Sirius XM Radio has entered a definitive agreement to buy the connected vehicle services business of Agero, Inc. for $530 million in cash.
Agero is the leading provider of road side assistance and other telematics services to car makers. It serves over 75 million car owners.
After the purchase, SiriusXM would provide connected vehicle services to more auto makers–including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota– than any other telematics provider.
The satellite radio company said, “Telematics and connected vehicle solutions are key elements in the future of the auto industry. The acquisition of the connected vehicle business of Agero establishes SiriusXM as the leading provider for services in this growing industry.”
SiriusXM CEO Jim Meyer said, “The transaction 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 purchase is expected to be finalized in Q4.