Oracle Buys Opower for $548 Million

Oracle Corp. (ORCL) To Tap US Utility Transition With Purchase Of Energy Efficiency Developer Opower Inc. (OPWR)

IBT, May 2, 2016. Image credit: Peggy_Marco

U.S. software giant Oracle Corp. says it wants a slice of the clean energy transition unfolding across America’s $2.3 trillion utilities industry.

Oracle (NYSE:ORCL) announced Monday it will buy software-as-a-service company Opower Inc. (NYSE:OPWR) for about $548 million in cash. Opower provides cloud services and big data analysis to help more than 100 global utilities to boost their energy efficiency and provide better customer service.

U.S. power companies are wrestling with how to modernize their business models in an era of plunging coal and natural gas prices, flattening demand for power and policies that increasingly encourage renewable energy over traditional fossil fuels to address climate change. Some of the major players, including Opower customers National Grid and Pacific Gas & Electric Co., are searching for new streams of revenue to replace declining power sales and returns on grid infrastructure projects.

Read More