SiriusXM to Acquire Connected Vehicle Unit of Agero

Discussion in 'OEM Infotainment Systems' started by SIRIUSaboutXM, Aug 15, 2013.

  1. SIRIUSaboutXM

    SIRIUSaboutXM DRC Special Contributor

    SiriusXM to Acquire Connected Vehicle Unit of Agero, Inc., the Leading Provider of Connected Vehicle Services

    Acquisition Positions SiriusXM as the Leading Telematics Service Provider

    NEW YORK, Aug. 15, 2013 /PRNewswire/ -- Sirius XM Radio (NASDAQ: SIRI) today announced that it has entered into a definitive agreement to acquire the connected vehicle services business of Agero, Inc. 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 end-to-end, turnkey solutions for 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 holds a unique footprint in vehicles from every major carmaker, offering unparalleled audio entertainment and data services available in more than 50 million vehicles. Telematics and connected vehicle solutions are key elements in the future of the auto industry. The acquisition of the connected vehicle business of Agero establishes SiriusXM as the leading provider for services in this growing industry.

    "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.

    Morgan Stanley acted as financial advisor to SiriusXM in connection with this transaction.
     
  2. SIRIUSaboutXM

    SIRIUSaboutXM DRC Special Contributor

    More on this from the Hollywood Reporter:

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    UPDATED: "As the world's leading provider of in-vehicle subscription services, Sirius XM is uniquely positioned to offer world-class end-to-end telematics services," says CEO Jim Meyer.

    Sirius XM Radio said Thursday that it has agreed to acquire the connected vehicle services business of auto services firm Agero for $530 million in cash in a bet that drivers will increasingly use digital information and entertainment offerings.

    The Agero unit is "the leading provider of innovative telematics services, offering safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers," Sirius XM, controlled by John Malone's Liberty Media, said. Its services include navigation services, safety and security features, but also location-based content offers.

    Following the acquisition, which is expected to close in the fourth quarter, Sirius will provide connected vehicle services to more auto makers than any other telematics firm, according to the company.
    "The acquisition of Agero's connected vehicle business is a natural fit for Sirius XM," said Sirius CEO Jim Meyer. "As the world's leading provider of in-vehicle subscription services, Sirius XM is uniquely positioned to offer world-class end-to-end telematics services."

    He added: "The transaction accelerates Sirius XM's development in architecture supporting connected vehicle services, as well as the ability to provide services over both satellite and cellular networks."
    Sirius has been developing its telematics offerings over the past few years in deals with the likes of Nissan and Ford.

    "We also continue to make significant progress in developing our next-generation connected car platform and in driving our telematics business," Meyer said during a recent earnings conference call. "During the second quarter, we launched an in-car IP streaming app with Ford on the same platform. This feature allows Ford customers...to have two-way services, such as Sirius XM on-demand and personalized music through MyXM. It is a first step in creating an in-vehicle experience that harnesses both satellite and IT. Our effort with Ford is just the beginning."

    He later added: "We want to be a leader in the connected car architecture as it rolls out. And I am going to remind you, this isn’t a phenomenon for next spring or next fall, this is a 10 year kind of thing. And so we want to be a part and play a key role as that architecture technology rolls out, so that we are able to pick and be a part of where there are potential service opportunities for us that nicely complement our audio business or enhance our audio business."

    Agero said Thursday that the satellite radio firm is better suited to running its telematics business.
    "As the automotive telematics industry has evolved, connected vehicle services have become increasingly focused on integration and infotainment, and we believe that Sirius XM is perfectly positioned to take these capabilities forward in this changing market," said Agero CEO Dave Ferrick. "While telematics has been an important and growing part of our business, this divestiture allows us to focus our resources in our roadside vehicle assistance, claims management and information services which will allow us to best serve our clients and their customers in a fast-changing marketplace."
     
  3. FlyersFan76

    FlyersFan76 Member

    Interesting. QNX says they had 60% market share but maybe that was a different division of their business.
     
  4. SIRIUSaboutXM

    SIRIUSaboutXM DRC Special Contributor

    SiriusXM Completes Acquisition of Connected Vehicle Services Unit of Agero

    Transaction Secures SiriusXM as a Leading Telematics Service Provider

    NEW YORK, Nov. 4, 2013 /PRNewswire/ -- Sirius XM Radio (NASDAQ: SIRI) today announced that it has completed the previously announced acquisition of the connected vehicle services business of Agero, Inc.

    "We are pleased to complete the acquisition of Agero's connected vehicle services business, creating a leading service provider of telematics and connected vehicle services," said Jim Meyer, Chief Executive Officer, SiriusXM. "With this transaction now complete, we are positioned to accelerate SiriusXM's development of our connected vehicle services platform, supporting the rapidly expanding field of connected vehicle services and strengthening our ability to provide services over satellite and mobile networks. We are pleased to welcome Agero's connected vehicle services team to SiriusXM."

    Already offering unparalleled audio entertainment and data services in vehicles, SiriusXM is uniquely positioned to offer end-to-end telematics services. With this acquisition, SiriusXM will provide connected vehicle services to a host of major automotive manufacturers -- including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota. SiriusXM's offerings will include safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers.

    In connection with the transaction, the business unit will change its name to Sirius XM Connected Vehicle Services Inc.
     
  5. SIRIUSaboutXM

    SIRIUSaboutXM DRC Special Contributor

    This is definitely a positive step in getting SXM's Internet Radio features more accessible in the car :bigclap:

    [​IMG]

    SiriusXM Complete Agero Deal

    Agero, Inc., the leading provider of vehicle and driver safety, security and information services, today announced it has completed the sale of its connected vehicle services division to SiriusXM Radio (SIRI). The deal can set the stage for SiriusXM to better leverage itself with the OEM channel, and more specifically in the emerging world of the connected car.

    SiriusXM has long had various telematics capabilities and services, but as yet has seemed unable to really take its service to the next level and beyond simple audio entertainment. With the purchase of the Agero connected services division, the satellite radio provider can work on deploying the next generation of connected car services.

    last year SiriusXM announced a telematics deal with Nissan, but since has renegotiated several of its OEM deals without any sexy press about a telematics component to them. The connected car is still defining itself, and SiriusXM is just one solution out of many that an auto manufacturer has. In many ways, SiriusXM has bought out a competitor in this space and now will garner greater exposure. There could even be a day when some of the renegotiated deals that did pass up on telematics get renegotiated yet again.

    Satellite radio was an evolutionary product. That torch is now being passed to the connected car. With this purchase SiriusXM has its route into the game and has ensured that they will be a force in the space. From an investors standpoint this deal should be a longer term positive. There will be impacts to the Q4 numbers, but as we already know, there will be other expenses and issues that we will face in Q4. The satellite launch and positioning, the shift of the GM deal impacting subscribers, and the Agero acquisition can all show their near term impacts as we close out 2013. Be smart and be prepared.
     

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