SPAC, backed by Foley, secures $ 7.3 billion deal with Blackstone’s Alight: sources

(Reuters) – A blank check acquiring company backed by seasoned investor Bill Foley is set to close a deal to take over Alight Solutions LLC, the U.S. employee benefits service provider owned by the buyout company Blackstone Group Inc, public at $ 7.3 billion including debt, people familiar with the matter said Sunday.

The deal illustrates how Alight has become an attractive investment target during the COVID-19 pandemic, capitalizing on the outsourcing of human resource functions by many companies that are looking for cost savings to preserve capital.

The deal calls for Alight to merge with Special Purpose Acquisition Company (SPAC) Foley Trasimene Acquisition Corp, and could be announced as early as Monday, said the sources, who requested anonymity because negotiations are confidential.

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

Buyout companies have traditionally cashed in on their investments by selling companies or publishing them. The potential deal for Alight underscores how Blackstone views PSPCs as a viable alternative.

Based in Lincolnshire, Ill., Alight offers cloud-based benefits administration and human resources services to businesses, including 70% of Fortune 100 companies, serving 188 countries, according to its website.

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

Blackstone pursued an initial $ 800 million public offering for Alight two years ago, but abandoned the effort over fears it would not get the terms it sought.

Foley Trasimene raised $ 900 million in an IPO last May to merge with a private company. Like all PSPCs, he didn’t tell investors ahead of time what that company would be.

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