Sirius XM Buys Agero: Is It Moving Beyond Radio?
On Thursday, Sirius XM Radio (NASDAQ: SIRI) announced it had entered a definitive agreement to acquire Agero, Inc. for $530 million in cash. Agero is a connected vehicle business and is the leading provider of telematics services, offering safety, security, and convenience services for drivers and end-to-end, turnkey solutions for automakers.
The acquisition means that Sirius XM will now provide connected vehicle services to more manufacturers than any other telematics provider. The list of car manufacturers includes Acura, BMW (BMW.PK), Honda (NYSE:HMC), Hyundai (HYU.PK), Infiniti, Lexus, Nissan (NSANY.PK), and Toyota (NYSE:TM).
The new deal boosts Sirius XM to the top as the leading provider in the growing industry connected vehicle business — a business which is an essential element in the future of the auto industry. Sirius XM will now have access to more than 50 million vehicles.