Sirius XM Radio (Nasdaq: SIRI) is buying a unit of Agero Inc. for $530 million in cash.
Sirius is picking up Agero’s connected vehicle services business, which provides safety, security and convenience services to drivers. The company is headquartered in Medford, Mass.
After the deal closes, Sirius will provide connected-vehicle services to more car makers, including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota.
New York-based Sirius offers satellite radio entertainment and data services in more than 50 million vehicles. The company expects the acquisition to establish it as a leading provider of services to the growing connected-vehicle services industry.
Morgan Stanley acted as financial adviser to Sirius. Bingham McCutchen LLP acted as Agero’s legal counsel on the deal.