Satellite radio broadcasting company SiriusXM just recently announced the acquisition of consumer and enterprise connected vehicle services company Automatic, which makes connected-car OBD-II ports, adapters and related apps for iOS and Android.
“The acquisition of Automatic is a natural fit for SiriusXM, as we continue to expand and improve our connected vehicle services,” said Jim Meyer, chief executive officer, SiriusXM. “Automatic’s innovative products have brought safety and 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.”
Automatic will remain a separate brand, according to the companies, and users won’t experience any device disruptions.
SiriusXM’s addition of Automatic to its connected car products, which TechCrunch noted came with a price tag of just over $100 million, will allow the broadcasting company to strengthen its position in the burgeoning space.
Automatic’s devices let users track miles and receive crash alert services, along with a host of third-party integration options.
“Automatic is thrilled to join forces with SiriusXM at such an exciting time for the connected car,” said Gary Clayton, Automatic’s CEO. “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.”
As the consumer and financial world learns more about its connected car future, tech and automotive companies are forming new partnerships and upping investments to secure their share of projected revenue.
Research from McKinsey projects that new services alone generated by the connected car space — on-demand mobility services, data-driven services like applications, software and remote services — could create up to $1.5 trillion in additional revenue potential in the automotive industry by 2030.
Naturally, everyone’s gunning it in the race to get a piece of the connected car cash cow.