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Sirius XM has more than 25 million subscribers (Photo: Sirius XM)

Sirius XM Radio is buying the connected vehicle services business of Agero as it strives to broaden its footprint beyond its core radio offering. Sirius is paying 530 million dlrs in cash for the Agero operations.

The US-based satellite radio company said the acquisition of the telematics specialist will increase the automotive customer base for its connectivity offerings. It cited among its automaker customers Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota.

Sirius wants to strengthen its position in telematics, which it sees as crucial to the future of the auto industry. "The acquisition of Agero's connected vehicle business is a natural fit for Sirius XM," CEO Jim Meyer said in a press release. Telematics services are a logical extension of the company's existing base of in-car subscription services, he added. Sirius has more than 25 million subscribers to its satellite radio services.

"The transaction accelerates SiriusXM's development in architecture supporting connected vehicle services, as well as the ability to provide services over both satellite and cellular networks," Meyer said.

The transaction is expected to close before year-end 2013.