Dallas, Texas 08/19/2013 (Financialstrend) – The Sirius XM Radio Inc (NASDAQ:SIRI) recently made announcement about their acquisition of the connected vehicle business of Agero Inc for $530 million in cash. This connected vehicle unit is the leading provider of innovative telematics services offering safety and convenience services for drivers and also end to end turnkey solutions for automotive companies.
Once the acquisition is completed, Sirius XM will start to offer connected vehicle services to major and popular auto companies like BMW, Acura, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota.
This acquisition of connected vehicle business of Agero is a natural fit for Sirius XM. Sirius XM is the leading provider of the subscription services within vehicles. Sirius XM offers data as well as entertainment services in over 50 milion vehicles.
The Sirius XM radio strongly believes that the immaculate telematics and highly efficient and impeccable connected vehicle solutions shall form the basis of the auto industry in near future.
This transition is expected to terminate in the fourth quarter of the year 2013.
Sirius XM To Step Into Telematics Segment
The largest satellite broadcaster in the U.S, Sirius XM Radio Inc is all set to add variability into its business model. The company is set to bring transition in its identity from a pure entertainment provider to a web based safety and navigation information provider for cars. The telematics services will provide driver alerts, vehicle maintenance information, location based content for traffic information, nearby gas stations and much more in terms of navigation.
Recently, the company acquired the connected vehicle services unit of Agero Inc for a price of $530 million in cash. The deal is expected to be locked by the fourth quarter of 2013. This deal will enable Sirius XM to offer both satellite and wireless services.
Sirius XM at present offers satellite radio broadcasting services in more than 50 billion cars and now with the advent of wireless services this figure is expected to grow manifolds.
Stepping into the telematics segment will help the company to attain essential growth momentum and also to compete with full power with the Pandora Media Inc. The telematics market according to the researchers offers a $4.2 billion opportunity, which is considerably large.