Metropolis Technologies Inc, an AI-powered parking app, has revealed plans to buy out SP Plus.
Here’s a breakdown of the exciting details:
- The Big Deal: Metropolis is set to acquire SP Plus for $1.5B (including debt). SP Plus shareholders can anticipate a payout of $54 per share, a hefty 52.5% premium on the stock’s closing price on Wednesday.
- Stock Market Movement: The announcement pushed SP Plus’ share price up by 45% to $51.5. Who knew parking could be a market mover?
- Funding Breakdown: Metropolis intends to cover this substantial expense through a strong combination of $1.7B in equity and debt financing. This comprises a $1.05B contribution from a Series C funding round, supplemented by debt financing.
- Expansion Strategy: Metropolis CEO, Alex Israel, eyes this acquisition as an opportunity to broaden their footprint across North America. It’s a strategic move considering SP Plus operates in over 360 markets and processes upwards of $4B in payments yearly.
- Investor Sentiment: Investors are on board with this move. Funding efforts were supported by existing investors like Eldridge and 3L Capital, and new ones including funds affiliated with BDT & MSD Partners, Vista Credit Partners, and Temasek.
- Deal Timeline: The deal is expected to close in 2024, subject to regulatory approvals. SP Plus will subsequently go private while continuing to offer its extensive services.
Metropolis’ AI-powered tech aims to simplify parking. The company, founded in 2017 by Israel, Travis Kell, Peter Fisher, and Courtney Fukuda, is invested in transforming the parking experience.
Goldman Sachs and BDT & MSD Partners are advising Metropolis, with Morgan Stanley guiding SP Plus.
