Oracle to buy utilities software maker Opower for $548 mn
03 May 2016
Oracle Corp yesterday struck a deal to buy utilities software maker Opower Inc, for about $548 million in cash.
The latest deal comes barely four days after Oracle agreed to buy cloud-services provider Textura Corp for $663 million, in a bid to expand its Web-based services to the construction industry. (See: Oracle to buy cloud-services provider Textura Corp for $663 million)
Oracle is offering $10.30 per share, a premium of 30.4 per cent to Opower's Friday closing price.
Oracle said that the deal was worth about $532 million net of cash.
The Board of Directors of Opower has unanimously approved the transaction, which is expected to close in 2016, subject to Opower's stockholders tendering a majority of Opower's outstanding shares and derivative securities exercised prior to the closing of the tender offer, regulatory approvals and other customary closing conditions.
Opower's solutions enable over 100 global utilities, such as PG&E, Exelon and National Grid. Opower's big data platform stores and analyses over 600 billion meter readings from 60 million utility end customers, enabling utilities to meet regulatory requirements and decrease cost.
''Utilities want modern technology solutions that work together to meet their evolving customer, operational and compliance needs,'' said Rodger Smith, senior vice president and general manager, Oracle Utilities Global Business Unit. ''Together, Oracle Utilities and Opower will be the largest provider of mission-critical cloud services to utilities.''
''The combination will provide the industry with the most modern, complete cloud applications for the entire utility value chain, from meter to grid to end-customers," said Dan Yates, Chief Co-founder and CEO of Opower Dan Yates, said, "We are excited to join Oracle and to bring even more value to our customers as part of the Oracle Utilities Industry Cloud Platform."
The transaction is expected to close in 2016, subject to Opower's stockholders tendering a majority of Opower's outstanding shares and derivative securities exercised prior to the closing of the tender offer, certain regulatory approvals and other customary closing conditions.