Oracle entered into a definitive agreement to buy 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 about $532 million, net of Opower's cash.
Opower's big data platform stores and analyzes over 600 billion meter reads from 60 million utility end customers, enabling utilities to proactively meet regulatory requirements, decrease the cost to serve, and improve customer satisfaction.
"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, Oracle Utilities Global Business Unit. "Together, Oracle Utilities and Opower will be the largest provider of mission-critical cloud services to utilities."
"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, CEO 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."
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 Opower's outstanding shares and derivative securities exercised prior to the closing of the tender offer, certain regulatory approvals and other customary closing conditions.