(Reuters) -Octopus Energy said on Thursday it would spin its technology arm Kraken Technologies off and named Tim Wan as the newly separated company’s chief financial officer, as Britain largest electricity supplier focuses on its core operations. Kraken, which provides energy software technology to energy majors including EDF, National Grid US and Tokyo Gas, has […]
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UK’s Octopus Energy to spin off technology arm Kraken
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(Reuters) -Octopus Energy said on Thursday it would spin its technology arm Kraken Technologies off and named Tim Wan as the newly separated company’s chief financial officer, as Britain largest electricity supplier focuses on its core operations.
Kraken, which provides energy software technology to energy majors including EDF, National Grid US and Tokyo Gas, has hit $500 million in committed annual revenue through licensing deals.
The separation will give Kraken independence to invest and expand as needed, and help reassure Kraken’s clients about any potential conflicts of interest from being owned by a competitor.
“Kraken is now a globally successful business in its own right, operating independently for some time – completing our journey to full independence is a strategic and inevitable next step,” Kraken CEO Amir Orad said in a statement.
Incoming CFO Wan was the finance chief at U.S.-listed software platform Asana from 2017 until 2024 where he oversaw the company’s market listing.
While Octopus Energy did not provide specifics of Kraken’s spin off, a Sky News report in July said the technology group could be valued at as much as 10 billion pounds ($13.63 billion), if separated.
The spin off is also expected to boost Australian electricity and gas retailer Origin Energy, which owns about 23% of Octopus.
Origin did not immediately respond to a request for comment.
($1 = 0.7339 pounds)
(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich)