Sirius XM to acquire telematics biz of Agero for $530 million in cash

Article by Anita Panait, on August 19, 2013

Sirius XM Radio Inc. has reached an agreement to purchase the connected-vehicle services business of Agero Inc. for $530 million in cash. The purchase means Sirius would have the capability to provide telematics services for vehicles like security, safety and other technologies. The concerned companies are expected to finalize and complete the transaction in the fourth quarter of 2013, Sirius said in a statement.

Sirius currently offers radio and data services in more than 50 million vehicles. Sirius said the acquisition will enable it to provide connected-vehicle services to more carmakers like Acura, BMW, Honda, Hyundai, than any other provider. Sirius chief executive Jim Meyer said in the statement that the deal accelerates the company's "development in architecture supporting connected vehicle services, as well as the ability to provide services over both satellite and cellular networks."

In July, Sirius selected AT&T to provide mobile connectivity for the telematics system it is developing for Nissan Motor Co. in North America. Nissan selected SiriusXM to be its exclusive telematics supplier in September 2012.

Agero currently serves over 75 million vehicle owners in partnerships with carmakers, insurance carriers and others. Agero chief executive Dave Ferrick remarked that while telematics has been an important and growing part of their business, selling its connected-vehicle services business will enable them to focus their resources in their roadside vehicle assistance, claims management and information services. [source: Bloomberg]

If you liked the article, share on:

Comments

Recommended

There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 2017
Hyundai is introducing a new 2018 Accent that is not only wider and longer, but is now also sporting a new look that is more serious than the previous model....
by - February 20, 2017
Fans and enthusiasts of the BMW M2 in the United States could now rejoice. This comes as their favorite BMW M2 is getting a limited edition version as prepped by...
by - February 20, 2017
Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries