secwatch.observer — SEC 8-K summary
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Issuer:     Alight, Inc. / Delaware (ALIT)
CIK:        0001809104
Form:       8-K
Filed at:   2024-03-20T23:59:59+00:00
Accession:  0000950170-24-033968
Event type: m_and_a
Sentiment:  positive
Materiality: 0.85
Item codes: 1.01, 7.01, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1809104/000095017024033968/0000950170-24-033968-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1809104/000095017024033968/alit-20240320.htm
  HTML page:      https://secwatch.observer/filing/0000950170-24-033968

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer