By Michael Dabaie

 

Blank check company Foley Trasimene Acquisition Corp.'s shares were up 6% to $13.55 in morning trading.

Foley Trasimene and Blackstone portfolio company Alight Solutions agreed to a business combination, the companies said Monday. Upon closing of the transaction, the combined company will operate as Alight Inc. and plans to list under the symbol ALIT.

The transaction reflects an implied pro-forma enterprise value for Alight of $7.3 billion. Alight Solutions provides business process as a service solutions such as health administration and payroll administration.

Proceeds from the transaction will be used in part to pay down debt.

The cash component will be funded by Foley Trasimene's cash in trust, $300 million in proceeds from forward purchase agreements with Cannae Holdings Inc. and THL FTAC LLC, an affiliate of Thomas H. Lee Partners LP, as well as a $1.55 billion private placement from various institutional and private investors.

Cannae Holdings it will invest $250 million as part of a private placement. This investment is in addition to Cannae's forward purchase agreement of $150 million, Cannae said.

For its total investment of $405 million in Foley Trasimene and Alight, Cannae will receive 44.6 million shares of Alight common stock and 8 million Alight warrants. Cannae said its implied cost per share is $8.96.

Foley Trasimene Founder and Chairman Bill Foley will become chairman of the board of Alight and Stephan Scholl will continue leading as chief executive.

"Under Blackstone's ownership, Alight's leadership team has transformed the company into a leading provider of integrated digital human capital and business solutions for employees and employers. We look forward to remaining significant shareholders alongside Foley Trasimene for the next stage of Alight's growth," Blackstone Senior Managing Directors Peter Wallace and David Kestnbaum said in prepared remarks.

The $1.55 billion private placement includes the additional $250 million investment from Cannae Holdings Inc. and a $150 million investment from Fidelity National Title Insurance Co., Chicago Title Insurance Co. and Commonwealth Land Title Insurance Co. Other institutional investors include Hedosophia, Suvretta Capital and Third Point LLC.

Existing Alight equity holders, including Blackstone, ADIA, GIC, New Mountain Capital and management, will remain the largest investors in the company.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

January 25, 2021 11:21 ET (16:21 GMT)

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