Metropolis, AI powered parking company, just got a big boost!
They raised a whopping $1.7 billion to acqire SP Plus, a company that manages parking spaces. This money comes from a mix of investments and loans.
The funding was led by Eldridge Capital and 3L Capital, with others joining in. Metropolis will get $650 million in loans and $1.05 billion from Series C preferred stock financing.
The CEO, Alex Israel, says they’ll spend about $1.5 billion on SP Plus, but they’ll still have plenty of money in their pocket.
They upgrade regular parking lots with smart AI technology so you can come and go without swiping a card or using cash.
To use their service, you just need to give your name, license plate, phone number, and payment info. You can track your visit and know the cost in real-time through their app. They even send you the bill after you leave.
By joining forces with SP Plus, Metropolis gains a big business with lots of parking spaces across the U.S. and Canada.
SP Plus handles over two million parking spots and runs more than 3,300 parking areas, along with services at 160 airports.
Metropolis is growing fast. They started with about 600 parking spots in June 2022. After buying Premier Parking and now SP Plus, they’re in over 360 cities, with millions of customers making over $4 billion in payments each year.
They’re not stopping at parking lots either. They want to make more places cashless, like gas stations, drive-thrus, and shops. Their tech helps people do transactions in the real world as easily as they do online.
Recently, they’ve been focusing on improving their analytics, sales, and marketing. They’re teaming up with big names like Uber and local businesses to give you deals and insights.
The deal to buy SP Plus is a big deal for both companies. Metropolis is paying $54 for each share, which is a lot more than the current stock price. Both boards have agreed, and if all goes well, the deal should be done in 2024.
We’re not sure how many of SP Plus’ 20,000 employees will join Metropolis’ team of 2,000 after the deal. It’s an exciting move for both companies!