- Octopus Energy is planning a demerger of its tech arm, Kraken Technologies, valued at up to $14 billion.
- Major global banks are being approached to manage the transaction.
- The move could reshape the intersection of clean energy and digital infrastructure.
Octopus Energy, the UK’s largest electricity provider, is preparing to separate Kraken Technologies, its in-house energy tech platform, in a move that could value the division at up to $14 billion.
The proposed separation will likely involve Octopus shareholders receiving stakes in the newly formed tech entity, along with a minority stake—potentially 20%—being sold to outside investors.
Kraken Breaks Free: Octopus Energy Eyes Massive Tech Demerger Worth $14 Billion
Kraken Technologies has gained prominence for its ability to manage customer service, billing, and smart energy data through a single integrated platform. Its flexibility and scalability have attracted clients across Europe, the U.S., Japan, and Australia, contributing significantly to Octopus Energy’s international growth.
This potential demerger would position Kraken Technologies as a standalone tech powerhouse, distinct from its parent company’s retail and supply business. It reflects a growing trend among energy firms to commercialize their proprietary software platforms and seek new revenue streams through licensing models.
Octopus Energy’s rise has been rapid—it became the UK’s largest electricity supplier in just eight years, surpassing British Gas in early 2024. This growth has been fueled in part by Kraken’s automation and efficiency capabilities, which have helped the company cut operational costs while improving customer satisfaction.
While no timeline has been confirmed, the involvement of major financial institutions suggests the process may accelerate in the coming months. A successful spin-off could attract global investors looking to capitalize on the convergence of clean energy and technology, a space Kraken is already helping to define.
The proposed Kraken Technologies demerger signals Octopus Energy’s intent to redefine itself not just as a utility, but as a global tech enabler for the green energy transition.
“The best way to predict the future is to invent it.” — Alan Kay
