SiriusXM to Get More Involved in Telematics
SiriusXM intends to acquire the telematics arm of Agero.
The satcaster says the deal, $530 million in cash, is for the connected vehicle unit, which offers safety, security and convenience solutions.
SiriusXM says after the deal closes it will provide connected vehicle services to more automakers, including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota. The deal comes a month after SiriusXM, AT&T and Nissan formalized a partnership for in-car services, we reported.
SiriusXM CEO Jim Meyer says the Agero deal “accelerates SiriusXM’s development in architecture supporting connected vehicle services, as well as the ability to provide services over both satellite and cellular networks.”
The companies expect the deal to close in the fourth quarter, though the transaction is subject to antirust review and other usual closing conditions.
Morgan Stanley advised SiriusXM about the arrangement.