Retail Supplier With U.S. Arm Receives $600 Million Investment
September 27, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Octopus Energy Group today announced, "a major strategic partnership with Generation Investment Management, a firm established in 2004 to back businesses driving sustainability and the fight against climate change, in a deal that valued the UK entech pioneer at $4 billion pre-deal, and up to $4.6 billion post-deal."
The deal sees Generation take up to an approximately 13% equity stake for consideration of up to $600 million, alongside an approximate $55 million equity investment from Origin Energy, to continue its global expansion and technology development. "This will see Octopus enhancing its smart grid capability and commitment to driving the green energy revolution around the world, with an ambition to support 100 million energy accounts on [Octopus's platform] Kraken by 2027," Octopus said
The deal consists of $300 million immediate investment, with $300 million to follow by June 2022 subject to certain further funding conditions.
Octopus Energy had 2.5 million customers up to 24 September 2021. The company's customer base grew to 3.1 million after taking on Avro Energy's 600,000 customers in the U.K. on 25 September 2021.
Octopus's technology platform, Kraken, is already contracted to serve 17 million energy accounts globally, through Octopus's own retail businesses in the UK, USA, Germany, Spain and New Zealand, plus licensing agreements with Good Energy, Hanwha Corporation, Origin Energy, nPower and E.ON.