August 15, 2013 / 11:57 AM / 6 years ago

CORRECTED-Sirius agrees to buy roadside assistance service

(Corrects to say Sirius buys vehicle service unit from Agero, not the entire company)

Aug 15 (Reuters) - Sirius XM Radio Inc agreed to buy the vehicle services business unit from Agero for $530 million in cash, the satellite radio provider said on Thursday.

Agero’s connected vehicle unit provides services such as roadside assistance and alarm notification.

The deal, which is expected to close in the fourth quarter, is part of larger push by Sirius to branch out beyond music to areas like automotive safety, vehicle tracking and roadside assistance.

Based in Medford, Massachusetts, Agero serves over 75 million auto owners in partnerships with auto manufacturers, insurance carriers and others.

With the Agero deal, Sirius said it will provide services to several automotive manufactures, including Bayerische Motoren Werke AG , Honda Motor Co Ltd, Nissan Motor Co Ltd and Toyota Motor Corp.

Morgan Stanley served as an adviser to Sirius on the deal.

Reporting by Jennifer Saba in New York; Editing by Gerald E. McCormick

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