SiriusXM has acquired Automatic, the maker of the Automatic Pro and Automatic Lite connected car OBD-II port accessories. The deal is acknowledged by SiriusXM CFO David Frear to be worth a little north of $100 million, and SiriusXM and Automatic both note in releases announcing the news that the brand will remain separate, and Automatic’s products and team will remain focused on the same mission. For Automatic users, the change won’t provide any disruption to their device use, Automatic says.
The acquisition of Automatic adds to SiriusXM’s connected car product offerings, and means that the company remains more relevant in a world where users are increasingly relying on smartphone-based media services for in-car entertainment.
SiriusXM emphasized the opportunity represented in the growing market of driving data, which is a business that automakers and the surrounding industry is increasingly trying to leverage into new revenue opportunities. Automatic has already been forming partnership with insurance providers, for instance, which value the driving data it collects and will offer subsidies to policy holders who use the device. SiriusXM has recently been exploring more of this market, with a new focus on safety products, turn-by-turn navigation and more connected car services.