SiriusXM Gets Connected With Automatic in $100 Million Deal
This week it was announced SiriusXM would acquire San Francisco-based connected car company Automatic Labs Inc. in a deal worth $100 million, according to TechCrunch.
The acquisition brings together two giants in the connected car industry with Automatic’s data driven platform providing drivers with vehicle diagnostic alerts, emergency crash assistance, fuel monitoring, access to parting information and live vehicle location tracking, joining SiriusXM which offers leading, commercial-free audio entertainment and data services in vehicles as well as safety, security and convenience services.
The acquisition follows a solid 12 months for New York-based SiriusXM, which added a net of 257,000 new subscribers last quarter, taking its total to around 31.6 million. Its net income rose to $207.1 million in the three months ending 31 March, which is up from $172.4 million in the same quarter last year.
The acquisition of Automatic will strengthen SiriusXM’s position in the burgeoning connected vehicle market. Research from McKinsey supports this, with its projection that new connected car services could create up to $1.5 trillion in additional revenue potential in the automotive industry by 2030.
In a statement regarding the deal, Jim Meyer, CEO of SiriusXM said: “Automatic’s innovative products have brought safety, intelligence data and analytics to the forefront of vehicle connectivity. We are excited to welcome the talented employees at Automatic to SiriusXM as we expand the possibilities of connected vehicle offerings and services for manufacturers, drivers and enterprises.”
Gary Clayton, CEO of Automatic echoed Meyer’s statement: “Automatic is thrilled to join forces with SiriusXM at such an exciting time for the connected car industry. Automakers, enterprises and consumers are looking for the best products with world-class capabilities, and our teams will continue to bring innovation to the connected vehicle landscape under SiriusXM.”
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