Blank Check Co. Foley Trasimene Up 6% on Deal With Alight Solutions
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
Proceeds from the transaction will be used in part to pay down
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 firstname.lastname@example.org
(END) Dow Jones Newswires
January 25, 2021 11:21 ET (16:21 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.