Shares of Kraken Robotics Inc. (NASDAQ:KRKNF) are trading lower Wednesday after the company announced the acquisition of a subsea technology company after the market closed on Tuesday.
- Kraken Robotics stock is taking a hit today. What’s weighing on KRKNF shares?
$615 Million Acquisition To Be Partially Financed Through Public Offering
Kraken Robotics will acquire Covelya Group Limited for $615 million. $480 million will be paid in cash and $135 million will be paid after Kraken issues and sells a number of common shares. The acquisition will be partially funded with a $350 million public offering of subscription receipts, which may be sparking some weakness on Wednesday.
“The combined company will be able to provide more integrated solutions of mission-critical systems for underwater platforms and subsea sensors/monitoring systems,” said Kraken Robotics CEO Greg Reid. “These key technology systems include Kraken’s subsea batteries and synthetic aperture sonar and Covelya Group’s subsea navigation, positioning, and communications offering.
The business combination is expected to provide Kraken’s with industry leading subsea technology, increased size and scale, long-standing customer relationships, experienced technical teams and a greater capability to provide integrated solutions.
Kraken Releases Preliminary 2025 Year-End Results and 2026 Guidance
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. 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 contributions from the acquisition.
KRKNF Shares Move Lower
KRKNF Price Action: Kraken shares are down 3.50%, trading at $6.62 at the time of publication on Wednesday, according to Benzinga Pro.
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