Metropolis, the AI-driven parking sensation, has made waves with its recent announcement. They’ve secured a massive $1.7 billion to acquire SP Plus, a significant player in parking facility management. This move is set to redefine the parking experience for millions across North America.
➜ A Groundbreaking Acquisition
Metropolis announced its acquisition of SP Plus, funded through equity and debt. This deal sees participation from big names like Eldridge Capital, 3L Capital, and others. With this, Metropolis is set to take on $650 million in loans and a whopping $1.05 billion in Series C preferred stock financing.
➜ The Vision Behind the Move
“Today’s announcement marks a pivotal moment in the tech world. SP Plus’s operational brilliance combined with our tech will redefine the consumer experience,” says Metropolis co-founder and CEO Alex Israel. He emphasizes the goal of introducing checkout-free payment experiences for consumers.
➜ Metropolis’s Innovative Approach
Founded in 2017 by Alex Israel, Metropolis transforms parking structures with its computer vision system. This allows customers to seamlessly enter and exit without the hassle of traditional payment methods. The integration with SP Plus is expected to amplify this experience across the U.S. and Canada.
➜ Expanding Horizons
With this acquisition, Metropolis is not just stopping at parking. Israel hints at expanding technology to gas stations, EV charging points, and retail stores. The idea? Making real-world transactions as smooth as online ones.
➜ A Win-Win for Both
SP Plus’s CEO, Marc Baumann, sees this as a golden opportunity. He believes that with increased investment, they can fast-track their technology offerings, benefiting clients and consumers alike.
“This transaction delivers immediate and certain value to our stockholders at a substantial premium to current and historical trading levels,” says Marc Baumann, SP Plus chairman and CEO.
➜ What’s Next?
The acquisition is expected to be finalized in 2024, subject to approvals and customary closing conditions. As for the workforce integration post-acquisition, details remain under wraps. Subscribe to our newsletter neuralWit.