Octopus Energy Plans Sale of Stake in $10 Billion Kraken Technologies as Part of Demerger
Octopus Energy is preparing to sell a 10–20% stake in its software arm, Kraken Technologies, to a syndicate that includes D1 Capital Partners, Fidelity, and an arm of the Ontario Teachers' Pension Plan. This sale is part of Kraken's planned demerger from Octopus Energy Group.
Kraken Technologies is valued between $9 billion and $10 billion, which implies a total valuation for Octopus Energy Group around £15 billion. Goldman Sachs is managing the demerger and stake-sale process, with the deal expected to be announced imminently.
Kraken operates an energy software platform licensing its operating system to various providers and utilities worldwide, integrating billing, renewable generation management, and smart-grid capabilities. It currently serves over 70 million customer accounts globally and aims to reach 100 million by 2027.
In the UK, Kraken's platform is licensed to companies including EON, EDF Energy, Severn Trent, and Cuckoo. International clients include Origin Energy in Australia, Tokyo Gas in Japan, and Plentitude in France and Greece.
Octopus Energy is Britain's largest household gas and electricity supplier, with more than 7.5 million UK retail customers and 2.5 million international customers, holding approximately 24% market share as of January.
Kraken's first chief executive, Amir Orad, was appointed in July last year. The demerger is expected to address potential conflicts of interest between the technology platform and the broader energy business. The plan to separate Kraken from Octopus Energy Group was first disclosed by Sky News in July.
