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Blackstone weighing IPO of Alight: Reuters
Posted on Thursday, 06 December 2018 13:58
Blackstone is considering listing its healthcare and retirement benefits business Alight Solutions, that could value the US-based group at over USD 7.00 billion, including debt, Reuters reported.
Citing people close to the situation, the news provider observed that an initial public offering could fetch between USD 500.00 million and USD 750.00 million.
Four sources said the flotation is due in the first half of 2019; however, another insider noted that at this time, it is not clear when the listing will take place, adding it would be dependent on market conditions.
Alight offers a range of benefits administration and cloud-based human resources services to about 22.00 million worldwide.
The company has been owned by Blackstone since 2017 when the private equity firm acquired Aon Hewitt’s employee benefits administration business for USD 4.80 billion. Aon had held the business since its 2010 purchase of Hewitt Associates for USD 4.90 billion.
According to Reuters’ sources, the private equity firm has appointed Bank of America, JPMorgan and Morgan Stanley to underwrite the potential IPO.
Blackstone is also said to be open to acquisition offers for Alight; however, it currently has its eyes on going public.
Alight has been active for more than 25 years and claims to have over 3,000 clients, serving nearly 50.0 per cent of the Fortune 500.
The group generated revenue of USD 2.30 billion in 2017, according to its website.
News comes just two months after Alight sold its HR services in India to Wipro for USD 117.00 million.
Additionally, Blackstone recently paid USD 20.00 billion for the financial and risk business of Thomson Reuters in October.
The data processing, hosting and related services sector has featured in 8,310 deals worldwide in the calendar year to date, according to Zephyr, the M&A database published by Bureau van Dijk.
Of these transactions, the largest involved Broadcom acquiring US-based information technology application CA for USD 18.40 billion earlier this month.
Other targets included Ant Financial Services of China, Singapore-based Flipkart, China’s Tencent Holdings and US-headquartered BMC Software.
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