tomtunguz.com – In the past week, Oracle acquired two vertical SaaS companies. OPower is an Arlington Virginia based company that employs approximately 600 people. The company analyzes utility consumption patterns and helps homeowners reduce their energy consumption. Textura provides collaboration tools for the construction industry and is based in Illinois. Oracle paid $663 million, net of cash for Textura and $532 million for OPower.
These two acquisitions form a notable moment in time for the evolution of the vertical software industry. They establish benchmarks for valuing these companies at M&A.; Both of these businesses had been public for at least 12 months, so the valuations aren’t coming out of the blue. Below, the table shows a comparison of the key operating metrics of each business and the ultimate acquisition multiple.
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