Alight, Inc. (NYSE: ALIT), a leading cloud-based provider of human capital technology and services, today announced the completion of the previously disclosed sale of its Professional Services segment and its Payroll & HCM Outsourcing businesses within the Employer Solutions segment (the “Payroll & Professional Services business”) to a subsidiary of HIG Capital. The divested business will operate independently under the name Strada. The transaction has a total potential value of up to $1.2 billion, consisting of $1.0 billion in upfront cash and up to $200 million in seller notes, $150 million of which is contingent upon Strada achieving certain 2025 financial targets that are substantially in line with current performance levels.
As previously discussed, Alight expects to use the majority of initial net proceeds to reduce debt, resulting in a pro forma net leverage ratio of under three times. Remaining proceeds and future cash flow generation are expected to support share repurchases and general corporate purposes.
“Today’s announcement marks an important strategic milestone that accelerates Alight’s transformation into a simpler, more focused platform company dedicated to employee well‑being and benefits,” said Chief Executive Officer Stephan Scholl. “I am grateful for the extensive collaboration between both organizations to complete this critical transaction and launch our strategic partnership quickly while preserving our customer value proposition. Together we will keep our clients at the center of everything we do, delivering improved cost outcomes, user experiences, and productivity results for organizations and their valued employees.”
“With today’s closing, Alight begins its next chapter as a streamlined company with greater agility and renewed focus on its sophisticated, proprietary technology,” said Board Chair William P. Foley, II. “This strategic transaction unlocks significant potential for a more focused Alight to drive sustainable, profitable growth and long‑term shareholder value.”
Webcast Details
Alight expects to release historical pro forma results for the continuing business four days after the closing of the transaction.
In connection with that disclosure, Alight will host a webcast available in 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 information related to the closing.
About Alight Solutions
Alight is a leading cloud-based provider of human capital technology and services serving many of the world’s largest organizations. Through benefits administration, Alight empowers confident decisions about health, wealth, payroll and wellness for 35 million people and their families. The Alight Worklife® platform enables employers to better understand and engage their workforce at life’s key moments with personalized benefits administration and data-driven insights, helping to improve employee well‑being, engagement and productivity. Learn how Alight helps organizations of all sizes unlock growth at alight.com.
About Strada
Strada is a global leader in human capital management and payroll technology and services across the full employee lifecycle. With more than 8,000 employees worldwide, Strada offers a comprehensive suite of technology and services including global payroll in the U.S. and multiple countries, HR administration and outsourced services, as well as cloud technology advisory, implementation and application-managed services. Leveraging a differentiated breadth of services, proprietary technology and decades of innovation, Strada delivers mission‑critical solutions to enterprise customers in 185 countries.