[Global] Formation of Payroll & Professional Services business Strada announced

On July 12, the cloud-based human capital technology and services provider Alight announced that it had closed the sale of its Professional Services segment and its Payroll & HCM Outsourcing businesses within the Employer Solutions segment to an affiliate of H.I.G. Capital. The Payroll & Professional Services business will operate as an independent business called Strada.

The sale of the Payroll & Professional Services business 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 this, $150 million is reportedly contingent upon Strada reaching certain 2025 financial targets. These are substantially in line with current performance levels.

“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,” Stephan Scholl - Chief Executive Officer - said. “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,” William P. Foley, II - Chair of the Board - said. “This strategic transaction unlocks great potential for a streamlined Alight to drive sustainable, profitable growth and shareholder value over the long term.” 

Source: Alight

On July 12, the cloud-based human capital technology and services provider Alight announced that it had closed the sale of its Professional Services segment and its Payroll & HCM Outsourcing businesses within the Employer Solutions segment to an affiliate of H.I.G. Capital. The Payroll & Professional Services business will operate as an independent business called Strada.

The sale of the Payroll & Professional Services business 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 this, $150 million is reportedly contingent upon Strada reaching certain 2025 financial targets. These are substantially in line with current performance levels.

“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,” Stephan Scholl - Chief Executive Officer - said. “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,” William P. Foley, II - Chair of the Board - said. “This strategic transaction unlocks great potential for a streamlined Alight to drive sustainable, profitable growth and shareholder value over the long term.” 

Source: Alight