US-based Metropolis Technologies has agreed to acquire SP Plus (SP+), a technology and operations management provider of mobility services, in a deal worth around $1.5bn.
According to the terms of the transaction, stockholders of the Nasdaq-listed SP Plus will receive $54 per share in cash.
The cash consideration represents about 52% premium to SP Plus’ closing stock price on 4 October 2023.
To complete the deal, Metropolis Technologies has secured commitments for equity and debt financing totaling $1.7bn. It comprises $1.05bn in Series C preferred stock financing and $650m debt financing.
Eldridge and Metropolis Technologies’ existing investor 3L Capital led the financing commitments along with new investors including BDT & MSD Partners’ affiliated credit funds, Temasek, and Vista Credit Partners.
The financing commitments also have participation from the firm’s other existing investors, namely Slow Ventures and Assembly Ventures.
SP Plus develops and integrates technology with operations management and support to offer mobility solutions for aviation, commercial, hospitality, and institutional clients throughout North America and Europe.
Following the closing of the acquisition, SP Plus’ common stock shares will no longer be traded publicly.
SP Plus CEO and chairman Marc Baumann said: “Combining with Metropolis will advance the pace of technology deployment, which will allow us to do more for existing clients and add new ones as we provide additional high-quality, cutting-edge client and consumer experiences.”
Through the acquisition of SP Plus, Metropolis Technologies aims to bring new capabilities to its North America’s network and offer clients further opportunities to improve the consumer experience and enhance efficiencies.
Founded in 2017, Metropolis Technologies creates and implements computer vision technology that offers checkout-free payment experiences for consumers.
Metropolis Technologies co-founder and CEO Alex Israel said: “SP+ is a phenomenal business whose operational excellence, talented leadership team and high customer satisfaction levels have long made it a key partner to real estate owners across North America.
“The combined platform will seek to bring checkout-free payment experiences to consumers.”
Subject to receipt of SP Plus’ stockholders’ and regulatory approvals along with customary conditions, the deal is anticipated to close in 2024.
