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General Oceans Enters Purchase Agreement with MRV Systems, LLC

General Oceans has announced that it has entered into a purchase agreement with MRV Systems, LLC.

The addition of MRV to General Oceans expands the Company’s capabilities in long-duration, autonomous data collection and strengthens its position as a global leader in underwater technology. MRV Systems has around 22 employees and has offices in San Diego, Wood Dale (HQ) and Seattle, increasing General Oceans’ US footprint. The Transaction will further enhance General Oceans’ growth strategy and enable collaboration between MRV and its existing brands, realising the benefits of the Group’s global capabilities. It marks yet another acquisition in accordance with General Oceans’ growth strategy and expands the recent track record of successful acquisitions.

About the MRV acquisition, Atle Lohrmann, President of General Oceans, said:

“MRV is a great fit for General Oceans, and we’re excited to have them join our growing Group. General Oceans has a proud tradition as a provider of advanced instrumentation and sensors to the scientific community making MRV a natural fit. With access to the Group’s extensive sales network and engineering experience, we believe we can develop MRV’s global presence quickly and explore new revenue opportunities as we move forward.”

Founded in 2010 as a spin-off from the Scripps Institution of Oceanography, MRV has become a trusted supplier of advanced profiling vehicles for ocean research, climate monitoring, and maritime domain awareness. It currently contributes meaningfully to the U.S. commitment of profiling floats to the Argo program. MRV is well established with strong US presence and serves customers such as NOAA, NASA, the U.S. Naval Oceanographic Office.

About joining General Oceans, Shawn Vasquez, President & CEO of MRV said:

“I am excited for the future of MRV as part of General Oceans. Collaborating across the Group will allow MRV to accelerate delivery of innovative solutions to meet our customers’ ocean technology needs. MRV is delighted to join a Group with a shared passion for continuously growing our knowledge of the ocean through ongoing research, development and innovation in the ocean technology space.”

Regarding the MRV sale, Fred Maas, outgoing Executive Chairman of MRV, stated:

"We are thrilled to participate in the announcement of General Ocean's acquisition of MRV Systems. From a tiny lab in San Diego with only the Scripps and Woods Hole Institutes of Oceanography as its customers, MRV grew to 3 offices in 3 states and over 30 customers. Most importantly, MRV has participated in a vast expanse of our knowledge of the world's oceans. We look forward to watching its continued success."

For more information on MRV, visit https://www.mrvsys.com/.

by Mariana Csanyi

Fugro to conduct geotechnical campaign for South America’s first licensed offshore wind project

Petrobras has selected Fugro to deliver a geotechnical site investigation for the Rio de Janeiro Offshore Wind Pilot Project, the first offshore wind development in South America to advance under a formal environmental licensing process. The 18 MW pilot marks an essential step in energy diversification as countries in the region begin to establish regulated pathways for the responsible development of offshore wind.

Working within a nearshore study area off São João da Barra, Fugro will acquire the Geo‑data needed to inform safe and efficient design. Activities include soil sampling, in situ testing and laboratory analysis across four coastal and shallow‑water locations, along with onshore investigations to support cable landfall and routing. Field operations and analysis will begin in April and continue through Q3 2026, with final reporting scheduled for 2027.

The project stands to benefit from Fugro’s work on early‑stage offshore wind developments in emerging markets worldwide, ranging from initial pilot studies to full site characterisation. For this effort, Fugro’s Brazil‑based teams will lead delivery, pairing nearshore operations from the Rio das Ostras hub with laboratory analysis at the Pinhais facility. This combination of local insight and global experience will help ensure consistent, decision‑ready data for Petrobras.

“As South America moves forward with its offshore wind ambitions, early Geo‑data is one of the most important tools for reducing uncertainty and setting projects up for long-term success,” said Céline Gerson, President and Group Director for Fugro in the Americas. “By partnering with Petrobras at this early stage, we’re helping establish the technical foundation needed to progress offshore wind responsibly and expand future energy options in Brazil and across the wider region.”

by Mariana Csanyi

UK Royal Navy Awards Teledyne Contract for Autonomous Underwater Vehicles and Floats

Teledyne Marine, part of Technologies Incorporated (NYSE:TDY), is pleased to announce that it has been awarded a contract by the UK Ministry of Defence (MOD) in support of the Royal Navy’s Future Maritime Data Gathering (FMDG) - Persistent Oceanographic Data Collect, strengthening the Royal Navy’s oceanographic and environmental data collection capabilities.

Under this contract, Teledyne will supply numerous autonomous ocean observing systems, including Sentinel and Slocum gliders, APEX floats, and associated services, enabling the Royal Navy to expand its fleet of advanced unmanned technologies to collect high-quality oceanographic data in support of operational planning, maritime safety, and defence activities, directly supporting Atlantic Bastion.

Under the FMDG program, Teledyne’s systems will deliver long-endurance data collection from complex and remote maritime environments, providing the Royal Navy with actionable and reliable environmental intelligence. The program builds on the Royal Navy’s use of Teledyne Slocum gliders since 2015 and reinforces the growing role of unmanned systems in Royal Navy and NATO naval operations. According to the Royal Navy’s Direct award justification “Teledyne remains the only supplier able to guarantee seamless interoperability, security compliance, and mission readiness into the Current RN Glider Fleet.”

“This award reflects the Royal Navy’s continued confidence in Teledyne’s autonomous underwater vehicles and ocean observing technologies, and our established partnership in delivering proven, mission-ready solutions,” said George Bobb, President and CEO of Teledyne. “We are proud to support the Royal Navy’s Future Maritime Data Gathering program and to contribute capabilities that deliver high-quality ocean data to enable critical defense and maritime missions.”   

“This investment in autonomous ocean sensing strengthens the Royal Navy’s ability to understand and operate in an increasingly contested North Atlantic, supporting Atlantic Bastion. As we take this forward under the First Sea Lord’s Hybrid Navy agenda, this capability will be delivered directly to frontline Information Warfare Meteorological and Oceanographic (IW METOC) Operators. Persistent data from systems such as these enhances our understanding of the Underwater Battlespace, enabling Tactical Exploitation of the Environment and delivering the operational and information advantage Commanders need,” said Commander Butcher, Royal Navy, Capability Sponsor.

Since 2015, Teledyne has supported the Royal Navy’s oceanographic and environmental monitoring requirements through Slocum gliders, APEX floats and Gavia autonomous systems designed to operate reliably in demanding operational conditions. Teledyne’s unmanned systems are widely used by naval, commercial, and scientific organizations worldwide for ocean observation and environmental data collection.

Proven Performance

Teledyne Marine is a leading provider of unmanned underwater vehicles and ocean observing systems. Teledyne has delivered more than 12,000 APEX floats and 1,290 Slocum gliders, including over 600 systems in service with NATO naval users. Gavia AUV systems have been purchased by 18 navies worldwide, and Teledyne systems are operational with numerous NATO and AUKUS navies, including the Royal Navy.

UK Presence

Teledyne employs approximately 2,700 people across 18 main sites in the UK and is committed to supporting current and future UK defense priorities through proven technology, local expertise, and long-term partnerships.

by Mariana Csanyi

XOCEAN’s X-30 achieves ROUV certification under the UK Workboat Code Edition 3

The certification marks one of the first of its kind for an operational platform.

Lloyd’s Register (LR) has certified XOCEAN’s X-30 Remotely Operated Uncrewed Vessel (ROUV) to the UK Maritime and Coastguard Agency’s Workboat Code Edition 3 (WBC3), including the Annex 2 requirements for ROUVs.

The certification makes X-30 one of the first uncrewed vessels to achieve full compliance with the updated WBC3 framework, with the Annex 2 ROUV requirements introduced in late 2023 to regulate the design and operation of ROUVs in UK waters.

Developed and operated by XOCEAN, based in Ireland, X-30 is designed for uncrewed ocean survey operations, collecting high-resolution data to support offshore energy, environmental and seabed mapping projects.

Certification to this standard has proven challenging across the industry, with only a small number of vessels successfully completing the process to date. The achievement follows LR’s authorisation by the MCA in 2025 as the first Certifying Authority for Annex 2 ROUV certification, and builds on its certification of the ACUA Ocean Pioneer, the first vessel to achieve compliance with WBC3 Annex 2.

The certification of X-30 builds further momentum in the industry and is expected to inform the process for future XOCEAN vessels, including its sister vessels currently progressing through build.

Jordan McRuvie, Specialist – Unmanned Marine Systems at Lloyd’s Register, said: “Certification of X-30 is a major achievement for XOCEAN and one that we’re proud to have supported. Alongside recent steps forward in the industry, this further demonstrates that certification of small, complex ROUVs under WBC3 is achievable when developers, certifying authorities and the MCA work in close partnership. This project shows how technical innovation can align with regulatory assurance for the safe introduction of uncrewed systems in real-world operations, and we look forward to continuing to support current and future partners with their certification journeys.”

Shep Smith, CTO, XOCEAN said: “Securing WBC3 certification for X-30 is an important step forward for our fleet and for the wider uncrewed vessel industry. The collaboration with Lloyd’s Register has shown that robust, safety-led certification is possible, paving the way for wider adoption of uncrewed technology in support of sustainable offshore operations.”

by Mariana Csanyi

Japan’s Deep Ocean Reveals Dozens of New Species from Landmark 2025 Nippon Foundation–Nekton Ocean Census – JAMSTEC Expedition

Japan has led a major international effort to explore and document new life in the deep ocean. Following the Nippon Foundation–Nekton Ocean Census Expedition in June 2025, partnering with the Japan Agency for Marine-Earth Science and Technology (JAMSTEC), scientists have confirmed the discovery of 38 new species and identified 28 further potential new species across two of Japan’s most understudied deep-sea regions: the Nankai Trough and the Shichiyo Seamount Chain. 

The June 2025 expedition, conducted aboard JAMSTEC’s research vessel Yokosuka and supported by the famous Shinkai 6500 manned submersible collected >528 specimens, all catalogued, imaged, and preserved for future morphological and molecular analyses. In October 2025, taxonomists from Japan and around the world convened at JAMSTEC Headquarters (Yokosuka, Japan) for a dedicated Species Discovery Workshop, confirming the status of these new and potentially new species and coordinating next steps for the publication of scientific papers. 

“The discoveries made in the Nankai Trough and the Shichiyo Seamount Chain remind us how little of our ocean has truly been explored. By supporting missions like this, The Nippon Foundation is helping to open a new frontier of knowledge for Japan and for humanity. Each new species discovery is a step toward understanding, valuing, and ultimately safeguarding our shared ocean.” — Mitsuyuki Unno, Executive Director of The Nippon Foundation 

Among these discoveries are two breakthrough studies: a comprehensive survey in the journal Ecosphere, led by JAMSTEC researcher Dr Chong Chen, revealing a five-fold increase in biodiversity at Nankai Trough cold seeps, and research in The Zoological Journal of the Linnean Society led by Dr. Naoto Jimi, which demonstrates the remarkable evolutionary history of symbiotic sponge-dwelling worms, which have evolved to live ‘in a glass castle’. 

“This is about Japan leading global ocean science,” said Dr Akinori Yabuki, Principal Investigator. “Deep-sea discovery requires long-term commitment and world-class technology, and Japan is one of the few nations that are uniquely positioned to drive this work.”

Nankai Trough: Landmark Survey of Cold Seeps Reveals Five-Fold Increase in Deep-Sea Biodiversity 

A major new study has revealed a five-fold increase in known biodiversity in the Nankai Trough, one of Japan’s most geologically active deep-sea regions located 500–600 km southwest of Tokyo. The expedition was led by JAMSTEC scientist Dr Chong Chen with a team of expedition scientists. Up from just 14 previously known animal species inhabiting cold seeps, it documented 80 animal species, making this the most comprehensive biological survey of the region ever undertaken. 

The Nankai Trough paper is published on Ecosphere Journal and can be read free of charge here: https://doi.org/10.1002/ecs2.70451 

80 seep-associated animal species, including: 

• 33 molluscs – including snails, clams, and a glisten-worm 
• 23 annelids - including lugworms 
• 11 arthropods - crustaceans such as crabs, shrimp and amphipods 
• 5 nemerteans - ribbon worms 
• 4 echinoderms - sea stars, brittlestars, and sea cucumbers 
• 3 cnidarians - Zooanthid, anemone and hydroid 
• 1 bryozoan - Bryozoa 

The results include numerous range extensions, new national records, and previously unknown species associations, revealing the Nankai Trough has an exceptionally rich biodiversity. 

Shichiyo Seamount Chain: Japan’s ‘Offshore Mountains’ Yield New Species and Rare Sponge Symbiosis 

Southeast of Tokyo and 500–700 km offshore, the Shichiyo Seamount Chain rises from the northwestern Pacific as a series of submerged volcanic peaks. Prior to the 2025 expedition, many of these remote seamounts have remained largely unexplored from a biological perspective. During the landmark Ocean Census: JAMSTEC–Shinkai expedition, researchers aboard the Shinkai 6500 conducted the biological dives in this region, revealing rich ecosystems, including new coral gardens and seafloor areas densely covered with sponges. 

Life in a glass castle 

During the dive, a large glass sponge observed at Shichiyo Seamount was found to play an important biological role for certain polychaete worms. This study formally describes and names two new species of polychaete worms—Dalhousiella yabukii and Leocratides

watanabeae—which were found living symbiotically within the same glass sponge. Glass sponges construct an intricate, mesh-like skeleton out of silica, the same material used to make glass. Living within this structure is akin to residing in a "glass castle," as the rigid, translucent framework provides a protected cavity for symbiotic animals. 

Although these worms share a single "glass castle," phylogenetic analysis suggests their symbiotic lifecycle evolved independently. A paper detailing these findings has been published in the Zoological Journal of the Linnean Society and can be accessed at the following link: https://doi.org/10.1093/zoolinnean/zlag028 

Beyond these symbiotic worms, the Shichiyo seamount dives also revealed: 

• Five new species of squat lobsters, including deep-sea species belonging to the genus Munidopsis. 
• Newly observed octocorals, nemerteans, amphipods, gastropods, and kinorhynchs.
• Several species previously thought to be rare or absent from Japanese waters. 

Together, these findings position the Shichiyo Seamount Chain as a region of special interest for Japanese marine science, with rich biodiversity hidden across terrain that had remained unvisited by researchers until now. 

by Mariana Csanyi

Kongsberg Discovery and Fugro consolidate partnership with Main Supplier agreement

Kongsberg Discovery and Fugro have signed a new framework agreement that strengthens a decades-long technology partnership between the two companies. The contract, confirmed at Oceanology International in London, positions Kongsberg Discovery as a key supplier of advanced hydroacoustic and positioning technologies across Fugro’s global fleet, including the company’s expanding portfolio of uncrewed surface vessels (USVs).

Integrated approach

Fugro is widely recognised as the world’s leading Geo-data specialist, delivering insights that support energy production, the energy transition, large-scale infrastructure development and climate resilience. Its operations span offshore and onshore environments worldwide, with increasing emphasis on sustainable survey solutions and remote operations.

The new agreement reinforces Kongsberg Discovery’s position as a preferred technology partner for Fugro, providing continued access to the company’s high-end solutions – such as the EM2042 multibeam echosounder and Seapath motion and GNSS positioning systems, which have been selected for integration across Fugro’s new generation of autonomous survey platforms. Working together, the assets and technology will deliver high-quality, precise hydrospatial data and optimally efficient, safe and sustainable remote operations.

Shared commitment

Auden Berg, EVP, Kongsberg Discovery, says the agreement reflects a shared commitment to advancing subsea technology while maintaining the highest standards of data quality.

“Fugro has been a valued partner for many decades and together we have helped shape the evolution of modern hydrospatial surveying,” Berg comments. “This new framework agreement takes that collaboration to the next level. By combining Fugro’s operational expertise with Kongsberg Discovery’s advanced sensor and positioning technologies, we can continue delivering the reliable, high-quality data that Fugro’s customers depend on for informed decision making and understanding of complex marine environments.”

Empowering autonomy

Although the agreement is wide-ranging in reach, Fugro’s decision to expand its USV fleet, as announced at Oceanology International, is a natural focal point. The Dutch multinational, which employs approximately 10,000 people in 52 countries, has built an advanced network of Remote Operations Centres (ROCs) to enable USV tasks, helping dramatically reduce emissions (by up 95%), with enhanced safety and 24/7 operational efficiency. Kongsberg Discovery technologies are central to these developments, supporting the precise navigation, seabed mapping and underwater positioning required for autonomous success.

In addition to multibeam echosounders and Seapath INS, Fugro will continue to utilise a broader portfolio of Kongsberg Discovery systems including HiPAP underwater acoustic positioning and communication technology. Together, these solutions provide the high-accuracy situational awareness needed for complex offshore survey projects.

Unlocking value

Mark Heine, Fugro CEO, says the strengthened partnership reflects the company’s confidence in Kongsberg Discovery’s technology and expertise.

Heine comments: “Our focus is on delivering high‑quality Geo‑data and clear insights that help customers reduce risk and make well‑informed decisions throughout the life of their projects. Kongsberg Discovery’s systems play a key role in supporting our global survey operations, enabling us to operate efficiently while maintaining consistent and reliable outcomes in increasingly complex marine environments. This framework agreement supports our shared ambition to advance more efficient and sustainable survey operations. We are pleased to continue working closely with Kongsberg Discovery as we build on this long‑standing collaboration for the benefit of our customers worldwide.”

To discover more please see https://www.kongsberg.com/discovery/

by Mariana Csanyi

Teledyne and M Subs Announce Strategic Collaboration

Teledyne Marine, a global leader in maritime unmanned underwater vehicles and marine technologies, and M Subs, a UK-based innovator in marine unmanned systems and associated autonomy, are pleased to announce the signing of a Memorandum of Understanding (MOU) to establish a strategic collaboration. ​

This partnership aims to leverage the complementary expertise of both organizations to develop and execute business opportunities related to the UK Royal Navy and other international naval programs. ​The collaboration will focus on integrating advanced technologies, including vehicle platforms, autonomy systems, sonars, acoustic communications, cameras, lighting, and subsea connectors, to deliver cutting-edge solutions for maritime operations.

Efforts are already underway on cooperation with Teledyne SeaBat multibeam sonars successfully integrated and demonstrated on Zero USV platforms at REPMUS 2025. In addition, work has commenced on the deployment of Slocum gliders and Osprey class AUVs from Zero USV systems with demonstrations in the UK and Iceland planned in Q1 and Q2 of 2026.

Key highlights of the partnership include:

• Support for Royal Navy Programs: The collaboration will focus on advancing projects with the UK Royal Navy including possible joint cooperation for Atlantic Bastion and MHC Block 2 while leveraging M Subs and Teledyne’s significant UK presence and capability. ​
• Joint Business Development: Teledyne and M Subs will work together to identify and pursue mutually beneficial opportunities globally. ​
• Shared Expertise: Both parties will combine their technological capabilities to enhance unmanned systems and autonomy solutions for maritime applications. ​

Brian Maguire, Teledyne Marine Chief Operating Officer and Vehicles General Manager, stated, “This collaboration represents a significant step forward in advancing maritime technologies. ​ By combining our expertise, we aim to deliver innovative solutions that meet the evolving needs of the UK and international markets.”

Brett Phaneuf, Director of M Subs, added, “It has been a pleasure to work with Teledyne to integrate the myriad sensors and devices they bring to bear on the marine and defense space; they have proved nimble and forward leaning in our work together, necessary qualities from flagship companies partnered with small SMEs for us to be successful in the future when serving the nation…it’s also been a great deal of fun!” ​

The partnership between Teledyne and M Subs is set to drive innovation and deliver impactful and operationally relevant solutions with high technology readiness levels for defense and commercial applications.

Proven Performance: Teledyne Marine is a leading provider of unmanned underwater vehicles (UUVs) with two main production facilities located in North Falmouth, MA and Kopavogur, Iceland along with a network of international service centers. As of January 2026, Teledyne has delivered over 12,000 APEX floats, approximately 1,275 Slocum gliders (with over 600 to NATO naval users), and Gavia AUV systems have been purchased by 18 navies. Teledyne unmanned systems are operational with numerous NATO and AUKUS navies including the Royal Navy.

UK Presence: Teledyne currently has over 2,700 employees in the UK at 18 main sites and is committed to supporting current and future UK defense priorities with proven technology and local expertise.

by Mariana Csanyi

HydroSurv delivers REAV-25 to strengthen Skanska Norway’s uncrewed survey operations

HydroSurv has announced the sale and delivery of its latest REAV-25 Uncrewed Surface Vessel (USV) to Skanska Norway AS, marking a significant milestone in Skanska’s expansion of uncrewed survey capability for infrastructure projects across the country.

Skanska is a leading civil engineering and construction company with a substantial portfolio of works spanning inland waterways, ports and harbours, and coastal environments. Supporting the successful delivery of these projects is Skanska’s in-house survey and inspection unit, where the REAV-25 will play a key role in strengthening inland hydrographic survey operations.

The USV will be primarily deployed to deliver high-resolution bathymetric surveys using a Norbit iWBMS multibeam echo sounder, supporting the design, construction and long-term maintenance of infrastructure located over, under and alongside the water. The acquisition reflects Skanska’s growing adoption of uncrewed technologies to improve data availability, operational efficiency and safety, while reducing the environmental footprint of survey activities.

Designed for zero-emission day operations, the REAV-25 is a sheltered-water, multipurpose USV capable of supporting a wide range of hydrographic and environmental data collection campaigns. The vessel is equipped with twin 2.5 kW rim-driven thrusters, minimising the risk of entanglement or damage during shallow-water operations, and is powered by a 6-kWh lithium battery system enabling full-day endurance. As a commercial-grade platform, the REAV-25 features HydroSurv’s Virtual Watchkeeper Vessel Control System (VCS) alongside the Dynautics Spectre autopilot.

David Hull, Founder and CEO of HydroSurv, said:

“We’re extremely proud to have been selected by Skanska to support the delivery of this new REAV-25 USV for survey operations in Norway. The portability and flexibility of the platform allows rapid mobilisation and the repeatable collection of high-quality survey data, aligning well with Skanska’s operational and project delivery requirements.

Stuart Duncan, Team Lead (Seabed Mapping & Inspection) at Skanska Survey Norway AS, said:

“We contacted several companies and looked at various USV solutions in this now crowded workspace, but HydroSurv really shone as a company that Skanska felt it could do business with. We have been impressed throughout this process and look very much forward to receiving and working with our REAV-25. The compact vehicle is ideal for our current area of growth, and moving personnel from the field to the office will make us far more competitive to our clients.”

The USV, named Saga, will complete trials in the UK in March 2026 and is expected to enter operational service with Skanska in Norway in early spring.

by Mariana Csanyi

Kraken Robotics Announces Signing of Strategic Acquisition to Expand Global Maritime Capabilities

Kraken Robotics Inc. (“Kraken” or the “Company”) (TSX-V: PNG), is pleased to announce that it has entered into an agreement to acquire Covelya Group Limited (“Covelya Group”), a leading international provider of mission-critical underwater technology solutions operating through its subsidiary companies: Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd.

The Company will acquire Covelya Group for 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 (“Common Shares”, and such Common Shares the “Consideration Shares”) to the seller pursuant to a share purchase agreement dated March 3, 2026 (the “Share Purchase Agreement”), between Kraken, its subsidiary Kraken Robotic Systems Inc. and Sonardyne Holdings Limited (the “Acquisition”).

ACQUISITION RATIONALE

• Positions Kraken as a major supplier of dual-use subsea technology.
• Combined revenue⁽¹⁾ of $365 million in 2025 with a Combined Adjusted EBITDA margin⁽²⁾ of 24%.
• Acquiring a high growth (24% revenue CAGR⁽³⁾ since 2023), profitable company with attractive margins.
• Allows for deeper customer relationships in the fast-growing defence and maritime surveillance market.
• Expands product offering and Kraken’s total addressable market in subsea technology.
• Adds strategic locations for geographic expansion and improves business diversification.
• Bolsters technical capabilities with an experienced engineering team and highly advanced facilities.
• Accretive across key financial metrics with opportunity for revenue and cost synergies.
• Maintains balance sheet strength with flexibility to fund future growth.
• Capitalizes on supportive trends in both defence and non-defence sectors, including energy.

COVELYA GROUP BACKGROUND

Covelya Group designs, manufactures, sells and supports high-performance underwater technology for maritime defence and commercial customers globally. Through its subsidiary companies, Covelya Group provides a sophisticated suite of technology and software centered around providing reliable navigation, communication, positioning, imaging, measuring, and monitoring for maritime uncrewed systems, as well as some crewed surface vessels. In addition to being a sub-systems provider, Covelya Group also offers stand-alone capabilities, notably deployed sensors and remotely operated towed vehicles (ROTVs). They are a large, highly profitable, high-growth organization that is expected to report revenue in 2025 of between $249 million and $275 million. Covelya Group is headquartered in the United Kingdom with nearly 750 employees, operating 12 facilities across North America, South America, Europe and Asia Pacific. With a track record of more than 50 years in underwater technology, Covelya Group has a strong history of innovation, quality manufacturing, and customer service in addition to extensive, trusted relationships across a diversified client base.

MANAGEMENT COMMENTS

“We have long admired Covelya Group and its operating businesses and are very pleased to join forces with its talented team,” said 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,” said Reid. “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. This accretive acquisition also enhances our technical capabilities, expands our total addressable market, and improves overall business diversification. We look forward to this combination and the potential to create value for shareholders, customers, employees, and other stakeholders.”

Simon Partridge, Executive Chairman of Covelya, said “We have mutually admired Kraken’s technology alongside its management team and believe this transaction is extremely beneficial to both companies. For Covelya Group, we will be able to leverage Kraken’s experience in the rapidly growing defence and maritime surveillance market while also enhancing our product and service-based offerings. The combined company will have a broad product portfolio and a stable customer base, with in-house technological capabilities required to enable the rapid growth expected for underwater vehicles. As part of a larger and well-capitalized enterprise, we will have a greater ability to re-invest in developing new technologies in addition to addressing the larger, more complex needs of our customers. We are extremely excited about today’s announcement and the opportunity to accelerate the new company’s growth trajectory moving forward.”

STRATEGIC RATIONALE

Creates a Major Supplier for Dual-Use Subsea Technology: This strategic combination advances Kraken’s strategy to deliver market-leading value to customers globally by providing the Company with industry leading subsea technology, increased size and scale, long-standing customer relationships, experienced technical teams and a greater capability to provide integrated solutions. With highly advanced facilities, alongside global manufacturing and sales capabilities, the Company will be well-positioned to continue to drive innovation.

Deeper Customer Relationships in the Fast-Growing Defence and Maritime Surveillance Market: Autonomous platforms within the defence industry currently include ROTVs, remotely operated vehicles (ROVs), autonomous underwater vehicles (AUVs), uncrewed surface vessels (USVs) and stationary sensors, all of which depend on power, navigation, communication, positioning, and imaging sensors. As a result of the Acquisition, Kraken will now be able to provide a more comprehensive and robust technology offering, including each of these mission-critical solutions, across a wider range of platforms. These complementary products, which are currently embedded within a broad group of key defence customers, will allow Kraken to become a more attractive partner to naval system integrators while also earning a greater share of the overall content sold per platform. This combination is timely as defence budgets are increasing globally, and the adoption of autonomous systems as force multipliers in naval military applications continues to accelerate. The increasing trend towards distributed and networked systems is also expected to increase demand for positioning, navigation, and communication solutions.

Expands Product Offering and Kraken’s Total Addressable Market within Subsea Technology: Covelya Group’s technologies provide Kraken greater exposure to new segments of the subsea technology market and enhanced opportunities for revenue growth in both products and services. Kraken will now be able to provide solutions for various autonomous underwater platforms and crewed vessels. Such incremental technology solutions for Kraken includes those that provide navigation, dynamic positioning, underwater communications, subsea data collection, intruder detection sonar, subsea integrity and production monitoring, forward-looking sonars, subsea infrastructure installation, and geohazard monitoring. Covelya Group also provides Kraken with software and integrated system solutions that enable remote and onsite operations and enhanced data collection with features for automation, autonomy and artificial intelligence, built upon over 50 years of demonstrated experience in subsea operations. In addition to the growing demand within the defence industry, the Company’s combined solutions have numerous applications in various commercial end markets.

Adds Strategic Locations for Geographic Expansion and Improves Business Diversification: Kraken will become a more diversified business in terms of its end markets, product offering, customer base and geographic exposure, by way of this Acquisition. With more than 700 customers on a combined basis, Covelya Group is expected to provide Kraken with additional momentum and growth opportunities with defence customers while also bolstering the Company’s presence and cash flow stream within the commercial market. This broader customer base is also beneficial for feedback to accelerate new product development cycles. Geographically, Kraken and Covelya Group can leverage their respective strengths across different regions, allowing for stronger sales and marketing capabilities for future growth.

Bolsters Technical Capabilities with an Experienced Engineering Team and Access to Highly Advanced Facilities: Both Kraken and Covelya Group share a common culture centered around innovation and technical excellence as evidenced by a combined portfolio of over 110 patents (issued and pending). Over its history, Covelya Group has invested heavily in manufacturing, assembly, calibration, and testing facilities. This Acquisition provides Kraken with important in-house technological capabilities, access to additional research and development for new product development, and a team of engineers with a lengthy track record around innovation. Kraken expects to leverage this expertise across the organization. At closing, the Company will have over 450,000 square feet of production capacity located in key markets globally, and approximately 1,200 employees, including 790 technical staff, comprised of engineers, scientists and technical sales.

ACCRETION AND FINANCIAL METRICS

The Acquisition is immediately accretive and is expected to generate low-to-mid double-digit EPS accretion in 2027, after including the full impact of expected cost synergies. The Acquisition is also expected to be accretive across other key financial metrics including revenue, EBITDA and cash flow per share.

Covelya Group is expected to generate revenue in 2025 of between $249 million to $275 million and Covelya Adjusted EBITDA⁽⁴⁾ of between $60 million to $67 million in 2025, representing a CAGR⁽⁵⁾ of 24% and 41% respectively since 2023. On a combined basis, Kraken and Covelya Group’s estimated revenue for 2025 is expected to be between $351 million to $379 million with a Combined Adjusted EBITDA Margin of 24%. These estimated results are based on preliminary unaudited financial statements and are subject to adjustment.

The Company is targeting approximately $10 million of cost synergies within the first 24 months through expected efficiencies in a shared supply chain, facilities, optimization of research and development efforts, integration of technology systems, and administrative optimization. Additional revenue synergies, such as cross-selling opportunities, have not been included in the expected accretion or synergy assumptions.

At closing, Kraken will maintain a strong balance sheet and financial flexibility to fund future growth opportunities with a Combined Net Leverage⁽⁶⁾ ratio of approximately 0.8 times. The Company expects this ratio to improve over the near-to-medium term through a combination of growth and debt repayments.

CERTAIN PRELIMINARY 2025 YEAR-END RESULTS AND 2026 GUIDANCE

On a preliminary and unaudited basis, Kraken’s financial results for fiscal 2025 are expected to show consolidated revenue in the range of $102 million to $104 million and Adjusted EBITDA of $24 million to $26 million. These annual results, which are the highest in the Company’s history, were driven by record results in Kraken’s SeaPower batteries and Synthetic Aperture Sonar products, as well as strong results in the subsea services division. This growth, however, was partially offset by the decline in sonar-related revenue in the current year due to the timing of KATFISH projects and the acquisition component of the Canadian Navy RMDS system integration project nearing completion.

For 2026, Kraken expects revenue to be between $165 million and $175 million and Adjusted EBITDA to be between $40 million to $50 million, excluding any contribution from the Acquisition. The Company’s outlook for 2026 is driven by existing purchase orders for SeaPower batteries, expected purchase orders for sonar products, and continued growth in the commercial services business, including a full year contribution from 3D at Depth Inc. which was acquired in 2025. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year.

The Company plans to release updated 2026 guidance for the combined company upon closing of the Acquisition, which is expected to occur in the second quarter of 2026. Closing of the Acquisition is conditional upon the satisfaction of customary conditions such as the approval of the TSX Venture Exchange (the “TSXV”), and regulatory approvals.

MANAGEMENT STRUCTURE

Kraken will continue to be led by the current management team, including the recent additions of Bernard Mills as EVP Defence and Terra Penrose as Chief People Officer, alongside key members of the Covelya Group management team. Moving forward, Kraken will have two market-facing business units being Defence and Commercial.

The Company will continue to be headquartered in Canada, with operations across Australia, Brazil, Canada, Denmark, Germany, Singapore, the U.K. and the U.S.

ACQUISITION FINANCING AND DETAILS

Under the Share Purchase Agreement, the Company will acquire all of the issued and outstanding shares of Covelya Group through its subsidiary Kraken Robotic Systems Inc. for total consideration of $615 million, excluding transaction costs and subject to customary purchase price adjustments, of which $480 million will be paid in cash, and $135 million will be satisfied through the issue of Common Shares to the seller.

The Company intends to fund the cash portion of the Acquisition and related expenses through a committed, secured, non-revolving term credit facility in the amount of $150 million (the “New Credit Facility”), and the net proceeds of a bought deal public offering of subscription receipts (“Subscription Receipts”) for gross proceeds of approximately $350 million (the “Offering”), as further detailed below.

The New Credit Facility will have a five-year term, and will be provided under an amendment to the Company’s existing credit facilities. The drawdown of the New Credit Facility is subject to certain customary conditions for secured acquisition financings of this nature. The Company’s current $35 million revolving credit facility, previously set to expire in April 2027, will also be amended with a five-year term from the date of the New Credit Facility.

The Company anticipates that the completion of the Acquisition will occur in the second quarter of 2026. Completion of the Acquisition is subject to certain conditions, including, among other things, receipt of all required regulatory approvals, including the approval of the TSXV, receipt of applicable approvals or non-objections under foreign direct investment and merger control regulations, other consents and regulatory approvals and other customary closing conditions for a transaction of this nature. The Transaction has been approved by the Board of Directors of the Company, and has received all required approvals from the seller and its shareholders.

The seller is expected to own approximately 4% of the issued and outstanding Common Shares on a pro-forma basis after completion of the Acquisition and the exchange of the Subscription Receipts issued pursuant to the Offering, assuming no exercise of the Over-Allotment Option (as defined below). The Consideration Shares will be subject to a lock-up agreement with one-third released at 12, 18, and 24 months from the completion date of the Acquisition. The seller will not participate in the Offering. The Acquisition is arm’s length and no finder’s fees will be paid.

PUBLIC OFFERING OF SUBSCRIPTION RECEIPTS

In connection with the Acquisition, Kraken has entered into an agreement with a syndicate of underwriters led by Scotiabank and Desjardins Capital Markets (collectively, the “Lead Underwriters”, and collectively the “Underwriters”), under which the Underwriters have agreed to purchase, on a bought deal basis 41,177,000 Subscription Receipts at a price of $8.50 per Subscription Receipt (the “Offering Price”) for aggregate gross proceeds of approximately $350 million (the “Offering“). The Company intends to use the net proceeds of the Offering to partially fund the cash purchase price of the Acquisition, as further described below.

The Company has also granted the Underwriters an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part, for a period of 30 days following the date of the closing of the Offering, to purchase up to an additional number of Subscription Receipts (or in certain conditions, Common Shares) equal to 15% of the number of Subscription Receipts sold pursuant to the Offering, at the Offering Price and on the same terms and conditions as the Offering, to cover over-allotments, if any.

Each Subscription Receipt will entitle the holder thereof, without payment of any additional consideration or further action on the part of the holder, to receive one Common Share upon the satisfaction or waiver of certain release conditions (including the satisfaction of all conditions precedent to the completion of the Acquisition, other than the payment of the purchase price and the satisfaction conditions precedent that by their nature are to be satisfied at completion), subject to adjustment in accordance with the terms of a subscription receipt agreement to be entered into upon closing of the Offering (the “Subscription Receipt Agreement“).

The gross proceeds from the Offering (including from any exercise of the Over-Allotment Option prior to the completion of the Acquisition) less 50% of the Underwriting Commission (as defined below) and the Underwriters’ expenses will be held in escrow pending the satisfaction or waiver of the release conditions. If the Acquisition is completed on or prior to 5:00 p.m. (Toronto time) on December 31, 2026 (the “Deadline”), the escrowed funds will be released to the Company and each Subscription Receipt will be exchanged for Common Shares. If the Acquisition is not completed prior to the Deadline, the holders of Subscriptions Receipts will receive a cash payment equal to the Offering Price of the Subscription Receipts plus their pro rata share of any interest actually earned on the escrowed funds during the term of the escrow, less applicable withholding taxes. The Company will pay the Underwriters a cash commission equal to 4.0% of the gross proceeds of the Offering (the “Underwriting Commission”), of which 50% will be paid upon closing of the Offering and 50% will be paid on upon the closing of the Acquisition.

Closing of the Offering is expected to occur on or about March 12, 2026. The Offering is subject to customary regulatory approvals, including approval of the TSXV.

The Subscription Receipts will be offered in all provinces and territories of Canada pursuant to a prospectus supplement (the “Prospectus Supplement”) to the short form base shelf prospectus of the Company dated August 7, 2025 (the “Base Shelf Prospectus”), and other jurisdictions outside of Canada as may be agreed between the Company and the Underwriters. Access to the Prospectus Supplement, the corresponding Base Shelf Prospectus and any amendment to such documents is provided in accordance with securities legislation relating to procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendment.

The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within two business days from the date hereof, through SEDAR+ at www.sedarplus.ca. An electronic or paper copy of the shelf prospectus supplement, the base shelf prospectus and any amendment to the documents may be obtained, without charge, from: Scotiabank by mail at 40 Temperance Street, 6th Floor, Toronto, Ontario M5H 0B4, attn: Equity Capital Markets, by email at [email protected] or by telephone at (416) 863-7704. Additionally, copies of these documents may be obtained upon request in Canada from Desjardins Capital Markets at 25 York St., 10th Floor, Toronto, ON M5J 2V5, Attention: Equity Capital Markets or by email at [email protected] by providing Desjardins with an email address or address, as applicable. The Base Shelf Prospectus and Prospectus Supplement contain important, detailed information about the Company and the proposed Offering. Prospective investors should read the Base Shelf Prospectus and Prospectus Supplement (when filed) before making an investment decision.

The securities being offered pursuant to the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or the securities laws of any state of the United States, and may not be offered, sold or delivered, directly or indirectly, in the United States, unless exemptions from the registration requirements of the U.S. Securities Act and any applicable U.S. state securities laws are available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, nor shall there be any sale of the securities in any jurisdiction, in which such offer, solicitation or sale would be unlawful. “United States” and “U.S. person” are as defined in Regulation S under the U.S. Securities Act.

ADVISORS

Scotiabank is acting as exclusive financial advisor to Kraken and has provided a fairness opinion to the Kraken Board of Directors that, as of the date of such opinion, and based upon the assumptions, limitations and qualifications set forth therein, the consideration payable pursuant to the Share Purchase Agreement is fair, from a financial point of view, to Kraken.

Scotiabank and Desjardins Capital Markets are acting as Lead Bookrunners for the Company’s public offering of Subscription Receipts. The Bank of Nova Scotia is acting as administrative agent for the New Credit Facility.

Gowling WLG is acting as legal advisor to Kraken. Goodmans LLP is acting as legal advisor to the Underwriters.

Piper Sandler is acting as exclusive financial advisor to Covelya Group. Osborne Clarke is acting as legal advisor to Covelya Group.

CONFERENCE CALL DETAILS

Kraken management will host a conference call today, March 3, 2026, starting at 4:30 p.m. ET to discuss the announced Acquisition. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or 1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call. This call will not include a question and answer session.

Webcast Details: https://event.choruscall.com/mediaframe/webcast.html?webcastid=6ve0PCLE

Shareholders and investors can find a presentation on Kraken’s website, further highlighting details of the Acquisition.

by Mariana Csanyi