Editors Note: A previous version of this story listed Foley Trasimene Acquisition’s stock ticker as BFT. This is the ticker for Foley Trasimene Acquisition II, not Foley Trasimene Acquisition, which is the company that Alight Solutions is merging with. The article has been updated to reflect these changes.
Foley Trasimene Acquisition (NYSE:WPF) stock is getting a boost Monday morning after the special purpose acquisition company (SPAC) announced plans to merge with Alight Solutions.
According to a news release, Alight Solutions and Foley Trasimene Acquisition will combine to create a new company with an enterprise value of $7.3 billion. The new company will do business as Alight, Inc. and shares of WPF stock will change to ALIT stock.
The SPAC merger between the two companies has several sources of funding. That includes what’s held in trust by WPF, $300 million from forwarding purchase agreements from Cannae Holdings, Inc. and THL FTAC LLC, $1.55 billion from a private investment in public equity (PIPE), another $250 million investment from Cannae Holdings, as well as a $150 million investment from Fidelity National Title Insurance Co., Chicago Title Insurance Co., and Commonwealth Land Title Insurance Co.
Foley Trasimene Acquisition and Alight Solutions still need to complete customary closing conditions before the deal is complete. That includes approval from investors in WPF stock and regulators. So long as there are no issues, the merger should close in the second quarter of 2021.
Alight Solutions is a cloud-based company that offers “integrated digital human capital and business solutions.” Its services include optimizing business process as a service (BPaaS) to enhance the capabilities of workers and companies.
Foley Trasimene Acquisition is a blank check company created with the purpose of taking another company public. It’s lead by founder William P. Foley, II, who brings with him 32 years of experience in industry consolidation.
WPF stock was up slightly as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.