NEW YORK (Reuters) – Private equity organization Blackstone Team Inc is in talks to merge U.S. added benefits solutions provider Alight Answers LLC with a blank-check acquisition agency backed by veteran investor Invoice Foley, according to individuals familiar with the subject.
The merger with Foley Trasimene Acquisition Corp would outcome in Alight getting a publicly-detailed business at a valuation of more than $8 billion, which include personal debt, the sources said.
The offer talks appear extra than a yr following Blackstone canceled an first public supplying (IPO) of Alight as it was about to increase up to $800 million, amid problems that it would not fetch the phrases it was searching for. A deal with Foley’s blank-test acquisition agency would underscore the expanding level of popularity of these vehicles as an alternate route to the inventory industry.
The sources cautioned that the negotiations may not direct to a offer and requested anonymity due to the fact the subject is private. Blackstone and Alight declined to remark, even though a Foley spokesman did not straight away reply to a ask for for remark.
Foley Trasimene is a so-known as distinctive reason acquisition corporation (SPAC), which lifted $900 million in an IPO in May to merge with a personal business, with out telling traders in advance what that enterprise would be.
Buyout corporations have historically cashed out on their investments by marketing businesses outright or using them general public. The possible deal for Alight highlights how Blackstone sees SPACs as a feasible choice.
Previously this thirty day period, Blackstone and yet another private equity agency, CVC Capital Associates, agreed to merge payments system Paysafe Team Holdings Ltd with another Foley-backed SPAC, Foley Trasimene Acquisition Corp II, in a deal well worth $9 billion, such as financial debt.
Primarily based in Lincolnshire, Illinois, Alight features cloud-based benefits administration and human resources expert services to 30 million men and women in 188 countries, in accordance to its web site.
It was acquired by Blackstone in 2017 from insurance broker Aon Plc, in a offer that valued it at up to $4.8 billion.
Reporting by David French and Mike Spector in New York Modifying by Daniel Wallis