Kraken Robotics Secures Major Funding for Landmark Acquisition

Kraken Robotics secures $402.5M to finance its $615M acquisition of Covelya Group, aiming to become a global leader in underwater technology.

Kraken Robotics has successfully completed a significant capital raise, securing the funds necessary for its largest acquisition to date. The underwater technology specialist will receive gross proceeds of $402.5 million, providing the financial cornerstone for its planned purchase of the Covelya Group—a move set to substantially elevate the company's scale and market presence.

Market Confidence and Strategic Growth

The market has responded positively to Kraken's expansion strategy well in advance of this financing milestone. Over the past twelve months, the company's share price has surged by more than 300%. Currently trading at €6.13, the stock remains within striking distance of its recently achieved 52-week high. This substantial appreciation underscores strong investor confidence in the firm's strategic direction.

The financing was executed through the issuance of approximately 47.4 million special warrants, priced at $8.50 each. This newly raised capital is earmarked specifically to cover the majority of the cash component required for the Covelya transaction. The total acquisition is valued at $615 million, with $480 million to be paid in cash. The remaining balance will be settled through the issuance of new Kraken shares to the seller.

Transforming into an Industry Leader

The integration of Covelya, which includes notable subsidiaries such as Sonardyne International and EIVA, promises to dramatically broaden Kraken Robotics' maritime portfolio. The strategic objective is to establish the combined entity as a premier provider of dual-use technologies catering to both defense and commercial markets. Operational capacity is expected to see a major boost, with global production facilities expanding to over 450,000 square feet.

Financially, the merger is projected to create considerable momentum. Management anticipates enhanced scalability and diversification driven by synergies between the organizations. Specific targets have been outlined for the upcoming fiscal year:

• Projected combined 2025 revenue: $365 million
• Target adjusted EBITDA margin: 24%
• Combined workforce: approximately 1,200 employees (including 790 technical staff)
• Covelya's compound annual growth rate (CAGR) since 2023: 24%

Path Forward and Regulatory Process

The finalization of the acquisition is scheduled for the second quarter of 2026. Completion remains subject to customary regulatory approvals and the consent of the TSX Venture Exchange. Upon closing, Kraken Robotics will undergo a fundamental transformation, evolving from a specialized niche player into a globally significant force in the underwater robotics industry.