Alight, Inc. (NYSE: ALIT), a leading cloud-based provider of human capital technology and services, today announced that it has completed the previously announced sale of its Professional Services segment and its Payroll & HCM Outsourcing businesses 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 an upfront payment of $1 billion in cash and up to $200 million in seller notes, of which $150 million is conditional upon Street achieves certain financial targets for 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 general corporate purposes.
“Today’s announcement represents a strategic milestone that will accelerate Alight’s transformation into a simplified and focused platform company for employee well-being and benefits,” said CEO Stephan Scholl. “I am pleased with the tremendous collaboration between both organizations to complete this pivotal transaction and kick-start our strategic partnership with great momentum while preserving our customer offering. Together, we will continue to keep our customers at the center and deliver improved costs, experiences and productivity outcomes for organizations and their valued employees.”
“Alight, culminating in today's announcement, is now entering its next chapter as a simplified company with even greater agility and a renewed focus on its sophisticated proprietary technology,” says Chairman of the Board William P. Foley, II“This strategic transaction unlocks significant 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 post a webcast to the Events and Presentations section of the Company's Investor Relations website at 8:30 a.m. (ET) on July 18, 2024, during which 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 to many of the world's largest organizations. Through employee benefits administration, Alight empowers 35 million people and their dependents with confident decisions about health, wealth, leaves and well-being. Our Alight Worklife ® The platform empowers employers to gain a deeper understanding of their workforce and engage them during life's most important moments 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 across the entire lifecycle. With over 8,000 employees worldwide, the company provides a comprehensive technology and services offering, including global payroll in the U.S. and multiple countries, HR administration and outsourced services, and cloud technology consulting, implementation, and application managed services. Through its differentiated breadth of services, proprietary technology and decades of commitment to innovation, Strada delivers mission-critical solutions to enterprise customers in 185 countries. For more information, visit stradaglobal.com.
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