Oracle Buys Opower For $532 Million

Oracle Corporation ORCL and Opower OPWR struck a definitive agreement under which the former would acquire the latter for about $532 million in cash. The company would pay $10.30 a share in cash.

Oracle's SVP and President and GM for its Utilities Global business unit, Rodger Smith, commented, "Utilities want modern technology solutions that work together to meet their evolving customer, operational and compliance needs. Together, Oracle Utilities and Opower will be the largest provider of mission-critical cloud services to utilities."

Similarly, Opower co-founder and CEO, Dan Yates, reacted to the acquisition by stating, "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."

Opower said its board has already unanimously approved the transaction, which was expected to close in the current year, subject to its stockholders tendering a majority of Opower's outstanding shares and derivative securities exercised before the closing of the tender offer. In a nutshell, further progress depended on some regulatory approvals and other customary closing conditions.

In the pre-market trading on Monday, Opower traded 30.6 percent higher.