Britain's Octopus Energy to spin out Kraken at $8.65 billion valuation

Core Viewpoint - Octopus Energy is spinning off its technology arm, Kraken, as an independent company valued at $8.65 billion following a funding round led by D1 Capital Partners [1] Group 1: Investment and Funding - New and existing investors will purchase approximately $1 billion of equity in Kraken, with Octopus Capital also injecting an additional $320 million into Octopus Energy [2] - Investors in this funding round include Ontario Teachers' Pension Plan, Fidelity International, and Durable Capital Partners [2] Group 2: Demerger and Future Plans - The investment facilitates Kraken's formal demerger from Octopus Energy, which will retain a 13.7% stake in Kraken [3] - The demerger may pave the way for a potential IPO of Kraken within two years, which could lead to an eventual flotation of Octopus Energy [3] Group 3: Kraken's Operations and Revenue - Kraken licenses its AI-powered operating system to utilities globally and is contracted to serve over 70 million accounts [4] - In September, Kraken reported contracted annual revenue exceeding $500 million [4] Group 4: Additional Investments - Australia's Origin Energy will invest about $140 million in Kraken's fundraising and will hold a 22.7% interest in the platform post-transaction [4] - Origin Energy has agreed to waive exclusivity for Kraken's services in Australia in exchange for an additional 1.5% equity interest [5]