Octopus Energy to acquire Octopus Renewables
Octopus Energy (LON:OOA) confirmed its intention to acquire Octopus Renewables on Friday in a deal worth up £3bn.
The agreement with its sister company means the energy startup will become one of the biggest renewable energy investors in Europe, bringing green energy to 50m homes in the next six years.
While the acquisition remains subject to regulatory approval, it would see the formation of a new business area from June and beyond called Octopus Energy Generation. This arm will manage Octopus Renewables’ European portfolio of more than 300 clean energy assets with a combined capacity of 2.8GW across six countries, according to the company.
The rapidly expanding energy company is aiming to grow its international business to 50m customers by 2027, as well as plans to scale-up its renewable energy division to generate as much clean electricity as it distributes.
After its launch in 2015 by the asset manager Octopus Group, which also owns Octopus Renewables, Octopus Energy saw rapid growth over the past couple of years, including a number of acquisitions helping to push its valuation above $2bn.
Greg Jackson, CEO and founder of the energy startup, said: “We are absolutely thrilled to join forces with Octopus Renewables, bringing the supply and the generation side of energy together under one roof.”
“This move will allow us to create a business that is unrivalled on the global stage; by combining our tech and consumer-led approach with the fund management expertise of Octopus Renewables, we can change the entire energy lifecycle, make every green electron matter, and deliver the green energy transition faster and cheaper for everyone,” Jackson added.
Jackson owns a 7.4% stake in in the company and became one of the most successful green energy entrepreneurs in UK history after earning a paper fortune of around £115m following the company’s £2bn valuation last year.