The well-known private equity firm Blackstone Group Inc is in conversation to merge Alight Solutions, a U.S benefits services provider with a blank-check acquisition firm. Alight Solutions more specifically is based in Lincolnshire, Illinois and offers cloud-based benefits administration and human resources services to around 30 million people in 188 countries. According to people familiar with the matter, this acquisition will be backed by veteran investor Bill Foley.
The merger with Foley Trasimene Acquisition Corp will lead Alight firm in becoming a publicly-listed company with a net worth of more than $8 billion, including debt. This deal talks come more than a year after Blackstone cancelled an IPO of Alight as it was about it raise up to $800 million, amid concerns that it would not fetch the terms it was seeking. As per the Economic Times. “A deal with Foley’s blank-check acquisition firm would underscore the growing popularity of these vehicles as an alternative route to the stock market.”
Foley Trasimene is apparently known as a special purpose acquisition company (SPAC) that raised $900 million in an IPO in May 2020 with a private company, without informing its investors in advance on the company actions. The potential deal for Alight highlights how Blackstone sees SPACs as a viable alternative as buyout firms have traditionally cashed out on their investments by either selling companies or taking them public.
“Blackstone and another private equity firm, CVC Capital Partners, agreed to merge payments platform Paysafe Group Holdings Ltd with another Foley-backed SPAC, Foley Trasimene Acquisition Corp II, in a deal worth $9 billion, including debt. “– Economic Times, Dec 2020.