By David French and Mike Spector
NEW YORK (Reuters) – Non-public fairness agency Blackstone Group 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, in response to folks acquainted with the matter.
The merger with Foley Trasimene Acquisition Corp would lead to Alight changing into a publicly-listed firm at a valuation of greater than $eight billion, together with debt, the sources mentioned.
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 searching for. A cope with Foley’s blank-check acquisition agency would underscore the rising reputation of those autos instead 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 goal acquisition firm (SPAC), which raised $900 million in an IPO in Could to merge with a personal firm, with out telling traders prematurely what that firm could be.
Buyout companies have historically cashed out on their investments by promoting firms outright or taking them public. The potential deal for Alight highlights how Blackstone sees SPACs as a viable different.
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.
Primarily based in Lincolnshire, Illinois, Alight provides cloud-based advantages administration and human assets companies to 30 million folks in 188 international locations, in response to its web site.
It was acquired by Blackstone in 2017 from insurance coverage dealer Aon Plc, in a deal that valued it at as much as $4.eight billion.
(Reporting by David French and Mike Spector in New York; Modifying by Daniel Wallis)
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