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"Our job is to execute."

-Mark Hurd

Oracle Acquires Opower

Financial Information
  • Enterprise Value                                         $487.3 Million
  • EV/LTM Revenue                                       3.3x

Transaction Facts

  • Oracle (NYSE: ORCL) announced yesterday that it acquired cloud-based energy software company Opower (NYSE: OPWR) for $10.30 per share, a 30% premium over Opower’s closing share price Friday of $7.90.
  • Opower is based in Arlington, VA and provides specialized cloud services focused on the energy and utilities sector to more than 100 global utilities. According to the press release, once Opower is integrated with Oracle’s existing utilities operation suite the combined offering will be the largest provider serving the $2.3 trillion space.
  • The transaction follows Oracle’s acquisition of construction-focused cloud services provider Textura (NYSE: TXTR) last week for $663 million, and is Oracle’s latest acquisition designed to fill out its expanding cloud portfolio.

Rewriting the Playbook with Cloud Front and Center

  • Skating Where the Puck is Going: Today, many companies are incorporating the cloud into their IT infrastructure – even in industries that previously resisted due to security or other sensitivity concerns. By explicitly focusing on cloud growth, both organic and inorganic, Oracle is positioning itself for success in a highly competitive, highly lucrative market.
  • Innovating on a Proven Model: Oracle was already an established presence in the utilities space, providing billing and customer information systems. But Opower’s offerings go beyond basic services, increasing energy efficiency by making usage information more accessible and engaging for consumers.
  • Different Strategies, Similar Goal: Cloud rivals Amazon and Microsoft are similarly focused on driving cloud performance, with each company devoting significant press and promotion to their own cloud growth and revenue numbers. But while Amazon Web Services and Microsoft Azure primarily provide infrastructure solutions, Oracle’s path to cloud dominance centers on building and acquiring applications and platforms.
For more information about this transaction, click here to read the press release.
martinwolf was not the advisor in this transaction.
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