Sirius XM Radio to Acquire Connected Vehicle Services Unit for $530 Million
Sirius XM Radio has signed a definitive agreement to acquire the connected vehicle services unit of Agero in an all-cash, $530 million deal, Sirius XM announced today.
Agero's connected vehicle business provides telematics services, including "offering safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers," according to Sirius XM's statement. The Agero unit SIRI is buying provides safety and security technology including driver alerts, along with data systems that tell drivers when their vehicle needs maintenance and other information. The systems also provide location-based content, such as help with traffic information or finding nearby gas stations or restaurants, along with navigation help and voice texting services.
After the deal closes, according to Sirius XM, it will provide telematics services to more auto manufacturers than any company in the industry.
Commenting on the transaction, Sirius XM CEO Jim Meyer was quoted as saying, "The transaction accelerates Sirius XM's development in architecture supporting connected vehicle services, as well as the ability to provide services over both satellite and cellular networks."
The deal is expected to close in Q4 of 2013, and is subject to customary closing conditions.
-- Material from The Associated Press was used in this report.
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