(Reuters) – A blank checks business backed by veteran investor Bill Foley is approaching an agreement to take Alight Solutions LLC, the US benefits service provider owned by buyout firm Blackstone Group Inc, up for valuation of $ 7.3 billion, including debt familiar with the case said Sunday.
The deal illustrates how Alight became an attractive investment target during the COVID-19 pandemic, which exploits the outsourcing of human resource functions by many companies seeking cost savings to conserve capital.
The deal requires Alight to merge with Foley Trasimene Acquisition Corp, special procurement company (SPAC), and it could be announced as early as Monday, say 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.
Buy-out companies have traditionally paid off their investments by selling companies directly or making them public. The potential agreement for Alight highlights how Blackstone views SPACs as a viable alternative.
Based in Lincolnshire, Illinois, Alight offers cloud-based benefits administration and human resource services to businesses, including 70% of the Fortune 100, which serves 188 countries, according to its website.
It was acquired in 2017 by Blackon from insurance broker Aon Plc, in a deal valued at $ 4.8 billion.
Blackstone pursued an initial $ 800 million public offering from Alight two years ago, but abandoned the attempt amid concerns that he would not get the terms he wanted.
Foley Trasimene raised $ 900 million in a stock exchange in May last year to merge with a private company. Like all SPACs, it did not tell investors in advance what the company would be.
The deal will be the second for 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 $ 9 billion valuation transaction.
Reporting by David French in New York; Edited by Matthew Lewis