MELBOURNE: Smart Parking Limited (ASX:SPZ), a global leader in parking technology, announced on Monday its entry into the U.S. market with the acquisition of Peak Parking LP, a boutique parking operator based in Texas. The deal, valued at up to $36 million, marks a significant step in Smart Parking’s geographic expansion strategy.
The acquisition will be funded through a fully underwritten equity raising of approximately A$45 million (about $29.5 million) and an expansion of Smart Parking’s debt facility. The equity raising includes a A$32.2 million institutional placement and a A$12.8 million entitlement offer, both fully underwritten by Canaccord Genuity.
Peak Parking, founded in 2016, operates 134 parking locations across six U.S. states, offering services such as parking garage management, valet parking, and special events parking. The company has shown strong growth, with revenue increasing at a compound annual growth rate of 45% from 2022 to 2024, reaching $9.1 million in 2024.
Under the terms of the agreement, Smart Parking will pay $32 million upfront, consisting of $26 million in cash and $6 million in Smart Parking shares. An additional earnout payment of up to $4 million in shares is contingent on Peak Parking achieving a 2025 EBITDA of $4.5 million.
Smart Parking CEO Paul Gillespie expressed enthusiasm about the acquisition, stating, “We are delighted to announce the acquisition of Texas-based Peak Parking, a strategic move that broadens our global operations into the U.S., the largest parking operations market in the world.”
The acquisition is expected to be earnings accretive, with Smart Parking forecasting more than a 25% increase in earnings per share for the 2025 fiscal year. The deal is also expected to provide opportunities for revenue and margin expansion through the implementation of Smart Parking’s proprietary technology platform.
The transaction is subject to certain conditions and is expected to be completed in March 2025. Smart Parking’s shares will remain in a trading halt pending the completion of the equity raising.
Smart Parking, listed on the Australian Securities Exchange since 2011, operates in multiple countries, including Australia, New Zealand, Germany, Denmark, and the UK. The company specializes in smart parking solutions using its proprietary Smart Cloud technology and Automatic Number Plate Recognition systems.