Alight sells Payroll & Professional Services to H.I.G. Capital for up to $1.2B; raises margin guidance

Alight, Inc. / Delaware

Sale price: $1.0B cash + $50M note at closing + up to $150M contingent note on 2025 performance.
Expected closing by mid-2024, subject to regulatory approvals; no stockholder vote required.
Post-close recurring revenue to rise from 84% to >90%; mid-term adjusted EBITDA margin target raised to 28%.
Net after-tax cash proceeds to reduce debt, target net leverage below 3x; board adds $200M to stock buyback authorization ($248M total).
Transaction valued at ~10x 2023 adjusted EBITDA and ~24x unlevered free cash flow.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Alight, Inc. / Delaware entered into Stock and Asset Purchase Agreement with Axiom Buyer, LLC, a newly-formed entity and an affiliate of H.I.G. Capital, L.L.C. valued at up to approximately $1.2 billion (effective 2024-03-20).

Action: entry
Agreement: asset purchase
Counterparty: Axiom Buyer, LLC, a newly-formed entity and an affiliate of H.I.G. Capital, L.L.C.
Value: up to approximately $1.2 billion
Effective: 2024-03-20

Exact text from the filing

On March 20, 2024, Alight, Inc. (together with its subsidiaries, the “Company” or “Alight”) and Tempo Acquisition LLC, a subsidiary of the Company (“Seller”), entered into a Stock and Asset Purchase Agreement (the “Purchase Agreement”), pursuant to which Seller has agreed to sell Alight’s Professional Services segment and Alight’s Payroll & HCM Outsourcing businesses within the Employer Solutions segment (collectively, the “Divested Business” or “Payroll and Professional Services”) to Axiom Buyer, LLC, a newly-formed entity and an affiliate of H.I.G. Capital, L.L.C. (“Purchaser”), for a purchase price of up to approximately $1.2 billion (the “Purchase Price”), plus the assumption by Purchaser of certain liabilities of the Divested Business as specified in the Purchase Agreement (collectively, the “Transaction”).

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Alight, Inc. / Delaware filing history →

Source: SEC EDGAR

accession 0000950170-24-033968

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