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Octopus Energy plans to decorate Technology Arm Kraken Technologies, creating standalone entities that can be valued for up to $10 billion.
According to those familiar with the issue, the UK-based energy supplier is set to separate from the business after growing rapidly over the past few years.
Octopus Energy was founded in 2015 to prove Kraken technology and is now the UK’s largest household energy supplier, and this year it has overtaken Centrica’s UK gas.
According to Sky News, which first reported the plan, investment banks are invited to pitch for Demarger that will take place in the next 12 months.
The new entities will be owned by current Octopus Energy shareholders, but new investors may also be sought for the smallest shares. According to people familiar with the issue, octopus energy can hold small stakes. Kraken could be valued at up to $10 billion, they added.
The technology platform is designed to make customer billing more efficient, develop new tariffs, and optimize the use of electric vehicles, solar panels and other technologies.
Leading by CEO Greg Jackson, Octopus uses the technology itself and is licensed to other energy and water companies around the world, including rivals such as Eon and EDF.
The boss hopes the company will provide a 100mn account by 2027. In May, it announced that it would be signed to provide accounts of more than 70mn after signing up National Grid’s US operations as the first large utility to adopt the platform.
The technology was key to Taco Energy’s appeal to investors, and was promoted to a $9 billion valuation in May 2024 when major shareholders such as Generation Investment Management and the Canada Pension Plan Investment Committee increased their shares. Galvanize Climate Solutions and Lightrock came with the same rating a month later.
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Veery Maxwell, co-head of innovation and expansion at Galvanize, told the Financial Times in January:
Octopus Energy is making Kraken more independent as Kraken tries to hamper concerns among potential customers about a potential conflict of interest.
This includes the appointment of Kraken CEO Amir Orad and the appointment of former BT CEO Gavin Patterson. Those familiar with the issue said that disrupting businesses would be a step further.
It could also encourage speculation about Kraken’s possible list. In January, Jackson said he was “open-minded” about the company’s future.
The octopus declined to comment.
