Agero, Inc. to Divest its Connected Vehicle Services Division to SiriusXM Radio Inc.
MEDFORD, Mass., Aug. 15, 2013 /PRNewswire/ -- 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.
With over 40 years of experience, Agero is the leading provider of vehicle and driver safety and security services, including roadside assistance, consumer affairs and claims management services. The company serves over 75 million vehicle owners in partnership with leading automobile manufacturers, insurance carriers and others. Managing a network of over 30,000 service providers responding to more than 12 million requests annually for emergency assistance, Agero leverages advances in technology and information services to accelerate and enhance response to drivers' needs while strengthening customer loyalty. Agero, a member company of The Cross Country Group, is headquartered in Medford, Mass., with operations throughout North America. To learn more, visit www.agero.com.
About Sirius XM Radio
Sirius XM Radio Inc. is the world's largest radio broadcaster measured by revenue and has more than 25 million subscribers. SiriusXM creates and broadcasts commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment; and the most comprehensive Latin music, sports and talk programming in radio. SiriusXM is available in vehicles from every major car company in the U.S., from retailers nationwide, and online at siriusxm.com. SiriusXM programming is also available through the SiriusXM Internet Radio App for Android, Apple, and BlackBerry smartphones and other connected devices. SiriusXM also holds a minority interest in SiriusXM Canada which has more than 2 million subscribers.
SOURCE Agero, Inc.