GE Digital, a subsidiary of the American multinational conglomerate corporation General Electric (NYSE: GE), has inked a deal to snap up software company Opus One Solutions Energy Corporation. The financial terms of the deal were kept under wraps.
Following the news, shares of the company rose 3.4% to close at $93.06 on Tuesday.
Canada-based Opus One aids electric utilities in optimizing energy planning, operations, and market management through its innovative software solutions, with an advanced model-based software platform, GridOS.
The acquisition is likely to conclude within 30 days.
Benefits of the Acquisition
Through this acquisition, Opus One’s renewable energy planning capabilities, along with GE Digital’s network management and optimization portfolio, will aid in the integration of renewables and Distributed Energy Resources (DERs) in the electric world. Additionally, the combined software solutions will benefit transmission, distribution, and market operators in making the electric grid stronger, sustainable, and reliable, in an optimal way.
General Manager of GE Digital’s Grid Software business, Jim Walsh, said, “Electric utilities around the world face new obstacles with the rapid growth of renewables and DERs. With increased demand for renewable energy and electric vehicles in every region, challenges for grid and market operators are more acute every day.”
“GE’s century of continuous grid innovation combined with Opus One’s energy-focused team will bring together the brightest minds to build the new energy ecosystem with our customers. This acquisition reinforces GE Digital’s commitment to helping our customers transition to a sustainable grid,” Walsh added.
Recently, Saree Boroditsky, an analyst from one of the Top Research Firms, Jefferies, maintained a Hold rating and a price target of $100 (7.46% upside potential) on the stock.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 8 Buys and 5 Holds. The average General Electric price target of $119.15 implies 28.04% upside potential. Shares have gained 9.6% over the past year.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 78% Bullish on GE, compared to a sector average of 67%.