Foley-backed SPAC signs $ 7.3 billion deal with Blackstone’s Alight: sources

(Reuters) – A blank check acquisition firm backed by veteran investor Bill Foley is approaching an agreement to acquire Alight Solutions LLC, the US benefit services provider owned by the acquisition firm Blackstone Group Inc, with a public valuation of $ 7.3 billion including debt, people familiar with the matter, said on Sunday.

The agreement illustrates how Alight became an attractive investment target during the COVID-19 pandemic, capitalizing on the outsourcing of human resources functions by many companies seeking cost savings to preserve capital.

The transaction foresees the merger of Alight with the special purpose acquisition company (SPAC) Foley Trasimene Acquisition Corp, and could be announced as early as Monday, said the sources, who requested anonymity because the negotiations are confidential.

Blackstone declined to comment, while Alight and Foley Trasimene did not respond to requests for comment.

Procurement firms traditionally profit from their investments by selling companies directly or going public. The potential business for Alight underscores how Blackstone sees SPACs as a viable alternative.

Headquartered in Lincolnshire, Illinois, Alight offers cloud-based benefit management and human resources services to companies, including 70% of the Fortune 100 companies, serving 188 countries, according to its website.

It was acquired by Blackstone in 2017 from insurance broker Aon Plc, in a deal that valued it at up to $ 4.8 billion.

Blackstone sought an initial $ 800 million public offering from Alight two years ago, but abandoned the effort amid concerns that it would not reach the terms it sought.

Foley Trasimene raised $ 900 million in an IPO last May to merge with a private company. Like all SPACs, it did not inform investors in advance what this company would be.

The deal will be the second involving Blackstone and Foley SPAC in recent weeks. The private equity firm and its partner CVC Capital Partners announced last month that they would merge Paysafe Group with Foley Trasimene Acquisition Corp II in a transaction that valued the payment processor at $ 9 billion.