New York — Satellite-radio broadcaster SiriusXM will become the nation’s largest telematics provider in the fourth quarter when it expects its acquisition of Agero’s Connected Vehicle Unit to be complete.
SiriusXM and Agero entered into a definitive agreement in which Sirius will purchase Agero’s telematics unit for $530 million in cash.
Agero provides connected-vehicle services to more automotive manufacturers than any other telematics provider, SiriusXM said. The automakers include Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota. Services include safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers, the company said.
“As the automotive telematics industry has evolved, connected-vehicle services have become increasingly focused on integration and infotainment, and we believe that SiriusXM is perfectly positioned to take these capabilities forward in this changing market," said Agero CEO Dave Ferrick, "While telematics has been an important and growing part of our business, this divestiture allows us to focus our resources in our roadside vehicle assistance, claims management and information services.”
Agero will “accelerate the development and delivery of new services to enhance its leadership position in roadside assistance, consumer affairs, claims management and related new services,” the company added.
Last September, SiriusXM announced that it had developed its own telematics platform and that Nissan would be the first to offer it. A timetable for that launch hasn’t been announced. SiriusXM has also said it was in conversations with automakers to offer its telematics service platform.