Kraken Robotics has entered into an agreement to acquire the Covelya Group, a provider of underwater technology solutions operating through its subsidiary companies Sonardyne International, EIVA, Forcys, Wavefront Systems, Voyis Imaging and Chelsea Technologies.
Kraken will acquire Covelya 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 satisfied through the issue of common shares of the company.
“We have long admired Covelya Group and its operating businesses and are very pleased to join forces with its talented team,” commented 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. Additionally, some key customers of Covelya Group are also existing customers of Kraken, providing significant opportunities to create value by cross selling within our overall client base.”
“The combined company will be able to provide more integrated solutions of mission-critical systems for underwater platforms and subsea sensors/monitoring systems.
“These key technology systems include Kraken’s subsea batteries and synthetic aperture sonar and Covelya Group’s subsea navigation, positioning, and communications offering. In supplying multiple products and services, Kraken will become a more attractive partner to naval system integrators at a time when industry demand is growing rapidly."
