The British energy supplier Octopus Energy is currently examining a strategic spin-off of its technology subsidiary, Kraken Technologies, in a deal estimated at around £10 billion (approximately $14 billion). This major financial move, revealed by Sky News, could significantly alter the group’s capital structure, positioning Kraken as an independent entity on the market. Existing Octopus Energy investors are expected to receive shares in the newly separated company. In this context, Octopus has already begun preliminary discussions with several investment banks to manage the upcoming transaction.
A defining valuation for Kraken
The project also involves the potential sale of a minority stake in Kraken Technologies, possibly up to 20%. This transaction would help confirm and validate Kraken’s high valuation, estimated at approximately £10 billion. According to sources cited by Sky News, this valuation implies that the entire Octopus Energy group, including both its technology and energy supply businesses, would be valued at least £15 billion (approximately $20.6 billion). At this stage, Octopus Energy has declined to officially comment on this information, while Kraken Technologies was unreachable for comment.
A strategic technological asset
Kraken Technologies provides an advanced software platform designed for efficient and automated management of energy distribution operations. This technology has been adopted by several major international energy companies, thereby enhancing its attractiveness to financial markets. The envisaged independence could provide Kraken with greater operational agility and support its international expansion, especially in highly deregulated energy markets. However, the selection process for the banks to manage the transaction is still ongoing, suggesting that the spin-off could be finalized within the next twelve months.
A favorable context for complex financial transactions
This announcement occurs in a context characterized by increased activity in corporate restructuring and spin-offs within the energy sector. Several major European and international players are seeking to isolate their technological assets to enhance investor attractiveness. For Octopus Energy, such an operation could represent a decisive step in capitalizing on the current enthusiasm for technology solutions in the energy sector, thus reinforcing its strategic position in the market. The coming months will be crucial to confirm market interest in Kraken Technologies and the overall strategy of the British group.
