Core Viewpoint - Ovo is planning to sell a stake in its software arm Kaluza at a 'unicorn' valuation to strengthen its balance sheet amid regulatory challenges and financial pressures [1][7]. Group 1: Company Overview - Ovo is the fourth-largest residential gas and electricity supplier in Britain, serving nearly four million retail customers [1]. - The company was founded in 2009 by Stephen Fitzpatrick and has grown significantly, especially after acquiring the retail supply arm of SSE in 2020 [9]. - David Buttress is currently the CEO of Ovo, having previously held a position as Boris Johnson's cost-of-living tsar [10]. Group 2: Kaluza's Valuation and Ownership - Kaluza, an energy intelligence platform, is 80% owned by Ovo, with the remaining 20% owned by Australian energy company AGL, which valued Kaluza at $500 million (£395 million) last year [2][3]. - Industry sources suggest that Ovo may seek a valuation for Kaluza of over $1 billion, with some analysts estimating it could be as high as $2.5 billion based on annual recurring revenue (ARR) [3]. Group 3: Financial Strategy and Partnerships - Ovo is exploring options for Kaluza's stake sale as part of a broader strategy to enhance its financial position, including discussions for a potential £300 million investment [4][5]. - Kaluza recently entered a licensing partnership with French energy group Engie, indicating its growth strategy in the energy software sector [2]. Group 4: Regulatory Challenges - Ovo has faced challenges in meeting targets set by Ofgem, the industry regulator, which has prompted the company to take proactive measures to align with new capital rules [7]. - The company has experienced difficulties related to customer complaints about overcharging, impacting its relationship with Ofgem [9].

LONDON & PARIS--(BUSINESS WIRE)--In a wide-scale licensing arrangement, ENGIE – a global energy player serving 20 million consumer contracts worldwide – has chosen Kaluza's Energy Intelligence Platform to deploy cutting-edge digital technologies aimed at enhancing customer experience and accelerating the shift to smarter, cleaner energy. Kaluza was selected by ENGIE for this multi-year, multi-market agreement following a rigorous evaluation of technology providers. Kaluza's platform combines re. ...