Oracle to Buy Utilities-Software Maker Opower for $532 Million
02 May 2016 - 11:57PM
Dow Jones News
By Joshua Jamerson
Oracle Corp. said it agreed to acquire utilities cloud-services
provider Opower Inc., expanding the database giant's portfolio of
cloud software for the utilities industry.
Oracle will pay $10.30 a share in cash, a roughly 30% premium
over Friday's closing price. The deal is valued at about $532
million, net of Opower's cash.
Opower's stock rose 31% to $10.31 in premarket trading as Oracle
remained unchanged from Friday's closing price of $39.86.
Rodger Smith, general manager of Oracle's utilities global
business unit, said the tie-up would make Oracle the largest
provider of cloud services to utilities.
Oracle, an aggressive acquirer, has frequently picked up
companies to fill out its offerings, and the company has looked to
its cloud-computing business to provide growth. Through the first
nine months of the Oracle's fiscal year, the company's revenue from
cloud software had risen 42%.
Opower's software stores and analyzes meter reads from 60
million utility end customers. Its clients include more than 100
global utilities, such as Exelon and National Grid. The company in
March offered a downbeat forecast for 2016, sending shares down to
record lows.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 02, 2016 09:42 ET (13:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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