Metropolis Revolutionizes the Parking Industry with $1.7 Billion Acquisition of SP Plus
In a groundbreaking move, AI-powered parking platform Metropolis has secured a staggering $1.7 billion in funding to acquire SP Plus, a leading provider of parking facility management services. This historic deal, financed through a combination of equity and debt, marks a major milestone in Metropolis’ mission to transform the parking experience.
The funding round was co-led by Eldridge Capital and 3L Capital, with participation from esteemed investors such as BDT & MSD Partners’ affiliated credit funds, Vista Credit Partners, Temasek, Slow Ventures, and Assembly Ventures. As part of the financing, Metropolis will take on $650 million in loans and $1.05 billion in Series C preferred stock financing.
With this acquisition, Metropolis will pay approximately $1.5 billion for SP Plus, retaining significant capital on its balance sheet. The move is set to usher in a new era of cutting-edge technology and unparalleled consumer experiences.
Metropolis CEO Alex Israel expressed his excitement about the game-changing acquisition, stating, “Today, we announced a transformational acquisition that represents both a new paradigm in how technology companies grow and a significant step forward in offering consumers a remarkable experience. The combined platform will seek to bring checkout-free payment experiences to consumers.”
Metropolis, founded in 2017 by serial entrepreneur Alex Israel, revolutionizes traditional parking structures by equipping them with a state-of-the-art computer vision system. This innovative technology allows customers to effortlessly enter and exit parking facilities without the need for credit card swipes or cash payments.
To use Metropolis parking facilities, customers simply provide their name, license plate, phone number, and payment method through an intuitive app. They can then track their visit and receive real-time pricing information. Metropolis automates the entire process, tracking vehicles and automatically charging owners, with receipts conveniently emailed after they leave.
With the acquisition of SP Plus, Metropolis gains access to a well-established, publicly traded business that boasts an extensive parking footprint across the United States and Canada. SP Plus owns over two million parking spaces and manages more than 3,300 parking facility locations, including operations at 160 airports.
This strategic move represents another step toward vertical integration for Metropolis, which now operates in more than 360 cities, serving millions of customers and processing over $4 billion in payments annually.
Israel emphasized the company’s commitment to revolutionizing not only parking but also a wide range of transaction experiences. He stated, “While transforming the parking experience is our focus and priority today, as we deploy our proven technology, we see an opportunity to offer checkout-free transaction experiences at even more places people go.”
In recent years, Metropolis has expanded its investment in analytics, sales, and marketing, recognizing the vast potential of its platform. The company leverages insights from its technology to optimize staffing, pricing, and maintenance at parking facilities. Additionally, it partners with local businesses, including grocery stores and coffee shops, to provide customers with enticing in-app promotions.
The acquisition of SP Plus comes in the form of a cash offer at $54 per share, representing a remarkable 52% premium over SP Plus’ closing stock price on October 4. The transaction, set to take SP Plus private, has already received unanimous approval from the boards of directors of both Metropolis and SP Plus. The deal is expected to be finalized in 2024, pending customary closing conditions, regulatory approvals, and the approval of SP Plus’ stockholders.
While the exact number of SP Plus team members joining Metropolis remains uncertain, this acquisition promises to offer an exciting path forward for everyone involved. Together, Metropolis and SP Plus are poised to redefine the parking industry and create immersive experiences that seamlessly blend technology with convenience.
Sources:
– TechCrunch: AI-powered parking platform Metropolis raises $1.7B to acquire SP Plus
