What happened
Investors gave Sp Plus (SP +0.00%) stock quite the send-off on Thursday. On news that the company is being taken private, they sent its share price nearly 45% higher -- and this on a day when the S&P 500 index slumped by 0.1%.
So what
Before market open, Sp Plus and privately held Metropolis Technologies announced the transaction in a joint press release. Under the terms of their agreement, Metropolis will pay $54 per share to acquire Sp Plus. That price represents a steep 52% premium to the latter's company's closing level on Thursday.
The sale, which is worth a total of around $1.5 billion in enterprise value, will be effected entirely in cash. Metropolis has secured $1.7 billion in financing to fund it.
Sp, once known as Standard Parking, is a provider of a range of transportation and facility management services. Its owner-to-be specializes in next-generation parking payment technology. Metropolis quoted its co-founder and CEO Alex Israel as saying that the Sp Plus buy "represents both a new paradigm in how technology companies grow and a significant step forward in offering consumers a remarkable experience."
NASDAQ: SP
Key Data Points
Now what
Israel added that "While transforming the parking experience is our focus and priority today, as we deploy our proven technology we see opportunity to offer checkout-free transaction experiences at even more places people go." Owning Sp Plus will theoretically help provide this reach.
The transaction is anticipated to close at some point in 2024; Metropolis and Sp Plus did not get more specific. It has been unanimously approved by the boards of directors of both companies.
