NEW YORK (
Sirius XM Radio
(SIRI - Get Report)
on Thursday said it would acquire assets of
in a $530 million cash deal designed to add more vehicle services to the satellite broadcaster's portfolio.
Medford, Mass.-based Agero is a provider of security, roadside assistance, navigation and other so-called telematics services for drivers. Sirius XM said the deal is part of its push to offer audio and data services to all vehicles, saying that post-deal its wares would be in a wide range of auto brands including
Sirius said it provides auto and data service in more than 50 million vehicles.
Chief executive Jim Meyer called the deal "a natural fit" with Sirius.
"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," Meyer said. "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."
The assets to be sold, then known as ATX Technologies Inc., was acquired by an affiliate of
Cross Country Group
in 2008 and later rebranded as Agero. The deal does not include Agero's claims management, consumer affairs and some roadside assistance assets, which will remain with the company under CEO Dave Ferrick.
"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," Ferrick said.
The deal is expected to close before year's end, subject to regulatory approval.
acted as financial adviser to Sirius XM on the transaction with a
Simpson Thacher & Bartlett
team led by Peter Martelli providing legal counsel.
provided legal counsel to Agero, with a Boston-based team including partners Brian Keeler, Don Abrams, Bill Berkowitz, Rachelle Dubow, Natascha George, Jordan Hershman, Russ Isaia, Amy Mugherini, Peter Pound and Ian Wenniger; counsel Kristen Ferris; and associates Katerina Papacosma, Eron Hackshaw and Jacob Harrell.
Written by Lou Whiteman in New York