Digital giant Oracle landed a $535 million deal Monday to buy energy software company Opower to form one of the largest smart grid companies in the country.
“Together, Oracle Utilities and Opower will be the largest provider of mission-critical cloud services to utilities,” said Rodger Smith, senior vice president and general manager for Oracle Utilities Global Business Unit.
The company Opower, based in the Washington suburb of Arlington, Va., often has been touted by the Obama administration for its innovative technology. Its digital energy management software is used by three of the largest utilities in the country: Exelon, Pacific Gas & Electric and National Grid.
The company’s software helps enhance communications between the utility and its customers to increase energy efficiency.
“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.
Opower’s board of directors approved the sale, which is expected to close later this year.
Opower software is being used by 100 utilities worldwide.
