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News » H.I.G. to acquire Alight’s payroll, professional services units for $1.2Bn

H.I.G. to acquire Alight’s payroll, professional services units for $1.2Bn

NEW YORK, UNITED STATES — Investment firm H.I.G. Capital has signed a definitive agreement to acquire cloud-based human capital technology and services provider Alight’s payroll and professional services business for up to $1.2 billion.

According to Reuters, the deal comprises $1 billion in cash and up to $200 million in seller notes, with $150 million dependent on the unit’s 2025 financial performance. 

Alight aims to transform into a focused employee well-being and benefits platform, raise mid-term adjusted EBITDA margin guidance to 28%, and reduce the net leverage ratio to below three times, among other things. 

Alight also aims to use the net proceeds to reduce debt, return capital, and fund growth opportunities.

The divested unit, rebranded as the Payroll and Professional Services Business, will establish a commercial partnership with Alight.

“We are excited to partner with H.I.G. to establish a standalone global leader in payroll and professional services,” said Luca Saracino, Head of the Payroll and Professional Services Business.

“This strategic transaction results in a more agile Alight and enhances our competitiveness as we strengthen our technology,” said Alight CEO Stephan Scholl.

Alight ranked #31 in the OA500 2024, an objective index of the world’s top 500 outsourcing companies. The company previously ranked 32nd in the OA500 2023.

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