Business

Metropolis Becomes North America's Largest Parking Network Operator Through SP Plus Corporation Acquisition

LOS ANGELES, May 16, 2024 – Metropolis Technologies, Inc., a cutting-edge artificial intelligence firm, today marked a significant milestone in its expanding corporate journey by completing the acquisition of SP Plus Corporation, a premier operator of parking networks providing mobility services across various sectors in North America. This move consolidates Metropolis's position as the dominant player in parking network operations, boasting a vast workforce of over 20,000 employees and more than 4,000 locations.

The historical acquisition not only enlarges Metropolis’s operational footprint but also embraces the potential of deploying innovative AI technology to a staggering consumer base of over 50 million, while managing upwards of $4 billion in annual payment processing.

Unprecedented Union of Market Leaders

Metropolis's CEO and Co-Founder, Alex Israel, lauded the acquisition as "a once-in-a-generation opportunity" to align two frontrunners in their respective fields under one visionary entity. With an ambition to establish a legacy that speaks to innovation, Israel projected a future where Metropolis would ignite a paradigm shift in real-world AI applications. The focus remains on revolutionizing the parking experience, offering consumers a seamless, frictionless checkout process that rivals even the speed and convenience of online transactions. Israel affirmed that the integration would fuel limitless growth prospects for the company.

Financing Innovation

The financing architect behind the substantial transaction, Tony Minella, the Co-Founder and President of Eldridge Industries, highlighted the strategic approach that Metropolis adopted to revitalize traditional industries through technological ingenuity. Backed by a robust consortium of investors, Minella emphasized that Metropolis is well-positioned to inject operational efficiency and add substantial value to its real estate partnerships.

Upon the closure of this deal, SP Plus's near 20,000-person team officially became part of Metropolis. The completion of the transaction also led to the cessation of SP+ shares trading on the Nasdaq Global Select Market, signifying the dawn of a new chapter as Metropolis transitions into a private, founder-led enterprise destined to redefine transactional experiences through AI innovation.

A Lucrative Closure for SP+ Shareholders

The merger's fruition granted SP+ stockholders a lucrative exit at $54.00 per share, materializing a significant premium over both the closing stock price of October 4, 2023, and the 52-week high recorded on the same date. This substantial payoff echoes the assertiveness and strategic potency behind Metropolis’s take-private initiative.

Strategic Partnerships and Financial Backing

Fueling Metropolis's ambitious acquisition were critical financial maneuvers including a formidable $1.05 billion in Series C preferred stock financing and a sizable $550 million of term debt financing. These strategic financial contributions were orchestrated by Eldridge Industries along with various institutional partners. Additionally, a $175 million revolving debt facility from PNC Bank, National Association reinforced the company's capital structure. This arrangement sets the stage for Metropolis's envisioned growth, encapsulating an enterprise value of approximately $1.5 billion for SP+.

A Cohort of Elite Financial and Legal Advisory

Metropolis's formidable move was supported by a constellation of financial and legal elites. Esteemed firms such as Goldman Sachs & Co. LLC and BDT & MSD Partners, LLC provided financial advisory; Willkie Farr & Gallagher LLP, Fenwick & West LLP, and Latham & Watkins LLP offered legal counsel. Morgan Stanley & Co LLC and Skadden, Arps, Slate, Meagher & Flom LLP furnished advisory services to SP+, while Sidley Austin LLP and Blank Rome LLP advised Eldridge and PNC Bank, National Association, respectively. This assembly of top-tier advisors underscores the strategic sophistication and diligent execution of the transaction.

Metropolis Technologies: Reinventing Real-World Payments

Metropolis approaches the market as an innovative force determined to redefine checkout and payment experiences. By fusing AI and computer vision technologies, the company has built a platform that simplifies transactions and enhances customer experience, all while delivering cost savings and augmenting earnings for its partners. Following this strategic acquisition, Metropolis's stature has soared, positioning it as the preeminent parking network in North America.

For more information, those interested can visit www.metropolis.io.

Eldridge Industries: The Investment Vanguard

Eldridge Industries, with its savvy investment strategies, steers a diversified business portfolio. Headquartered in Greenwich, Connecticut, and with an international presence, the firm is dedicated to fostering business leaders and scaling enterprises across sectors including Technology, Finance, Mobility, Sports, Media, Real Estate, and Consumer domains. By investing in Metropolis, Eldridge has once again proven its commitment to transformative leadership in business.

For further insights into Eldridge Industries, please explore www.eldridge.com.

3L: Championing Emerging Growth

3L stands as an emblem of support for startup dynamos, particularly in the realms of Commerce, Enterprise Software, and Tech-driven Services. The firm extends a nurturing hand to innovative leaders, offering funding and consultative insights that help carve paths to market supremacy. Primed in Los Angeles and New York City, 3L's endorsement of Metropolis underscores the firm’s agenda of marrying strong organic growth with proficient mergers and acquisitions.

Delve into 3L's strategy at www.3lcap.com.

SP Plus: The Mobility Maestros

In SP Plus, Metropolis inherits a legacy of state-of-the-art technology and superb operational management. Renowned for its capacity to address critical mobility needs with agility and reliability, SP Plus has cemented its stature across North America and Europe. The company's devotion to effectual solutions resonates strongly with Metropolis's customer-centric ethos, promising even more innovative breakthroughs in a world that is constantly in motion.

Discover more about SP Plus at www.spplus.com.

In conclusion, Metropolis Technologies' acquisition of SP Plus Corporation stands as a testament to the transformative power of technology and strategic investment in legacy industries. This synthesis of expertise and innovation promises to propel the combined entity to new heights of efficiency and customer service excellence in the parking network realm and beyond.

By unitizing the vigor of artificial intelligence and vision-driven technology, Metropolis is well on its way to crafting an unparalleled consumer experience and advancing the horizons of real-world applications of AI. In the wake of this monumental acquisition, the future appears bright, beckoning an era marked by a shared vision—an era where a bold fusion of technology and strategic partnerships leads the charge in redefining the landscape of mobility and payment solutions.

The integration of such formidable companies under the Metropolis banner heralds a fresh epoch of growth, flexibility, and innovation. As society sails forth into an increasingly digitized world, where convenience and automation become fundamental expectations, Metropolis and SP Plus stand united, ready to deliver their joint legacy of pioneering the frontier of AI in everyday life.

With the financial acumen of Eldridge Industries, the seasoned strategies of 3L, and the comprehensive expertise of SP Plus, Metropolis harnesses the full spectrum of resources necessary to achieve its ambitious endeavors. This collective synergy is poised to break existing boundaries and reimagine the possibilities for technology, mobility, and service in the 21st century.

Shareholders, customers, employees, and partners of both entities are now part of a broader narrative, one that encapsulates aspiration, technological mastery, and the relentless pursuit of growth and excellence. Together, they will witness the birth of novel breakthroughs, shaping the future of commerce and movement across North America and extending a global influence that underlines the centrality of AI in our modern era.

The unfolding chapters of this union will be keenly observed by industry onlookers and market competitors alike. As Metropolis integrates SP Plus's operational framework, attention will focus on the efficacy of this integration, the delivery on the promise of AI, and the subsequent impact on consumers' lives and the broader mobility service landscape.

As the company stands on the brink of this new journey, one thing is certain: Metropolis Technologies is not just engineering automated payment systems; it is curating the future of human interaction with space and service, navigating a path that will set precedence for innovation and customer-centric design. With a foundation firmly rooted in cutting-edge technology and visionary ambition, the beacon that is Metropolis now shines ever brighter, illuminating the route towards a fully integrated, AI-powered world for all to follow.

Amidst the backdrop of expansive urban landscapes and the ever-accelerating pace of life, Metropolis and SP Plus champion the cause of efficiency and ease. The road ahead is paved with the promise of less time spent in queues and more time enjoying life's valuable moments. This is the era of appreciating speed, not as a luxury, but as a standard—a standard that Metropolis and SP Plus are ardently committed to providing.

With a deep-seated belief in the power of technology to transform lives—and an unwavering dedication to their shared mission—Metropolis stands ready to embark on its next phase, driven by a boundless vision and an indefatigable drive to shape the future. In a world that's ever-changing, Metropolis Technologies continues to drive change and challenge the status quo, ensuring that every transaction and every experience is not just efficient and seamless but simply extraordinary.

SOURCE Metropolis

Bringing an end to our comprehensive coverage of Metropolis's strategic acquisition of SP Plus Corporation, we sign off, anticipating the innovations and impactful experiences to emerge from this pivotal merger. As the metropolis of the future unfolds, keep an eye on the evolution of the parking network and the ripple effects within the mobility service industry. This is not merely a transaction; it's the commencement of a journey into an AI-enhanced future, marking a milestone in the narrative of Metropolis Technologies—and indeed, in the annals of technological progress and innovation.