US software giant Oracle Corp will buy Opower Inc., a maker of software
for utilities, for about $548 million in cash. Opower provides cloud
data solutions to the utilities industry. The company also stores and
analyzes over 600 billion meter readings from 60 million utility
customers through its cloud service, as per Oracle. This data lets their
subscribers stay ahead of customer and regulatory requirements and
achieve greater overall efficiency.
As per the deal, Oracle will pay $10.30 for each outstanding Opower share. This represents a 30% premium compared to Opower's closing price on Friday. Oracle said on Monday the deal was worth about $532 million net of cash.
The equity value is based on Opower's 53.2 million shares outstanding as of February 29.
As Oracle spars to find a place in the cloud market in which it competes with AWS, Salesforce, Microsoft, Google, IBM and others, it's using its cash stockpile to expand its position in the market. While the company's revenues have shown some progress in the cloud sector, it has made the bulk of its money over the years selling licensed software and hardware.
The Opower board has approved the deal and awaits standard regulatory and stockholder approvals. As for Oracle, the company expects the deal to close some time later this year.
As per the deal, Oracle will pay $10.30 for each outstanding Opower share. This represents a 30% premium compared to Opower's closing price on Friday. Oracle said on Monday the deal was worth about $532 million net of cash.
The equity value is based on Opower's 53.2 million shares outstanding as of February 29.
As Oracle spars to find a place in the cloud market in which it competes with AWS, Salesforce, Microsoft, Google, IBM and others, it's using its cash stockpile to expand its position in the market. While the company's revenues have shown some progress in the cloud sector, it has made the bulk of its money over the years selling licensed software and hardware.
The Opower board has approved the deal and awaits standard regulatory and stockholder approvals. As for Oracle, the company expects the deal to close some time later this year.
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