US based radio services provider SiriusXM has signed a definitive agreement to acquire the connected vehicle services business of the telematics provider Agero for $530m.
After the completion of the transaction, SiriusXM will offer connected vehicle services to automotive manufacturers including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota.
The move is expected to be a part of company's plan to develop its business in the area of providing telematics to the automotive manufacturers.
SiriusXM chief executive officer Jim Meyer said the transaction accelerates the company'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," Meyer added.
Following the acquisition, the SiriusXM plans to expand into new business in order to offer services to car manufacturers and consumers.
The connect vehicle business of Agero includes safety and security, data and diagnostics, location based content, navigation and lifestyle.
