Kraken Robotics Makes $615M Subsea Tech Play

The $615 million price tag for Covelya Group represents a 9.7x multiple on the company's projected 2025 adjusted EBITDA of approximately $63 million. Kraken is financing the deal with $480 million in cash, raised through a $150 million credit facility and a $350 million public offering, plus $135 million in Kraken shares. The acquisition is expected to be immediately accretive and create an entity with projected 2025 revenues between $351 million and $379 million. The deal is a strategic move to create a fully integrated provider of underwater systems. Kraken’s expertise in high-resolution synthetic aperture sonar and subsea batteries will be combined with Covelya's portfolio, which includes Sonardyne's world-leading acoustic positioning and communication systems, Voyis's underwater laser scanners, and Chelsea Technologies' environmental sensors. This integration is designed to capture a larger share of a subsea systems market projected to reach over $25 billion by 2031. A key growth driver is the booming Autonomous Underwater Vehicle (AUV) market, which is forecasted to grow at a CAGR of over 16%. Covelya subsidiary EIVA provides the software backbone for autonomous operations, while Forcys delivers integrated solutions for the rapidly expanding maritime defense sector. This positions the combined company to capitalize on increasing defense spending on unmanned naval systems. The acquisition provides significant cross-selling opportunities between Kraken's and Covelya's customer bases, which already have some overlap. Kraken is targeting $10 million in cost synergies within the first two years by optimizing supply chains, R&D, and facilities. The transaction also brings Covelya's specialized subsidiaries under one roof, each a strong player in its niche. Sonardyne is a major force in the underwater acoustic communication market, a sector expected to reach nearly $6 billion by 2032. Voyis is a key innovator in the underwater laser scanner market, which is projected to grow at a CAGR of around 6.8%. This deal reflects a broader trend of consolidation and technological integration in the maritime tech industry. As offshore energy, defense, and oceanographic research demand more sophisticated and autonomous solutions, companies that can offer a complete technology stack are positioned for significant growth. The acquisition aims to make Kraken a one-stop shop for subsea robotics and data solutions.