By David French and Mike Spector
NEW YORK (Reuters) – Non-public fairness agency Blackstone Group (NYSE:) Inc is in talks to merge U.S. advantages companies supplier Alight Options LLC with a blank-check acquisition agency backed by veteran investor Invoice Foley, based on individuals conversant in the matter.
The merger with Foley Trasimene Acquisition Corp would end in Alight turning into a publicly-listed firm at a valuation of greater than $8 billion, together with debt, the sources stated.
The deal talks come greater than a 12 months after Blackstone canceled an preliminary public providing (IPO) of Alight because it was about to boost as much as $800 million, amid issues that it could not fetch the phrases it was looking for. A take care of Foley’s blank-check acquisition agency would underscore the rising reputation of those autos in its place path to the inventory market.
The sources cautioned that the negotiations might not result in a deal and requested anonymity as a result of the matter is confidential. Blackstone and Alight declined to remark, whereas a Foley spokesman didn’t instantly reply to a request for remark.
Foley Trasimene is a so-called particular objective acquisition firm (SPAC), which raised $900 million in an IPO in Might to merge with a personal firm, with out telling traders upfront what that firm could be.
Buyout corporations have historically cashed out on their investments by promoting corporations outright or taking them public. The potential deal for Alight highlights how Blackstone sees SPACs as a viable various.
Earlier this month, Blackstone and one other non-public fairness agency, CVC Capital Companions, agreed to merge funds platform Paysafe Group Holdings Ltd with one other Foley-backed SPAC, Foley Trasimene Acquisition Corp II, in a deal value $9 billion, together with debt.
Based mostly in Lincolnshire, Illinois, Alight gives cloud-based advantages administration and human assets companies to 30 million individuals in 188 nations, based on its web site.
It was acquired by Blackstone in 2017 from insurance coverage dealer Aon (NYSE:) Plc, in a deal that valued it at as much as $4.8 billion.
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