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KPMG advises Octopus Energy and Octopus Group on its partnership and 20% equity stake sale to Origin Energy

KPMG advises Octopus Energy and Octopus Group

Octopus Energy, the UK energy technology group today announces a major strategic partnership with Australia’s leading energy company, Origin Energy.

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KPMG acted as lead advisors in the agreement, which will see Origin take a 20% stake in the company and license Octopus Energy’s technology platform, Kraken, to accelerate the transformation of its Australian retail business, deliver an improved customer experience and to provide cleaner and smarter energy solutions. Origin will also provide a three year company guarantee to support the working capital for Octopus Energy’s UK and international energy business.

The Origin deal is in addition to the technology licencing partnerships already announced by Octopus this year – namely with Good Energy and E.On. Octopus Energy’s technology deal with E.On, announced last month, will see Npower and E.On’s 6 million UK customers move onto Octopus Energy’s Kraken platform.

Octopus remains majority owned by Octopus Group, the £9bn UK investor in energy, technology and growth businesses. Octopus is the UK’s largest investor in solar energy, and has recently announced Australia’s largest solar farm.

Octopus Energy’s own retail business now provides gas and electricity to 1.5 million homes in the UK. Its unparalleled customer service and value have won a plethora of awards, including Which? Utility Of The Year, USwitch Supplier Of The Year, Utility Week Supplier Of The Year, UK Employee Awards Best Company To Work For and these are matched with outstanding ratings on both Trustpilot and Glassdoor.

Origin Energy is a leading Australian energy company with approximately 4.2 million customer accounts in addition to significant generation capacity. This deal, a first-of-its-kind deep commercial collaboration between a UK-based challenger retailer, and an established Australian utility, cements Octopus’ reputation as exemplary of a company built to address the demands of the future of energy.

KPMG were lead financial advisor to Octopus Energy and Octopus Capital, supporting the companies throughout a rigorous process. The key for Octopus was to find the right strategic partner with alignment on vision, strategy, scale of ambition, and commitment to the energy transition. The partnership between Octopus and Origin meets all of these criteria, with clear commitment on both sides to drive forwards together at pace.

Gavin Quantock, Co-head of Energy M&A at KPMG, said:

“We are delighted to have been on such a significant journey, not just for Octopus, but for a radically changing global energy market. This is one of the biggest ever transactions in the independent UK energy retail market, driven by a company with the components needed to succeed in challenging times. The prominence of Octopus’ platform as a differentiator reinforces the crucial role of technology as the industry globally moves through the energy transition, and KPMG are proud to have played a part in powering Octopus to the next stage of its global corporate journey.”

Octopus Energy Founder and CEO, Greg Jackson, added:

“We’re thrilled to be able to accelerate our global expansion to make the green energy transition cheaper and faster. It’s a testament to our team and our technology that in just four years we’ve created a business which has the world beating a path to our door and can face the future with such excitement. We’ve known Origin for a long time, and it has the most forward-thinking management of any market-leading energy company we’ve met. We’re looking forward to working with Origin to use technology to reduce energy costs, increase renewables and improve customer service in the UK, Australia, Germany and now many more countries too.”

Speaking for Octopus Group, Founder and CEO, Simon Rogerson commented:

“We’ve backed hundreds of businesses over the last 20 years, and none has greater opportunity to deliver transformation and value at scale than Octopus Energy. Its technology, team and dedication to customers make it a potential world-beater and we’re delighted to welcome Origin to join us in backing it on the next stage of its rocketship trajectory.”

Origin Energy CEO, Frank Calabria, added:

“We have been on a path to make energy easier and simpler for customers, to transform our retail business by putting customers at the heart, and to accelerate the rollout of cleaner and smarter energy solutions. By partnering with Octopus and deploying its technology platform, we can fast-track our ambitions and achieve better outcomes for our customers, people and shareholders. We’re also pleased to be investing in a company with an operating model and technology platform that genuinely sets it apart globally, and we see exciting opportunities for our businesses to collaborate, share expertise and continue to grow and prosper in the fast changing world of energy.”


For media queries, please contact:

Brian O’Neill, Corporate Communications Manager 

T: 07823 668 689 

E: Brian.O’Neill@kpmg.co.uk   

About KPMG in the UK

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 17,600 partners and staff. The UK firm recorded a revenue of £2.40 billion in the year ended 30 September 2019. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

© 2020 KPMG LLP a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.

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