AI-Powered Parking Platform Metropolis Raises $1.7B to Acquire SP Plus in Game-Changing Deal!
In an exciting turn of events, AI-powered parking platform Metropolis has announced that it has raised a whopping $1.7 billion to acquire SP Plus, a leading provider of parking facility management services. This groundbreaking deal includes a combination of equity and debt, with Eldridge Capital and 3L capital leading the way.
Metropolis plans to pay approximately $1.5 billion for SP Plus, while also taking on $650 million in loans and $1.05 billion in Series C preferred stock financing. This acquisition is set to revolutionize the parking industry and bring checkout-free payment experiences to consumers.
Metropolis, founded by serial entrepreneur Alex Israel, equips existing parking structures with a computer vision system that allows customers to seamlessly drive in and out without the hassle of swiping a credit card or handling cash. The company has already made a name for itself, having powered around 600 parking facilities as of June 2022.
With the acquisition of SP Plus, Metropolis gains access to an established, publicly traded business that manages over 3,300 parking facility locations across the U.S. and Canada, including parking and shuttle bus operations at 160 airports. This means that Metropolis now has operations in more than 360 cities, serving millions of customers and processing over $4 billion in payments annually.
But the excitement doesn’t end there. Metropolis has big plans for the future. While transforming the parking experience remains a priority, the company sees opportunities to offer checkout-free transactions in various other sectors, such as gas and electric vehicle-charging stations, drive-thrus, car washes, and retail stores. The possibilities are endless!
This major deal is a win-win for both Metropolis and SP Plus. Not only does it provide immediate and certain value to SP Plus’ stockholders, but it also offers an exciting path forward for team members, partners, clients, and consumers. With increased investment, the technology roadmap can be accelerated to benefit clients and their customers.
The acquisition, which will see SP Plus go private, represents a 52% premium over its closing stock price on October 4. The deal has already been approved by the boards of both companies and is expected to close in 2024, pending regulatory approvals and the approval of SP Plus’ stockholders.
Now, dear readers, we wonder what you think about this groundbreaking acquisition. Are you excited about the future of parking and checkout-free transactions? Leave a comment below and let us know your thoughts on this game-changing deal!
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