(Reuters) – A non-check procurement firm backed by veteran investor Bill Foley is nearing an agreement to release Alight Solutions LLC, a US benefit provider owned by Blackstone Group Inc., in a bid. $ 7.3 billion familiar with the issue on Sunday.
The agreement illustrates how Alight became an attractive investment target during the COVID-19 pandemic, capitalizing on the outsourcing of human resources functions by many companies looking for cost savings to keep capital.
The transaction requires Alight to merge with Special Purchasing Company (SPAC) Foley Trasimene Acquisition Corp and could be announced immediately on Monday, sources said, requesting anonymity because the negotiations are confidential.
Blackstone declined to comment, while Alight and Foley Trasimene did not respond to requests for comment.
Buying companies have traditionally cashed in on their investments by selling companies directly or making them public. The potential deal for Alight underscores how Blackstone sees SPACs as a viable alternative.
Headquartered in Lincolnshire, Illinois, Alight provides cloud-based benefits management and human resource services to businesses, including 70% of Fortune 100, 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 up to $ 4.8 billion.
Blackstone pursued an initial $ 800 million public offering from Alight two years ago, but abandoned the effort out of concern that it would not bring the terms it was looking for.
Foley Trasimene raised $ 900 million in an IPO in May to merge with a private company. Like all SPACs, he did not tell investors in advance what that company would be.
The deal will be the second involving Blackstone and a Foley SPAC in recent weeks. Private equity firm and its partners CVC Capital Partners announced last month that they would merge Paysafe Group with Foley Trasimene Acquisition Corp II in a transaction that valued the payment processor at $ 9 billion.
David French’s report to New York; Edited by Matthew Lewis