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Octopus Energy Group is continuing its growth with the purchase of Manchester-based tech firm Upside Energy.
The company, which includes Octopus Energy, Octopus Energy for Business, Octopus Electric Vehicles and Kraken Technologies, will use the acquisition to help with the establishment of its energy innovation centre.
While no number has been given for the value of the deal, Octopus confirmed it was an eight-figure sum.
Upside Energy, which was founded in 2014, has developed a cloud-based platform that can connect with technologies such as electric vehicles, heat pumps and batteries to manage supply and demand in real time and help keep the power grid in balance. The firm will be integrated into Kraken Technologies – the developer of Octopus’ own proprietary energy platform.
Octopus says its new energy innovation hub will play a pivotal role in achieving the company’s aim to make the UK the “Silicon Valley of energy”, which it announced earlier this year.
Greg Jackson, chief executive and founder of Octopus Energy Group, said: “I’m hugely impressed by Upside’s team and efforts in building a deep-tech platform that does fantastic things with real-time energy, connected home devices, and renewables.
“Forward-thinking businesses like Upside are one of the reasons why I’m convinced that we can make the UK the ‘Silicon Valley of energy’. We’re delighted to welcome these brilliant minds into our team to drive the green EnTech revolution here in the UK and abroad.”
Upside Energy chief executive Devrim Celal said: “I’m really excited for Upside as we become part of Octopus Energy Group and take advantage of the opportunities this acquisition will bring.
“We are joining forces with a like-minded team who share our ambitions to play a major role in achieving the transition to a net-zero world. Together, we have the opportunity to drive global growth and continue to develop our brilliant team to solve the complex challenges ahead.”
Last year Jackson told Utility Week his company was in its “expansion phase” after acquiring German utility 4hundred.
A subsequent deal saw Australian firm Origin Energy purchase a 20 per cent stake in Octopus for £300 million, meaning the London-based supplier achieved so-called unicorn status with a value of more than £1 billion.
In September this year, the company expanded into the US market with the acquisition of Evolve Energy, a Texas and Silicon Valley-based startup for $5 million.
Starting in Texas, the business will be known as Octopus Energy US and the company aims for its Kraken platform to eventually have a presence in all 50 states, targeting 25 million US accounts by 2027 – a significant portion of the 100 million it is striving for globally.
The Kraken platform has also been licensed to a number of UK firms, including Eon and Npower and Good Energy.
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