Octopus Energy to separate and sell Kraken Technologies, potential increase in valuation

Octopus Energy is preparing to separate and partially sell its technology division, Kraken Technologies, with investment bankers set to manage the process. The demerger is expected within the next year, creating an independent entity with existing investors receiving shares. The potential transaction involves selling up to 20% of Kraken Technologies to external investors to evaluate its market value, estimated at around £10.25bn ($14bn). This move would position the entire Octopus Energy Group at approximately £15bn or more, a significant increase from previous valuations. Kraken Technologies provides a platform for energy system management, serving clients globally such as EON, EDF Energy, Tokyo Gas, and Origin Energy. Investment banks including Citi, JP Morgan, Goldman Sachs, and Morgan Stanley are competing for the demerger mandate. Kraken Technologies’ platform utilizes data analytics, cloud automation, and AI to enhance operational efficiency and customer service capabilities, currently supporting over 70 million customer accounts globally with plans to reach 100 million by 2027. The company recently expanded its operations in the US through a partnership with National Grid to serve customers in New York and Massachusetts.

Read more at Yahoo Finance: Octopus Energy plans Kraken Technologies demerger