covelya Group to form subsea technology powerhouse
Kraken Robotics has finalized a CAD615 million agreement to acquire Covelya Group, bringing together Sonardyne, EIVA, Forcys, Wavefront Systems, Voyis and Chelsea Technologies under one umbrella. This move positions the combined entity as a dominant force in the rapidly evolving subsea technology sector. The deal merges Kraken’s expertise in synthetic aperture sonar and subsea batteries with Covelya’s advanced navigation, communication and imaging systems, creating a comprehensive solution provider for defence and commercial maritime markets.
The acquisition is more than a financial transaction – it’s a strategic alignment of complementary technologies and capabilities. Covelya Group, with its subsidiaries specializing in underwater navigation, positioning and sensor systems, brings a 50-year legacy of innovation and a global customer base. Kraken, known for its high-resolution sonar and robotic systems, gains immediate access to new markets, expanded technical expertise and a broader product portfolio.
Combined force to meet industry demand
The merged company is projected to achieve CAD365 million in revenue for 2025, with a 24% adjusted EBITDA margin – meaning nearly one in four dollars earned translates directly into operational earnings, underscoring both financial strength and efficiency. For clients across hydrographic surveying, offshore energy and naval defence, this translates into more robust, integrated solutions for autonomous underwater vehicles (AUVs), remotely operated vehicles (ROVs) and uncrewed surface vessels (USVs), backed by a financially resilient partner.
As defence budgets increase and commercial applications for underwater technology expand, the need for reliable, high-performance systems has never been greater. Kraken Robotics' enhanced offerings – now including Covelya’s navigation, dynamic positioning, and underwater communications – will enable more efficient data collection, infrastructure monitoring and maritime security operations.
Global footprint, local expertise
With 12 facilities across four continents and a workforce of 1,200, including nearly 800 engineers and technical specialists, the merged company is poised to accelerate innovation and respond to the growing demand for subsea solutions. “This acquisition allows us to deliver more integrated, mission-critical systems to our customers,” said Greg Reid, Kraken’s president and CEO. “We’re not just combining products; we’re combining decades of experience to solve the most complex challenges beneath the waves.”
For hydrographic professionals, marine engineers, and defence contractors, this merger signals a shift toward more cohesive, end-to-end solutions. The combined company’s ability to offer everything from subsea batteries to advanced sonar and navigation systems could set a new standard for the industry.
Kraken will maintain its current leadership team, now strengthened by the recent appointments of Bernard Mills as executive vice president of Defence and Terra Penrose as chief people officer, alongside key members of Covelya Group’s management. The company will operate through two dedicated business units – Defence and Commercial – to better serve its global markets.
Kraken’s headquarters will remain in Canada, with a robust international presence spanning Australia, Brazil, Denmark, Germany, Singapore, the UK and the USA – ensuring local expertise and global reach.
