What happened
Investors gave Sp Plus (SP 0.29%) 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."
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.
