Octopus Energy plans to spin out its lucrative software division, Kraken, as a separate company, according to reports.
Founded in 2015, Octopus Energy — which supplies gas and electricity to customers in the UK and six other countries — recently recorded £159m in post-tax profit according to full-year results published in April, a 12% dip.
But in the same period, Kraken Technologies, which licenses software to other energy companies, saw profits surge 483% to £35m.
According to Sky News, Octopus is in the process of spinning out Kraken, recruiting bankers to oversee a demerger which could see the new company valued at around £10bn.
The report suggests Octopus plans to retain a controlling stake in the company, with plans to invite external investors to bid for the remaining shares.
Octopus boasts more than 7m UK customers following its 2022 rescue of bankrupt energy supplier Bulb and, in January, announced it had become the nation's biggest energy provider, with a 24% market share.
Sifted approached Octopus for comment.
