Kraken Robotics Closes $615M Covelya Acquisition, Boosts Defence Tech Ambitions
Event summary
- Kraken Robotics completed its $615M acquisition of Covelya Group on July 2, 2026.
- The deal expands Kraken's subsea intelligence portfolio and defence market reach.
- Bernard Mills promoted to President; Nat Spencer departing as COO by late July.
- Updated 2026 guidance projects $290M-$320M revenue (previously $165M-$175M).
- $10M in cost synergies expected within 24 months post-acquisition.
The big picture
Kraken's acquisition positions it as a consolidated player in dual-use subsea intelligence, aligning with growing defence budgets and autonomous underwater system investments. The $615M deal significantly expands its addressable market while adding strategic locations and technical capabilities. With updated 2026 guidance projecting near-doubling of revenue, the integration's success will determine whether Kraken can sustain this growth momentum.
What we're watching
- Defense Budget Growth
- How global defence spending increases will impact Kraken's revenue trajectory.
- Integration Execution
- Whether Kraken can successfully merge Covelya's engineering teams and facilities within 24 months.
- TSX Listing Timing
- The pace at which Kraken secures Toronto Stock Exchange listing approval by year-end 2026.