Warburg, Sternlicht SPACs Discuss $20-Billion, 3-Way Deal for Allied Universal

Chairman and CEO of Starwood Capital Group Barry Sternlicht, during the first round of the Pebble Beach National Pro-Am golf tournament at the Monterey Peninsula Country Club course in Pebble Beach, Calif., on Feb. 6, 2014. Michael Fiala/Reuters

Blank-check companies backed by buyout firm Warburg Pincus and billionaire real estate investor Barry Sternlicht are in talks to take security services firm Allied Universal public in a $20 billion deal, according to a source familiar with the matter.

The deal will involve three special purpose acquisition companies (SPACs)—Warburg Pincus Capital Corp. I-A, Warburg Pincus Capital Corp. I-B and an affiliate of Sternlicht’s JAWS Estates Capital LLC..