8-15-13
Sirius XM Radio is buying the connected vehicle services business of Agero for $530 million in cash. The connected vehicle unit of Agero provides telematics services, offering safety, security, and convenience services for drivers and end-to-end, turnkey solutions for automakers. Following the acquisition, SiriusXM will provide connected vehicle services to more automotive manufacturers -- including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan, and Toyota -- than any other telematics provider.
SiriusXM CEO Jim Meyer said, "The acquisition of Agero's connected vehicle business is a natural fit for SiriusXM. As the world's leading provider of in-vehicle subscription services, SiriusXM is uniquely positioned to offer world-class, end-to-end telematics services. 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. Agero's connected vehicle team is known for their experience, innovation, and technology, and we look forward to welcoming them to SiriusXM as we work to capture the significant growth opportunities in connected vehicle services."
The transaction is subject to the expiration or early termination of the Hart-Scott-Rodino antitrust waiting period and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2013.
Morgan Stanley acted as financial advisor to SiriusXM in connection with this transaction.
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