Metropolis Secures $1.7 Billion to Take Over SP Plus

Metropolis Secures $1.7 Billion to Take Over SP Plus

AI-driven platform Metropolis has secured a staggering $1.7 billion to acquire SP Plus, a key player in parking facility management services. The investment encompasses a blend of equity and debt, setting the stage for an impactful amalgamation in the sector.

Transaction Highlights:

  • Deal Value: $1.7 billion, encompassing $650 million in loans and $1.05 billion in Series C preferred stock financing.
  • Acquirer: Metropolis, a Los Angeles-based innovator in parking solutions, established in 2017 by serial entrepreneur Alex Israel.
  • Target: SP Plus, a reputable publicly traded company, boasting a vast parking infrastructure in the U.S. and Canada.

SP Plus Snapshot:

  • Assets: Over two million parking spaces managed across more than 3,300 facilities, including parking and shuttle operations at 160 airports.
  • Market Reach: A significant footprint in the North American parking management scene.
  • Operational Excellence: High customer satisfaction levels and a solid partnership base with real estate moguls across North America.

Metropolis’s Journey:

Alex Israel, who previously sold ParkMe to Intrix in 2015, envisioned a seamless parking experience which led to the birth of Metropolis. Utilising a computer vision system, Metropolis enables a hassle-free “drive in and drive out” experience for customers, eliminating the traditional payment hassles. With a simple app, customers can review their parking details and get billed automatically post their parking session. After acquiring Premier Parking last year, and now SP Plus, Metropolis extends its operations across 360 cities, serving millions of customers.

Vertical Integration Ascent:

Managing around 600 parking facilities as of June 2022, the acquisitions propel Metropolis towards a vast operational scale. The platform seeks to expand its checkout-free transaction experiences to a myriad of venues, resonating with the modern-day consumer’s demand for convenience and speed. Through strategic partnerships like the recent collaboration with Uber to launch Uber Park, Metropolis is penetrating deeper into the market, enriching the parking experience and offering invaluable insights for operational enhancements.

Transaction Implications:

At $54 per share in cash, the acquisition presents a 52% premium over SP Plus’s closing stock price on October 4. The deal, slated to close in 2024, is anticipated to accelerate the technology roadmap, promising an exciting trajectory for stakeholders involved.

Metropolis’s CEO, Alex Israel, envisions this acquisition as a significant stride towards offering an enriched consumer experience, while SP Plus CEO, Marc Baumann, acknowledges the immediate and substantial value delivered to shareholders. This union is not merely a transaction, but a leap towards a technologically advanced, consumer-centric parking landscape.

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