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According to reports in the press, UK energy firm Octopus Energy is considering hiving off and selling a minority stake in its technology arm, Kraken Technologies, within the next year. It’s expected that existing Octopus Energy investors would be given shares in a newly-independent Kraken business, with around a fifth of shares also being sold to external shareholders to help validate the valuation.
The move would value Kraken at around £10bn – with that portion of the business then worth around two-thirds of the £15bn value of the Octopus group overall.
Although part of Octopus, Kraken licenses its SaaS-based energy generation and supply management platform to other players in the market. EDF’s UK retail business engaged Kraken and Accenture to help strengthen and modernise its digital core in June last year, for example; and E.ON, Tokyo Gas, and Australia’s Origin Energy are also listed amongst the company’s clients – with Kraken’s platform now servicing over 70m customer accounts worldwide.
If it comes to pass, the demerger of Kraken Technologies will create a formidable force in energy tech – a market with much growth potential. According to TechMarketView’s recently published UK Software & IT Services (SITS) Market Trends & Forecasts 2025 report, Energy was the fastest growing sector for UK SITS spend in 2024 (up 6.5% to £3.5bn). It also ranked #3 in the UK (and worldwide) in terms of sustainability activity across the year too – with TechMarketView’s Sustainability Technology Activity Index logging 21.6% of the year’s global sustainability activities, and 16.8% of the UK’s, as pertaining to Energy sector related use cases.
TechMarketView Foundation Service members can download UK SITS Market Trends & Forecasts 2025 and its companion report UK SITS Supplier Rankings 2025 now. Together they provide an unparalleled multi-dimensional view of the UK SITS market as it looks today and how it’s forecast to evolve in the coming years. Our Sustainability Technology Activity Index 2025 reports (providing essential competitive intelligence and adoption insight into sustainability tech in the UK and across the globe) are also now available, to SustainabilityViews clients.
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Posted by: Craig Wentworth at 09:19
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demerger