Agero to Divest its Connected Vehicle Services Division to SiriusXM Radio Inc.
MEDFORD, MA--Aug. 15, 2013: Agero, Inc. announced today that it has entered into a definitive agreement under which SiriusXM Radio Inc. will acquire Agero, Inc.'s connected vehicle services division.
The connected vehicle division of Agero is a leading provider of innovative telematics services for automakers.
"As the automotive telematics industry has evolved, connected vehicle services have become increasingly focused on integration and infotainment, and we believe that SiriusXM is perfectly positioned to take these capabilities forward in this changing market," said Dave Ferrick, CEO of Agero. "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. I would particularly like to thank the dedicated associates of our connected vehicle division for their remarkable contributions during our ownership of the business. On behalf of the shareholders and the senior executive team, we wish them, together with SiriusXM, much success as they move forward in this exciting industry."
Agero currently works with 70% of the top automotive manufacturers in the US and 8 of the top 10 automotive insurance carriers. With this divestiture, the company will continue to accelerate the development and delivery of new services to enhance its leadership position in roadside assistance, consumer affairs, claims management and related new services.
The transaction is subject to the expiration or early termination of the Hart-Scott-Rodino antitrust waiting period and other customary closing conditions, and is expected to close in the fourth quarter of 2013. Agero is being advised in the transaction by TAP Advisors.