Oracle buys OPower for $532m
May 17, 2016
Oracle has entered into a definitive agreement to acquire OPower, a provider of customer engagement and energy efficiency cloud services to utilities, for $10.30 per share in cash. The transaction is valued at approximately $532m, net of OPower’s cash.
OPower’s products enable more than 100 global utilities, such as PG&E, Exelon and National Grid, to deliver a modern digital customer experience. Its big data platform stores and analyses more than 600 billion meter reads from 60 million utility end customers, enabling utilities to meet regulatory requirements proactively, decrease the cost to serve and improve customer satisfaction.
“Utilities want modern technology that works together to meet their evolving customer, operational and compliance needs,” said Rodger Smith, senior vice president at California-based Oracle. “Together, Oracle Utilities and OPower will be the largest provider of mission-critical cloud services to utilities.”
The board of directors of OPower has unanimously approved the transaction. The transaction is expected to close in 2016, subject to OPower’s stockholders tendering a majority of outstanding shares and derivative securities exercised prior to the closing of the tender offer, certain regulatory approvals and other customary closing conditions.
“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 executive officer and co-founder of OPower. "We are excited to join Oracle and to bring even more value to our customers as part of the Oracle Utilities Industry Cloud Platform."
In a letter to customers and partners, Smith added: “Oracle is committed to protecting and enhancing customer investments in OPower’s solutions. OPower management and employees will maintain their focus on serving customers. Oracle’s industry organisations maintain unique domain knowledge, specialised expertise and focused product investments, which currently includes more than 22,000 Oracle employees and over $700m in annual R&D spend. This model has proven highly successful across several industries, and we look forward to bringing these same benefits to the customers of OPower.”