Metropolis Technologies completes $1.5bn acquisition of SP Plus Corporation

Metropolis Technologies, Inc., a pioneer in artificial intelligence and computer vision platforms, has successfully completed its acquisition of SP Plus Corporation (“SP+”), North America’s leading parking network provider. This acquisition, valued at approximately $1.5 billion, marks a significant milestone in the AI and mobility service industries, effectively transforming SP+ into a privately held entity under Metropolis’s innovative leadership.

Strategic Integration and Financial Insights

As part of the acquisition, SP+ shareholders received $54.00 per share in cash, which represents a premium of about 52% over the closing stock price as of October 4, 2023. This payout also reflects a 28% premium over the 52-week high price for the same date. Following the closure of this deal, SP+ shares were removed from the Nasdaq Global Select Market, emphasizing the transition to a privately managed organization.

The acquisition was strategically financed through a blend of equity and debt, involving $1.05 billion in Series C preferred stock and $550 million in term debt, supported by Eldridge Industries among other contributors. Additionally, Metropolis secured a $175 million revolving debt facility from PNC Bank, National Association to bolster its financial base for further innovation and expansion.

Executive Perspectives on the Merger

Alex Israel, CEO and Co-Founder of Metropolis, expressed his enthusiasm about the merger: “This isn’t just an acquisition; it’s about our shared vision to forge a legacy of innovation and raise the bar for AI in the real world,” Israel stated. He emphasized the potential of Metropolis’s technology to revolutionize the customer experience across its extensive network, which now includes more than 50 million consumers globally.

Tony Minella, Co-Founder and President of Eldridge Industries, an existing investor and major financier of the transaction, also highlighted the transformative impact of the deal. “Metropolis has developed a new growth buyout model, demonstrating how innovation and technology can evolve legacy industries for the 21st century,” said Minella. He lauded the Metropolis team’s ability to drive significant value to real estate partners while improving daily life through advanced tech solutions.

Legal and Advisory Roles

The transaction saw advisory services from prestigious financial institutions and law firms. Goldman Sachs & Co. LLC and BDT & MSD Partners, LLC served as financial advisors to Metropolis, with Goldman Sachs also acting as the placement agent for the Series C financing. On the legal front, Metropolis was advised by Willkie Farr & Gallagher LLP, Fenwick & West LLP, and Latham & Watkins LLP, while SP+ received counsel from Morgan Stanley & Co LLC and Skadden, Arps, Slate, Meagher & Flom LLP. Eldridge’s legal matters were handled by Sidley Austin LLP, and PNC Bank’s legal advisory was provided by Blank Rome LLP.

Future Outlook for Metropolis and the AI Industry

With the acquisition complete, Metropolis is poised to enhance its AI-driven solutions across multiple real-world applications, from parking and mobility to broader commercial services. The integration of SP+’s extensive network and Metropolis’s cutting-edge technology is expected to set new standards in efficiency and user engagement, promising exciting developments in the AI and service industries.