Octopus Energy to Sell Stake in $10 Billion Software Arm Kraken Technologies
Octopus Energy plans to sell a 10-20% stake in its software arm, Kraken Technologies, which is valued between $9 billion and $10 billion. The sale is part of an imminent demerger of Kraken, which is expected to be announced soon and is being handled by Goldman Sachs. Potential buyers include D1 Capital Partners, Fidelity, and an arm of the Ontario Teachers’ Pension Plan.
Kraken Technologies serves as an operating system licensed to energy providers, water companies, and telecoms, offering integration of billing, renewable management, and devices to enable smarter grids. Its UK licensees include EON, EDF Energy, Severn Trent, and Cuckoo, while international clients include Origin Energy in Australia, Tokyo Gas, and Plentitude in France and Greece.
Currently, Kraken holds more than 70 million customer accounts globally and aims to reach 100 million by 2027. Amir Orad was appointed CEO of Kraken in July 2024. Earlier this year, Kraken also joined a Thames Water takeover consortium.
Octopus Energy, which is Britain's largest household gas and electricity supplier with over 7.5 million UK retail customers and 2.5 million outside the UK, reported in January that it holds about a 24% market share in the UK. The demerger of Kraken is intended to address perceived conflicts of interest between Kraken’s technology platform and Octopus Energy’s retail business, potentially alleviating customer concerns.
The valuation of Kraken implies that the entire Octopus Energy Group could be worth approximately £15 billion.
