Metropolis Technologies, Inc. Set to Acquire SP Plus Corporation for $1.5 Billion

Metropolis Technologies, Inc. and SP Plus Corporation (SP+) have announced a definitive agreement for Metropolis to acquire SP+ for $1.5 billion. This acquisition will bring together their respective expertise in technology and operations management to enhance the consumer experience and drive innovation in the industry.

Metropolis Technologies, founded in 2017, specializes in computer vision technology that enables checkout-free payment experiences. Their platform has been deployed in managed parking facilities across major U.S. cities, allowing consumers to conveniently drive in and out without the need to stop and pay. This technology not only improves the consumer experience but also increases revenue and reduces costs for real estate owners.

On the other hand, SP+ is a leading provider of technology and operations management services for mobility solutions. With over 20,000 team members managing parking spaces and providing services at commercial locations and airports, SP+ has a strong track record of delivering innovative solutions and superior service to its clients.

The acquisition of SP+ by Metropolis will expand the reach of their checkout-free payment experiences across North America's leading network, serving millions of consumers and processing over $4 billion in payments annually. This presents new opportunities for property owners and managers to capture value and improve efficiency.

Alex Israel, Co-founder and CEO of Metropolis, expressed excitement about the 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."

Marc Baumann, Chairman and CEO of SP+, also highlighted the benefits of the transaction, stating, "This transaction delivers immediate and certain value to our stockholders at a substantial premium. Combining with Metropolis will advance the pace of technology deployment, allowing us to do more for existing clients and add new ones as we provide additional high-quality, cutting-edge experiences."

The acquisition is expected to close in 2024, subject to regulatory approvals and the approval of SP+ stockholders. Upon completion, SP+ will no longer trade publicly, and Metropolis will continue to be founder-led and controlled as a private company.

To finance the acquisition, Metropolis has obtained commitments for $1.7 billion in equity and debt financing. The financing commitments are led by Eldridge, along with existing investor 3L Capital and other new investors. These funds will be used to complete the transaction and provide capital for future growth.

Goldman Sachs & Co. LLC and BDT & MSD Partners, LLC are acting as financial advisors to Metropolis, while Morgan Stanley & Co. LLC is advising SP+. Willkie Farr & Gallagher LLP and Fenwick & West LLP are serving as legal advisors to Metropolis, and Skadden, Arps, Slate, Meagher & Flom LLP is advising SP+.

About Metropolis:

Metropolis is an artificial intelligence company that develops computer vision technology to enable seamless transactions in the physical world. Their current focus is on transforming the parking experience, but they envision expanding their checkout-free technology to various other locations, including gas stations, drive-thrus, car washes, and retail stores.

About SP+:

SP+ is a leading provider of technology and operations management services for mobility solutions. With a strong presence in North America and Europe, they offer solutions that facilitate the efficient movement of people and vehicles. SP+ is committed to making every moment matter for a world on the go.

About Eldridge:

Eldridge is an investment firm that supports and grows businesses across various industries, including insurance, asset management, technology, mobility, sports, gaming, media, music, real estate, and consumer landscapes. They focus on partnering with proven management teams to scale enterprises and achieve leadership positions in their respective industries.

About 3L:

3L is a private equity firm that invests in emerging growth companies, particularly in the commerce, enterprise software, and tech-enabled services sectors. They provide capital and support to help management teams become category leaders and drive organic growth.

In conclusion, the acquisition of SP+ by Metropolis Technologies represents a significant milestone for both companies. By combining their expertise, they aim to enhance the consumer experience and drive innovation in the industry. This transaction will create new opportunities for property owners and managers while delivering immediate value to SP+ stockholders. With the necessary financing in place, Metropolis is well-positioned to complete the acquisition and continue its growth trajectory.