SiriusXM To Buy Connected Vehicle Unit Of Agero For $530 Mln - Quick Facts

(RTTNews) - Radio Broadcaster Sirius XM Radio Inc. (SIRI) has agreed to acquire the connected vehicle services business of Agero, Inc. for $530 million cash. The connected vehicle unit of Agero provides innovative telematics services, offering safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers. Following the purchase, SiriusXM would provide connected vehicle services to more automotive manufacturers, including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota, than any other telematics provider.

According to Jim Meyer, SiriusXM's Chief Executive, "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 may be complete in the fourth quarter of 2013. Morgan Stanley acted as financial advisor to SiriusXM in connection with this transaction.