Alight Announces Agreement To Sell Payroll and Professional Services Business for Up To $1.2 Billion (2024)

Alight, Inc. (NYSE: ALIT), a leading cloud-based human capital technology and services provider, today announced that it has signed a definitive agreement to sell 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 for up to $1.2 billion, subject to certain adjustments. This values the Payroll & Professional Services business at a multiple of approximately 10 times its estimated 2023 adjusted EBITDA and 24 times its estimated unlevered free cash flow.

Following the transaction, Alight and the Payroll & Professional Services business will establish a commercial partnership to bolster their collective competitiveness, coupling world-class service capabilities with a compelling value proposition for clients.

The transaction is a pivotal step, accelerating Alight’s evolution into a more simplified and focused employee wellbeing and benefits platform company. The Alight Worklife® platform is optimally positioned to help clients enhance employee engagement and achieve cost savings through advanced solutions. By concentrating resources on strengthening its platform, service capabilities, and go-to-market strategy, Alight will be even better positioned to drive improved cost, experience and productivity outcomes for its clients.

Throughout its transformation, Alight has delivered strong growth while building a robust pipeline and record backlog of revenue under contract. Alight’s focus over the last four years around standardization, automation, and Cloud migration has significantly enhanced the margin profile of the remaining core business. As a result, Alight will achieve nearly 300 basis points of adjusted EBITDA margin expansion upon deal closing. Additionally, the Company is increasing its mid-term adjusted EBITDA margin target to 28%, which would mark a total of 600 basis points of potential margin expansion versus 2023. Alight also expects to accelerate the achievement of other mid-term financial objectives including higher cash generation and a de-levered balance sheet with net leverage ratio expected to be below three times. This will enable continued strategic investment in the business and the return of excess capital to shareholders.

“This strategic transaction results in a more agile Alight and enhances our competitiveness as we strengthen our technology and services value proposition,” said Chief Executive Officer, Stephan Scholl. “Coupling our strategic partnership with the Payroll & Professional Services business alongside our strong benefits business, delivery capabilities, data analytics, and artificial intelligence will ensure prospective and new clients remain on the frontier for wellbeing and benefits solutions. With today’s announcement, we believe the stage is set for Alight to unlock the power of its platform transformation and deliver world-class, innovative solutions that improve client outcomes and enhance shareholder value.”

“We are excited to partner with H.I.G. to establish a standalone global leader in payroll and professional services. By focusing our investments and energy on enhancing our highly differentiated, end-to-end technology and service capabilities, we will be able to add significant incremental value for our clients. With H.I.G.’s support, expertise, and resources, as well as our continued commercial partnership with Alight, we are well-positioned as the partner of choice for global enterprises,” said Luca Saracino, Head of the Payroll and Professional Services business.

“We are thrilled to partner with Luca and the entire Payroll & Professional Services team,” commented Matt Lozow, Managing Director at H.I.G. “As businesses grow increasingly global and face complex technology and compliance requirements, we believe that the Payroll & Professional Services business is uniquely positioned to help clients address the many challenges which this creates. We see a tremendous opportunity for continued growth and look forward to working with the team to build upon their success and leadership position in the market.”

Transaction Details

Pursuant to the terms of the agreement, an affiliate of H.I.G. Capital will acquire Alight’s Payroll & HCM Outsourcing businesses within the Employer Solutions segment which offer North American payroll services, global payroll services, and HCM outsourcing services and Alight’s Professional Services segment, which offers application management and cloud deployment support for Workday, SAP and Oracle.

The sale represents a transaction value of up to $1.2 billion, in the form of $1 billion in cash and up to $200 million in seller notes, of which $150 million is contingent upon the Payroll & Professional Services business’ 2025 financial performance. Alight expects to use the net after-tax cash proceeds to reduce debt, return capital and for general corporate purposes, including reinvestment into growth opportunities.

The transaction has been approved by Alight’s Board of Directors and is expected to close by mid-year 2024, subject to customary closing conditions, including regulatory approvals. The Company expects to update its full-year 2024 financial guidance after closing.

J.P. Morgan Securities LLC served as financial advisor and Simpson Thacher & Bartlett LLP served as legal counsel to Alight. Guggenheim Securities, LLC served as financial advisor and Kirkland & Ellis LLP served as legal counsel to H.I.G. Capital.

Stock Repurchase Program

Complementing its existing stock repurchase program, the Company’s Board of Directors has authorized the repurchase of up to an additional $200 million of the Company’s Class A common stock, providing a total amount authorized for repurchase of $248 million after giving effect to the increase. Repurchases may be conducted through open market purchases or privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including pursuant to Rule 10b5-1 trading plans. The actual timing and amount of future repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. The stock repurchase program does not obligate Alight to acquire any amount of common stock, and the program may be suspended or terminated at any time by Alight at its discretion without prior notice.

Conference Call

Alight will host a webcast to discuss the transaction beginning at 10:00 a.m. (ET) on March 20, 2024 and will post presentation materials regarding the transaction on its website shortly prior to the webcast. Interested parties can access the live webcast and accompanying presentation materials by logging onto the Investor Relations section on the Company's website at, which will also have a replay of the conference call.

About Alight Solutions

Alight is a leading cloud-based human capital technology and services provider that powers confident health, wealth and wellbeing decisions for 36 million people and dependents. Our Alight Worklife® platform combines data and analytics with a simple, seamless user experience. Supported by our global delivery capabilities, Alight Worklife is transforming the employee experience for people around the world. With personalized, data-driven health, wealth, pay and wellbeing insights, Alight brings people the security of better outcomes and peace of mind throughout life’s big moments and most important decisions. Learn how Alight unlocks growth for organizations of all sizes at

About H.I.G. Capital

H.I.G. Capital is a leading global alternative investment firm with $60 billion of capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.

H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.

H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at

*Based on total capital raised by H.I.G. Capital and affiliates

Alight Announces Agreement To Sell Payroll and Professional Services Business for Up To $1.2 Billion (2024)


Is alight solutions being sold? ›

March 20 (Reuters) - Alight (ALIT. N) , opens new tab said on Wednesday it has agreed to sell its professional services and payroll outsourcing business to an affiliate of private equity firm HIG Capital for up to $1.2 billion.

Which companies use alight? ›

Companies Currently Using Alight (Unspecified Product)
Company NameWebsitePhone
Medline Industries 249-1979
BWX 365-4300 663-6000
American Refugee 872-7060
2 more rows

How many employees does alight have? ›

Our support system spans the globe with over 50+ delivery centers and more than 16,000 colleagues across five continents.

What exactly does alight solutions do? ›

Alight is a leading cloud-based human capital technology and services provider that powers confident health, wealth and wellbeing decisions for 36 million people and dependents.

Is Alight owned by Blackstone? ›

Alight was formed in May 2017 after the acquisition of the benefits outsourcing department of Aon Hewitt by private equity funds affiliated with Blackstone Group L.P.

Is Alight owned by Wipro? ›

Wipro, India's third-largest IT services exporter, has acquired the India operations of US-based technology company Alight Solutions for an estimated $117 million.

Who is buying Alight? ›

An affiliate of H.I.G. Capital has signed a definitive agreement to acquire the Payroll and Professional Services Business of Alight, Inc.

Is Alight owned by Aon? ›

Alight Solutions, formerly a part of Aon Hewitt, is the leading provider of benefits administration and cloud-based HR and financial solutions. We enhance work and life through our service, technology and data.

Who acquired Alight? ›

Blackstone plans to merge its record keeping and benefits company Alight Solutions with a special purpose acquisition company, Foley Trasimene Acquisition Corp., to create a new publicly traded company, Alight Inc.

Who is the CEO of Alight? ›

We are committed to adding value in everything we do for you AND your people. As CEO, Stephan Scholl is responsible for the strategy, growth and business performance of Alight, a leading provider of next level human capital and business solutions.

What was the previous name of the Alight? ›

Alight, formerly the American Refugee Committee (ARC), is an international nonprofit, nonsectarian organization that has provided humanitarian assistance and training to millions of beneficiaries over the last 40 years.

Where is the new Alight headquarters? ›

The benefits administration company has signed a roughly 16,000-square-foot lease for the penthouse floor in BMO Tower at 320 S. Canal St., which will serve as Alight's new global headquarters, CEO Stephan Scholl said.

Is Alight a good company? ›

ALIGHT has an overall rating of 4.1 out of 5, based on over 71 reviews left anonymously by employees. 80% of employees would recommend working at ALIGHT to a friend and 72% have a positive outlook for the business. This rating has improved by 5% over the last 12 months.

Is Alight a 401k provider? ›

Alight Solutions 401(k) Index is created from a subset of our clients, one of the largest outsourcing providers in the U.S., providing pension, 401(k), and health care.

Did Aon change to Alight? ›

In October 2021, Alight Solutions acquired Aon Retiree Health Exchange.

Is Alight a good stock to buy? ›

Alight, Inc. is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for ALIT's full-year earnings has moved 7.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Is Aon Hewitt now Alight? ›

In 2017, part of Aon Hewitt was acquired by Blackstone and rebranded as Alight Solutions.


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