Alight ( $WPF SPAC) – analysis and recommendation (Pass for now)

Alight a HR, payroll, health outsourcing company, which was a part of AON was sold to Blackstone in 2017 for $4.3B. It was recording $2.0B in revenue in 2017 and today has grown to $2.6B – growing 30% over 3 years and 6% in 2020.

Today Foley Trasimene Acquisition Corp ($WPF) announced a SPAC merger to take the company public with a valuation of $7.3B

WPF Foley Trasimene Stock performance

I am going to pass on investing in this company. While the valuation is attractive (2.8X 2020 Revenue), and they have many F1000 customers as clients, the slow growth, combined with a largely low margin outsourcing business that has grown via acquisitions and still delivered little incremental value to justify the growth in EV/Rev from 2.15 in 2017 to 2.81 in 2020.