Kraken Robotics (PNG) was up 12% on word that Iran was laying mines in the Strait of Hormuz, which makes its recent $615M acquisition of Covelya Group even more topical - as it meaningfully expands the company’s subsea capabilities…

… and broadens its geographic mix.

Beyond diversification, it’s a scale deal - enabling Kraken to go after larger, more complex contracts while retaining financial flexibility…

… with pro-forma net leverage sitting at 0.8x, given the deal was funded primarily with equity. With PNG sitting downstream of higher defence spend, much of which is earmarked for new equipment…

… its stock will likely remain a viable currency for future M&A.