Alight Close to Being Bought Through SPAC Deal Backed by Bill Foley

By Thomas Price Tuesday, January 26, 2021

As 2021’s fiscal year begins in earnest as the holiday season finally winds down, investors are beginning to take stock of companies they will believe will become major business assets in the oncoming year. As the COVID-19 pandemic has continued to force companies to take drastic measures to cut costs where they can, investors have taken particular notice of businesses that can help in that pursuit. Alight is a company that has been of particular interest due to its product of outsourced human resources, cutting costs for companies looking to stay afloat in economic uncertainty. As a result, the company has seen interest from Bill Foley as the two inch closer to a multi-billion dollar partnership in a special purpose acquisition company (SPAC) deal.

Stethoscope and medical clipboard with "benefits" written on the paper.

Alight’s Solutions and Current Status

Alight is a US benefits service provider that is currently owned by the buyout firm Blackstone Group LLC. The company is based in Lincolnshire, Illinois, and is most notable for the benefits and human resources services it provides on its cloud-based platform. This service has become more noteworthy as businesses of all types are looking for places to offload costs. In fact, of the companies in the Fortune 100, Alight provides services for 70% of them. Overall, Alight does business in 188 countries. 

Blackstone Group initially acquired the company in 2017 for $4.8 billion. Since the acquisition, Blackstone Group had planned an $800 million initial public offering (IPO) for the company about two years ago; however, those plans were eventually scrapped over fears that Alight would not reach that lofty goal. This has actually worked out to the benefit of both businesses as the details with Bill Foley’s SPAC deal become solidified.

Alight’s Possible Deal With Bill Foley’s SPAC

Veteran investor Bill Foley is solidifying the details for an acquisition of Alight. While much is still unknown about the deal, Alight currently has a public valuation of $7.3 billion, including debt. The drastic rise of the company’s value over the prior three years has been largely due to the economic downturn associated with the COVID-19 pandemic. With businesses desperately needing to reduce costs, outsourcing benefits and human resources to Alight has become a vastly more important entity for many different corporations. Blackstone Group, Alight, and Bill Foley have yet to comment on any of the details of the SPAC deal, though once confirmed, there are expected statements.

Alight’s business model is a way for large-scale companies to reduce the costs involved with providing benefits and human resources for hundreds if not thousands of employees. The several billion dollars that the business is now publicly worth, including debt, is a major sign of how important outsourced benefits and human resources have become. With Bill Foley’s SPAC deal coming even closer to fruition, Alight’s future looks promising.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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