St. John’s-based Kraken Robotics Inc. has increased the amount of money it is raising to support its acquisition of U.K.-based Covelya Group Limited to $402.5 million.

Earlier this month, the oceantech company announced the acquisition of Covelya for $615 million, and said it planned to sell $350 million of stock on the TSX Venture exchange to help finance the deal. Kraken followed up with a second statement saying its underwriters have exercised their over-allotment options, meaning there was more demand for the shares than expected. This move increases the capital raise by $52.5 million.

The purchase price includes $480 million in cash and $135 million in Kraken common shares issued to the seller, Sonardyne Holdings. Kraken expects to close the deal by the end of June.

The acquisition combines two providers of subsea technology serving defence and commercial maritime markets, with the goal of offering a greater range of mission-critical products in more geographic markets.

Covelya Group operates several underwater technology companies, including Sonardyne International, EIVA A/S, Forcys, Wavefront Systems, Voyis Imaging Inc. and Chelsea Technologies. The group designs and manufactures systems used for underwater navigation, communication, positioning, imaging and monitoring for uncrewed maritime platforms and surface vessels.

Covelya, which employs nearly 750 people and operates 12 facilities across North America, South America, Europe and the Asia-Pacific region, is expected to report 2025 revenue of between $249 million and $275 million. The business has recorded revenue growth of about 24 percent annually since 2023.