Octopus Energy Plans $14 Billion Spin-Off to Launch Kraken as Independent Tech Giant – EQ
In Short : UK-based Octopus Energy is considering a $14 billion demerger of its tech arm, Kraken Technologies, aiming to spin it off within a year. The move may include selling a 20% stake to external investors. Kraken, which manages over 70 million utility accounts globally, could operate independently, unlocking value and enabling broader partnerships beyond Octopus’s energy business.
In Detail : Octopus Energy is planning to spin off its technology arm, Kraken Technologies, in a potential demerger valued at around $14 billion. The company is in the early stages of organizing the separation and is expected to finalize the move within the next 12 months. Investment banks such as Citi, Goldman Sachs, JP Morgan, and Morgan Stanley are reportedly in talks to advise on the deal.
As part of the demerger plan, up to 20% of Kraken may be sold to outside investors. This stake sale would help establish Kraken’s standalone valuation and bring in strategic capital to support its global expansion. Octopus shareholders, including Origin Energy and Tokyo Gas, are expected to receive shares in the new independent company.
Kraken Technologies offers a cloud-based energy platform used by utility companies worldwide. It currently manages more than 70 million customer accounts and is targeting 100 million by 2027. The platform supports energy billing, AI integration, and renewable energy management for its partners.
Separating Kraken from Octopus Energy would allow both businesses to pursue their strategic goals more freely. Kraken would gain the flexibility to form partnerships across the utility sector without conflict-of-interest concerns, while Octopus could refocus on its core business of energy supply.
The demerger is also seen as a potential step toward a future public listing for Kraken Technologies. With growing demand for digital solutions in the energy industry, the move positions Kraken as a major player in the global energy-tech space.
If completed, the demerger would boost the combined valuation of Octopus and Kraken to over £15 billion. The plan highlights the rising value of clean tech platforms and the strategic shift toward digital and decentralized energy solutions.
