The company will now provide services to more automotive manufacturers than anyone else
SiriusXM Radio said Thursday it has entered into an agreement to acquire connected-vehicle services business Agero for $530 million in cash.
The connected-vehicle unit of Agero is the leading provider of innovative telematics services, offering safety, security and convenience services for drivers and 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 already offers audio entertainment and data services to more than 50 million vehicles.
"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," Jim Meyer, chief executive officer, SiriusXM, said in a statement.
The transaction is expected to close in the fourth quarter of 2013.