Octopus Energy plans Kraken Technologies demerger
Octopus Energy is reportedly on the verge of appointing investment bankers to manage the separation and partial sale of its technology division, Kraken Technologies.
This move by the British renewable energy group involves a demerger expected within the next twelve months, reportedSky News, citing sources with knowledge of the situation.
Go deeper with GlobalData
The plan will result in Kraken Technologies becoming an independent entity, with existing Octopus Energy investors receiving shares in the newly autonomous business.
According to the report, the potential transaction includes the sale of up to 20% of the technology business to external investors. This is intended to support the evaluation of its market value.
Current assessments estimate that Kraken Technologies could be valued at around £10.25bn ($14bn). Such a valuation would position the entire Octopus Energy Group, including its retail supply operations, at approximately £15bn or more.
The anticipated valuation reflects a substantial increase from previous assessments when Octopus Energy secured new backing from Galvanize Climate Solutions and Lightrock. Shortly before that, Generation Investment Management and the Canada Pension Plan Investment Board increased their stakes, valuing the company at £7.2bn.
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataKraken Technologies provides a platform that orchestrates various components of the energy system such as customer billing and the management of renewable energy resources.
The platform is licensed not only to Octopus Energy competitors such as EON and EDF Energy in the UK but also extends its reach internationally. Clients include Japan’s Tokyo Gas and Australia’s Origin Energy, among others.
Investment banks including Citi, JP Morgan, Goldman Sachs, and Morgan Stanley have been tapped to pitch for the demerger mandate.
Kraken Technologies’ platform leverages advanced data analytics, cloud automation, and AI to enhance operational efficiency and customer service capabilities. As of now, it is said to support more than 70 million customer accounts globally and aims to expand this number to 100 million by 2027.
Recently, Kraken Technologies expanded its operations in the US through a partnership with National Grid, enabling it to serve customers in New York and Massachusetts.
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
Content Original Link:
" target="_blank">
