Metropolis, an AI-powered parking platform, has raised a staggering $1.7 billion to acquire SP Plus, a provider of parking facility management services. This acquisition is set to revolutionize the way consumers experience parking, bringing checkout-free payments to the forefront. Metropolis already equips existing parking structures with a computer vision system, allowing customers to drive in and out without the hassle of swiping a credit card or paying with cash.
The deal will see Metropolis pay approximately $1.5 billion for SP Plus, while retaining significant capital on its balance sheet. Prior to this fundraising, Metropolis had already raised $226 million. The company aims to offer consumers a remarkable experience by combining its technology with SP Plus’ operational excellence and high customer satisfaction levels.
SP Plus is an established business with a massive parking footprint across the US and Canada. It owns over two million parking spaces and manages over 3,300 parking facility locations, as well as parking and shuttle bus operations at 160 airports. This acquisition will further enhance Metropolis’ vertical integration strategy, as it already operates in over 360 cities and processes over $4 billion in payments annually.
Metropolis plans to deploy its proven technology to offer checkout-free transaction experiences in various physical environments, such as gas and electric vehicle-charging stations, drive-thrus, car washes, and retail stores. The company aims to provide people with greater ease in conducting transactions in the physical world.
The transaction, which is expected to close in 2024, will take SP Plus private. It represents a 52% premium over SP Plus’ closing stock price on October 4. The boards of directors of both companies have unanimously approved the deal. While the exact number of SP Plus employees who will join Metropolis’ workforce is unclear, it is expected to bring exciting opportunities for team members, partners, clients, and consumers in the US and abroad.
This acquisition marks a significant milestone for Metropolis and its mission to transform the parking industry. The company continues to invest in analytics, sales, and marketing to capitalize on the large addressable market. By leveraging insights from its platform, Metropolis can inform staffing, pricing, and maintenance at parking facilities and collaborates with local businesses for in-app promotions.
What do you think about Metropolis’ acquisition of SP Plus? Will it truly revolutionize the parking experience? Share your thoughts in the comments below and let us know what other technology-driven services you’d like to see in the physical world!
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