Computer technology giant Oracle has acquired utility cloud software services provider Opower in a US$532 million deal.Oracle’s new purchase will allow the company to expand its portfolio of cloud software for the utilities industry. It is reported that US$10.30 per share of Opower. The price represents a 30% premium over Opower's closing share price Friday of US$7.90, states the Wall Street Journal.
Roger Smith general manager of Oracle’s utilities global business unit claimed that the deal would “make Oracle the largest provider of cloud services to utilities.”
“Utilities want modern technology solutions that work together to meet their evolving customer, operational and compliance needs,” said Smith on the announcement of the transaction.
Opower provides mission-critical cloud services to utilities. The Texas-based company has worked with the likes of PG&E, Exelon, SMUD and National Grid to deliver a modern digital customer experience. The firm claims to store and analyze more than 600 billion meter reads from 60 million utility customers. Fortune notes that in theory, that data mass enables utilities to meet regulatory requirements and cut costs.
CEO and co-founder at Opower, 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.
“We are excited to join Oracle and to bring even more value to our customers as part of the Oracle Utilities Industry Cloud Platform."
Aggressive appropriation strategy
[quote] The Wall Street Journal describes Oracle as an “aggressive acquirer” who has recently added several companies to its appropriation list, assisting it to broaden its offering.
In the first nine months of Oracle’s fiscal year, the company’s revenue from cloud software had risen 42%.
Just last week, Oracle acquired construction contracts and payment management cloud service company Textura for US$663 million.