Octopus Energy Plans Stake Sale in $10 Billion Kraken Technologies Amid Demerger
Octopus Energy is preparing to sell a 10-20% stake in its software arm, Kraken Technologies, as part of a demerger process. Kraken is expected to be valued between $9 billion and $10 billion, implying a total group value around £15 billion.
The move aims to separate Kraken from Octopus Energy Group to address perceived conflicts of interest with Kraken’s customers. Kraken, which licensed its software operating system to energy providers, water companies, and telecoms, links billing, renewables management, and smart grids. Its UK users include EON, EDF Energy, Severn Trent, and Cuckoo; international clients include Origin Energy, Tokyo Gas, and Plentitude.
Kraken currently manages over 70 million customer accounts globally and targets 100 million by 2027, a goal described by Octopus CEO Greg Jackson as not “embarrassingly unambitious.”
Investors expected to participate in the stake sale include D1 Capital Partners, Fidelity, and an arm of the Ontario Teachers’ Pension Plan, with Goldman Sachs overseeing the demerger and sale. Kraken appointed its first CEO, Amir Orad, in July last year.
