By David French and Joshua Franklin
(Reuters) – Private equity firm Blackstone Group LP
The IPO could come in the first half of 2019, the four sources said, almost two years after Blackstone acquired Alight from insurance broker Aon Plc
Blackstone has hired Bank of America Corp
The IPO could raise between $500 million and $750 million, one of the sources said, cautioning that its exact timing depended on market conditions.
The sources asked not to be identified because the matter is confidential. Blackstone, JPMorgan and Morgan Stanley declined to comment, while Alight and Bank of America did not immediately respond to requests for comment.
Buyout firms have been prolific investors in businesses that help companies cut costs by outsourcing large parts of their administrative functions, since such operations can generate strong cash flows.
Lincolnshire, Illinois-based Alight offers benefits administration and cloud-based human resources services to 22 million people, and generated revenue of $2.3 billion in 2017, according to its website.
Before selling Alight to Blackstone last year, Aon had taken ownership of it as part of its acquisition in 2010 of Hewitt Associates Inc for $4.9 billion.
Dealmaking has heated up in the benefits sector this year, as some of these companies turn to dealmaking to counter fierce price competition for their services.
In October, French IT services company Atos SE
In another deal by a private equity firm, Carlyle Group LP
(This story was refiled to replace the word ‘some’ with ‘come’ in second paragraph)
(Reporting by David French and Joshua Franklin in New York; additional reporting by Mike Spector and Greg Roumeliotis in New York; Editing by Lisa Shumaker)