Satellite radio company SiriusXM acquired Automatic Labs, a supplier of telematics services to insurers and consumers, this week.
Automatic works closely with carriers on usage-based insurance programs and teen driver coaching. Its flagship products, Automatic Pro and Automatic Lite, provide users with emergency crash assistance, fuel efficient driving tips, and vehicle location tracking, among other features.
USAA led Automatic’s last funding round in June 2015, valued at $24 million. The San Francisco-based company’s is working with individual investors, including USAA, on building specific applications for their businesses. Liberty Mutual is also a partner of the company.
With the acquisition, SiriusXM is looking to strengthen its stance in the connected-car ecosystem using Automatic’s data collection and analytics tools, it says. SiriusXM currently offers audio entertainment and data services to a number of major automakers. Terms of the deal were not disclosed, but it could be worth more than $100 million, TechCrunch reports.
"Automatic is thrilled to join forces with SiriusXM at such an exciting time for the connected car," said Gary Clayton, Automatic's CEO, in a statement. "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."
SiriusXM’s transaction closed in the second quarter of 2017. Financial Technology Partners served as the financial advisor to Automatic in the deal.