The transaction values the UK entech company at $4bn pre-deal, and up to $4.6bn post-deal


Octopus Energy to receive $600m investment. (Credit: Bishnu Sarangi from Pixabay.)

UK-based Octopus Energy Group has teamed up with Generation Investment Management to receive up to $600m in additional investment.

The transaction values the company at $4bn pre-deal, and up to $4.6bn post-deal, and Generation’s Long-Term Equity fund will obtain up to 13% stake in the company.

Generation is expected to inject $300m as an immediate investment, with remaining $300m expected by the next year June, subject to certain further funding conditions.

Octopus Energy intends to use the proceeds from the transaction to help boost investments in clean energy generation worldwide.

Octopus Energy founder and CEO Greg Jackson said: “Whilst the UK energy market is currently in a tough state, it’s highlighted the need for investment in renewables and technologies to end our reliance on fossil fuels.

“Three years ago, the management team of Octopus Energy met to discuss growth plans for our fledgling company.

“We watched An Inconvenient Sequel and were inspired to accelerate and expand our mission to make energy greener faster, cheaper, across the globe. Being backed by Generation, co-founded and chaired by Al Gore, enables us to make that dream come true.”

Octopus manages renewable generation projects worth £3bn, creating adequate renewable energy to power around 1.5 million households.

Its technology platform Kraken delivers clean energy solutions to 17 million energy accounts worldwide.

The company operates in the UK, USA, Germany, Spain and New Zealand, and has licensing deals with Good Energy, Hanwha Corporation, Origin Energy, nPower and E.ON.

It has recently taken over Avro Energy’s 600,000 customers, expanding its customer base to 3.1 million by 25 September 2021, from the previous 2.5 million.

Generation Investment Management Long-term Equity strategy partner Tom Hodges said: “Octopus Energy has an extraordinarily good fit with Generation’s mission of investing over the long term to support system and climate-positive companies.

“The world is at the early stages of an unprecedented energy transition which is essential to reach the goals of the Paris Agreement. This can be done in a way that is better for the environment and consumers.

“Octopus and its software platform Kraken are at the forefront of innovation and helping to create the dynamic and flexible renewable energy system needed. Generation is pleased to partner with Octopus Energy to help build that future.”