Metropolis, the AI-powered parking platform, has announced that it raised $1.7 billion in a funding round to facilitate the acquisition of SP Plus, a leading provider of parking facility management services. This transformative deal will be a combination of equity and debt, strengthening Metropolis’ position in the parking industry.
Key Takeaway
Metropolis has raised
.7 billion to acquire SP Plus, a leading provider of parking facility management services. The acquisition will enhance Metropolis’ market presence and enable the company to offer checkout-free payment experiences to consumers. With its computer vision system, Metropolis aims to revolutionize the parking industry by providing a seamless and convenient parking experience for customers.
Investment Details
Eldridge Capital and 3L Capital co-led the funding round, with participation from BDT & MSD Partners’ affiliated credit funds, Vista Credit Partners, Temasek, Slow Ventures, and Assembly Ventures. The financing structure includes $650 million in loans and $1.05 billion in Series C preferred stock financing.
Metropolis plans to acquire SP Plus for approximately $1.5 billion. Commenting on the acquisition, Metropolis co-founder and CEO Alex Israel stated, “SP Plus 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.”
Metropolis’ Innovative Parking Solutions
Metropolis, founded in 2017, offers an innovative parking solution by equipping existing parking structures with a computer vision system. The technology enables customers to enter and exit the parking facility without the need to swipe a credit card or pay with cash. Instead, customers provide their name, license plate, phone number, and payment method through the Metropolis mobile app. The system tracks vehicles and automatically charges the owners, providing a seamless and convenient parking experience.
Expansion and Integration
With the acquisition of SP Plus, Metropolis gains access to a vast parking footprint across the U.S. and Canada. SP Plus currently manages over 3,300 parking facility locations and owns more than two million parking spaces. This acquisition is a significant step towards vertical integration for Metropolis, which already powers approximately 600 parking facilities. Including its acquisition of Premier Parking in 2021, Metropolis now operates in more than 360 cities, serving millions of customers and processing over $4 billion in payments annually.
Future Opportunities
While focusing on transforming the parking experience, Metropolis sees further opportunities to implement its technology in various industries. By leveraging its computer vision platform, the company aims to offer checkout-free transaction experiences in gas and electric vehicle-charging stations, drive-thrus, car washes, and retail stores. The goal is to enhance the ease of conducting physical transactions, surpassing the convenience of online experiences.
Conclusion
Metropolis’ successful fundraise of $1.7 billion emphasizes its commitment to expanding its presence in the parking industry. With the acquisition of SP Plus, the company solidifies its position as an industry leader and aims to provide consumers with seamless and convenient parking experiences. This strategic move lays the foundation for further innovation and growth in the future.
