Sirius XM Radio, the world’s largest radio broadcaster measured by revenue, featuring over than 25 million subscribers, announced today that it has reached a definitive agreement to acquire Agero for $530 million in cash. Agero is the leading provider of vehicle and driver safety and security services, including roadside assistance, consumer affairs, and claims management services.
Agero’s connected vehicle unit is the premier supplier of cutting-edge telematics services, offering safety, security, and convenience services for drivers, as well as comprehensive, turnkey solutions for automakers. Once the acquisition is complete, SiriusXM will supply connected vehicle services to more automotive manufacturers than any other telematics provider. Acura, BMW, Honda, Hyundai, Infinity, Lexus, Nissan, and Toyota are among the companies connected with SiriusXM.
SiriusXM offers unrivaled audio entertainment and data services in over 50 million vehicles through its unique footprint in vehicles from every major carmaker. As technology continues to permeate through the auto industry, telematics and connected vehicle solutions will be key elements in that developing trend. Following the acquisition of the connected vehicle unit of Agero, SiriusXM will be entrenched as the leading provider for services in this realm during a critical period of technological integration into automobiles.
“The acquisition of Agero’s connected vehicle business is a natural fit for Sirius XM. As the world’s leading provider of in-vehicle subscription services, SiriusXM is uniquely positioned to offer world-class end-to-end telematics services,” said Jim Meyer, Chief Executive Officer, SiriusXM. “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.
For further information, visit www.sirius.com
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website
http://www.missionir.com/disclaimer.html
