Software giant Oracle buys Opower in a $532 million deal

Software giant Oracle buys Opower in a $532 million deal

PanARMENIAN.Net - Software giant Oracle has acquired cloud-based energy software company Opower in a $532 million cash deal, USA Today reports.

The Redwood Shores, Calif. maker of cloud and software management systems will pay $10.30 per share of Opower, which supplies utilities with cloud-based energy efficiency services and other software. The price represents a 30% premium over Opower's closing share price Friday of $7.90. The companies expect the deal to close by the end of 2016.

Opower (OPWR) shares were up more than 29% in premarket trading. Oracle (ORCL) shares closed Friday down 1.17% to $39.86.

Based in Arlington, Va., Opower provides its cloud services to more than 100 utilities globally. When integrated with Oracle's current utilities operation suite and cloud services for electric, gas and water providers, the companies will become the largest provider to the $2.3 trillion utilities industry, Oracle says.

"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 for Oracle Utilities' global business unit in a statement announcing the transaction. "Together, Oracle Utilities and Opower will be the largest provider of mission-critical cloud services to utilities."

Opower CEO and C-founder Dan Yates said in a statement, "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."

This makes the second recent acquisition for Oracle. Last week, it acquired construction contracts and payment management cloud service company Textura for $663 million.

Oracle's stock is down 10% from a year ago, but up 9% so far this year.

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