Origin Energy Limited announced a strategic set of transactions surrounding Kraken Technologies Limited, marking Kraken’s first standalone USD 1 billion equity raise and drawing new investors led by D1 Capital Partners. Origin will participate with USD 140 million through a primary equity raise and a secondary sale to support Kraken’s independent growth path alongside Octopus Energy. The deal structure retains USD 150 million in Kraken and USD 850 million in Octopus Energy, with Octopus Capital and other investors contributing a further USD 320 million to Octopus Energy as part of the broader growth plan. The transactions follow a March 2024 valuation of USD 9 billion for the combined Octopus Energy and Kraken, with Kraken’s standalone valuation at USD 8.65 billion, inclusive of cash retained, and reflect the growth potential as contracted annual recurring revenue has more than doubled in 18 months.
Post-separation, Octopus Energy will hold a 13.7% stake in Kraken as the foundation customer. The suite of transactions remains subject to regulatory approvals and is expected to take effect upon formal separation of Kraken from Octopus Energy, anticipated in mid-2026. Separately, Origin has agreed to waive exclusivity to the Kraken platform in Australia in exchange for an additional 1.5% equity directly in Kraken, enabling Kraken to license its platform to other utilities in Australia unconditionally. After accounting for the stake retained by Octopus Energy and the dilution associated with new Kraken shares issued, Origin will hold a direct interest of 19.6% in Kraken and an indirect 3.1% through its equity interest in Octopus Energy, for a total of 22.7%.
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