SiriusXM Buys Connected Car Service

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Sirius XM teams with BOLT ON

SiriusXM announced it has purchased Automatic Labs Inc. (Automatic), based in San Francisco, which offers OBD2 devices for car tracking and diagnostics plus other services.

In addition to offering consumer OBD2 tracking, Automatic also works with insurance carriers to allow usage-based savings and teen driver coaching.  And it works with car dealers to help them manage their vehicle inventory and manage customer service relationships.

“The acquisition of Automatic is a natural fit for SiriusXM as we continue to expand and improve our connected vehicle services,” said Jim Meyer, Chief Executive Officer, SiriusXM.

“It will enable us to target the vast majority of cars on the road that have no connectivity,” he told analysts in a conference call Thursday.

“Automatic’s innovative products have brought safety and intelligence data and analytics to the forefront of vehicle connectivity. We are excited to welcome the talented employees at Automatic to SiriusXM as we expand the possibilities of connected vehicle offerings and services for manufacturers, drivers, and enterprises.”

Automatic will continue to be based in San Francisco, and the Automatic brand, its products and services, and arrangements will continue unchanged.

SiriusXM did not respond to our request for more information.

Meyer said SiriusXM will give more details on its plans with Automatic towards the end of the year.

SiriusXM also announced Thursday it has reached 31.6 million subscribers, adding 257,000 subscribers.

It reported record revenue of $1.3 billion, up 8 percent, with net income of $207 million in the first quarter 2017, up 20 percent from $172 million in the first quarter 2016.

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