Company to post webcast on July 18th to
accompany pro forma disclosures
Alight, Inc. (NYSE: ALIT or the “Company”), a leading
cloud-based human capital technology and services provider, today
announced that it has closed the previously announced sale of its
Professional Services segment and its Payroll & HCM Outsourcing
businesses within the Employer Solutions segment (the “Payroll
& Professional Services business”) to an affiliate of H.I.G.
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 gross proceeds of $1 billion in
cash and up to $200 million in seller notes, of which $150 million
is contingent upon Strada reaching certain 2025 financial targets,
which are substantially in line with current performance
levels.
As previously discussed, the Company anticipates using the
majority of its initial net proceeds to reduce its debt, resulting
in a pro forma net leverage ratio of below three times. The
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 toward a simplified and focused
platform company for employee wellbeing and benefits,” said Chief
Executive Officer Stephan Scholl. “I am pleased with the tremendous
collaboration across both organizations in accomplishing this
pivotal transaction and commencing our strategic partnership with
substantial momentum while preserving our client value proposition.
Together, we will continue to keep our clients front and center,
delivering improved cost, experience and productivity outcomes for
organizations and their valued employees.”
“Culminating in today’s announcement, Alight is now embarking on
its next chapter as a simplified company with even greater agility
and a renewed focus on its sophisticated proprietary technology,”
said Chair of the Board 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 historic pro forma results for
the continuing business 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 close
of the transaction.
About Alight Solutions
Alight is a leading cloud-based human capital technology and
services provider for many of the world’s largest organizations.
Through the administration of employee benefits, Alight powers
confident health, wealth, leaves and wellbeing decisions for 35
million people and dependents. Our Alight Worklife® platform
empowers employers to gain a deeper understanding of their
workforce and engage them throughout life’s most important moments
with personalized benefits management and data-driven insights,
leading to increased employee wellbeing, engagement and
productivity. Learn how Alight unlocks growth for organizations of
all sizes at alight.com.
About Strada
Strada is a global leader in full-lifecycle human capital
management and payroll technology and services. With over 8,000
employees across the world, the Company provides an end-to-end
offering of technology and services, including U.S. and
multi-country global payroll, HR administration & outsourced
services, and cloud technology advisory, deployment &
application managed services. Through its differentiated breadth of
services, proprietary technology, and decades-long commitment to
innovation, Strada delivers mission-critical solutions to
enterprise clients across 185 countries. For more information,
visit stradaglobal.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements include, but are
not limited to, statements regarding the anticipated benefits of
the sale of our Payroll and Professional Services business to an
affiliate of H.I.G. Capital (including the achievement of our
financial objectives), support plans, opportunities, anticipated
future performance and statements regarding our use of proceeds and
expected stock buyback programs. In some cases, these
forward-looking statements can be identified by the use of words
such as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates” or the negative
version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties including, among others, risks related to declines in
economic activity in the industries, markets, and regions our
clients serve, including as a result of elevated interest rates or
changes in monetary and fiscal policies, competition in our
industry, risks related to the performance of our information
technology systems and networks, risks related to our ability to
maintain the security and privacy of confidential and proprietary
information, risks related to actions or proposals from activist
stockholders, risks related to the ability to meet the contingent
payment conditions of the seller note, and risks related to changes
in regulation, including developments on the use of artificial
intelligence and machine learning. Additional factors that could
cause Alight’s results to differ materially from those described in
the forward-looking statements can be found under the section
entitled “Risk Factors” of Alight’s Annual Report on Form 10-K,
filed with the Securities and Exchange Commission (the "SEC") on
February 29, 2024, as such factors may be updated from time to time
in Alight's filings with the SEC, which are, or will be, accessible
on the SEC's website at www.sec.gov. Accordingly, there are or will
be important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. These
factors should not be construed as exhaustive and should be
considered along with other factors noted in this presentation and
in Alight’s filings with the SEC. Alight undertakes no obligation
to publicly update or review any forward-looking statement, whether
as a result of new information, future developments or otherwise,
except as required by law.
Non-GAAP Financial Measures
Included in this press release are certain non-GAAP financial
measures, such as Net Leverage Ratio, designed to complement the
financial information presented in accordance with U.S. GAAP
because management believes Net Leverage Ratio is useful to
investors. This non-GAAP financial measure should be considered
only as supplemental to, and not superior to, financial measures
provided in accordance with GAAP.
Because GAAP financial measures on a forward-looking basis are
not accessible, and reconciling information is not available
without unreasonable effort, we have not provided reconciliations
for forward-looking non-GAAP measures, including our anticipated
Net Leverage Ratio following the completion of the transaction.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240712691768/en/
Investors: Jeremy Cohen Investor.Relations@alight.com
Media: Mariana Fischbach mariana.fischbach@alight.com
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