Alight, Inc. (NYSE: ALIT), a leading cloud-based provider of human capital technology and services, today announced that it has terminated the previously announced the sale of its Professional Services segment and its Payroll & HCM Outsourcing operations within the Employer Solutions segment (“Payroll & Professional Services business”) to a subsidiary of HIG Capital. The sale of the Payroll & Professional Services business, which will operate as an independent business and has been renamed Strada, includes a transaction value of up to $1.2 billion, in the form of upfront cash of $1 billion and up to 200 million USD. in seller notes, of which $150 million is contingent upon Strada achieving certain financial goals by 2025, which are substantially in line with current performance levels.
As previously discussed, the company expects to use the majority of its initial net proceeds to reduce its debt, resulting in a pro forma net leverage ratio of less than three times. Remaining proceeds and future cash flow generation are expected to be used for share repurchases and for general corporate purposes.
"Today's announcement represents a strategic milestone that will accelerate Alight's transformation towards a simplified and focused employee wellness and benefits platform company," said CEO Stephan Scholl. “I am pleased with the tremendous collaboration between both organizations to complete this pivotal transaction and begin our strategic partnership with great momentum while preserving our customer proposition. Together, we will continue to put our customers at the center and deliver improved cost, experience and productivity outcomes for organizations and their valued employees.”
“Alight, culminating in today's announcement, now begins its next chapter as a simplified company with even greater agility and a renewed focus on its sophisticated proprietary technology," said Chairman William P. Foley, II. "This strategic transaction unlocks great potential for a streamlined Alight to drive sustainable, profitable growth and shareholder value over the long term."
Webcast Details
Alight expects to disclose its historical pro forma results for continuing operations four days after the completion of the transaction.
In conjunction with the disclosure, Alight will publish another webcast the Events and Presentations section on the company's investor relations website at 8:30 a.m. (ET) on July 18, 2024, during which time management will review supplemental materials regarding the closing of the transaction.
About Alight Solutions
Alight is a leading cloud-based provider of human capital technology and services for many of the world's largest organizations. Through the administration of employee benefits, Alight provides confident decisions about the health, wealth, leaves and well-being of 35 million people and dependents. Our Alight Worklife ® the platform empowers employers to gain a deeper understanding of their workforce and engage them during the most important moments of their lives with personalized benefits management and data-driven insights, leading to increased employee well-being, engagement and productivity. Learn how Alight unlocks growth for organizations of all sizes at alight.com
About Strada
Strada is a global leader in human capital management and payroll technology and services throughout the lifecycle. With over 8,000 employees worldwide, the company provides a comprehensive offering of technology and services, including US and multi-country global payroll, HR administration and outsourced services, and cloud technology consulting, implementation and application managed services. Through its differentiated breadth of services, developed in-house technology and decades-long commitment to innovation, Strada delivers business-critical solutions to enterprise customers in 185 countries. For more information, visit stradaglobal.com.
English 
Svenska