Ovo Energy, the UK\u2019s fourth largest household gas and electricity supplier, is looking to sell part of its technology arm, Kaluza. Reports suggest the deal could value Kaluza at more than one billion dollars, making it a potential \u201cunicorn\u201d in the energy tech world.<\/p>\n
The sale is part of Ovo\u2019s plan to strengthen its finances. The company supplies energy to nearly four million customers across the UK. To handle the sale, Ovo has hired investment bank Arma Partners. Ovo owns 80% of Kaluza, while the rest is held by Australian energy firm AGL.<\/p>\n
Kaluza calls itself an energy intelligence platform. It recently signed a licensing deal with French energy group Engie. Industry insiders believe Kaluza could be valued between $1 billion and $2.5 billion, depending on its recurring revenue. To boost growth abroad, Kaluza also bought Beige Technologies, an Australian energy software firm. The business is led by chief executive Melissa Gander.<\/p>\n
The move comes as Ovo works on its wider finances. Investment bank Rothschild has been speaking with potential investors about raising \u00a3300 million for the company. Talks have involved major players like Iberdrola, the owner of Scottish Power, and Centrica, the parent company of British Gas. A deal could be agreed before the end of the year.<\/p>\n
Ovo, like other suppliers, has faced pressure from new rules set by the energy regulator Ofgem. These rules require companies to hold stronger capital reserves. Ovo says it has already taken steps to meet the requirements. To show its commitment to governance, it recently appointed Dame Jayne-Anne Gadhia, former Virgin Money boss, as chair of its retail arm.<\/p>\n
Ovo was founded in 2009 by Stephen Fitzpatrick, who also owns Kensington Roof Gardens in London. Backed by investors such as Mayfair Equity Partners, Morgan Stanley Investment Management, and Mitsubishi Corporation, the company became a serious player in 2020 when it acquired SSE\u2019s retail supply business. This instantly made it one of the UK\u2019s leading energy firms.<\/p>\n
But the journey has not been smooth. Ovo has faced Ofgem scrutiny and complaints from customers about overcharging. The company is now led by David Buttress, former Just Eat boss, who also briefly worked as Boris Johnson\u2019s cost-of-living adviser.<\/p>\n
Selling part of Kaluza highlights a growing trend among UK energy firms. Rivals like Octopus Energy are also exploring deals for their software units. With its global expansion, partnerships, and strong investor interest, Kaluza could become a valuable tool for Ovo to improve its finances while staying competitive in the UK\u2019s energy market.<\/p>\n","protected":false},"excerpt":{"rendered":"
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