Arlington Agrees to Sell Itself to Oracle for $532 Million
On Monday, Opower, the energy analytics company based in Arlington, Texas said it has agreed to be bought by Oracle for $532 million. It is expected that the deal will close later this year. The deal values shares of Opower at a 30 percent premium as of Friday's close.
Opower sells data services that track energy-use trends across tens of millions of homes. More than 100 utilities including PG&E and Exelon use the service to help meet state-by-state energy efficiency standards.
Opower is a company that was founded in 2007 and went public after seven years in 2014. It reported an operating loss of below $45 million last year along with$145.7 million annual revenue. The business has broadened its reach in recent years moving further than its core analytical business. It found new ways of assisting utilities to connect with customers like informing them by text message at times when the trend of their energy usage are rising or else out of sync.
Chief executive Daniel Yates said, "While energy efficiency has historically been the primary driver of new client acquisition, this year was the first time we saw customer care fuel a significant number of deals."
For Oracle, it's a shopping spree as last week it acquired Textura for $663 million and this week it bagged Opower, which gives it a vertical utilities cloud solution.