Alight Solutions

Alight Solutions offers cloud-based business solutions such as global payroll and benefits administration. Its offering is split into two verticals, namely 1) employer solutions to manage health and wealth benefits and payroll for employers and employees and 2) professional services for cloud workforce management through cloud deployment and application services.

Over time, the company has released a host of updates to expand its product offerings. This included releasing Alight Worklife (March 2024) featuring GenAI-driven workforce support and expanded benefits management, including new insurance options and improved health navigation. Other launches included Alight Employee Onboarding (AEO) to streamline the hiring process (October 2023); a wellbeing platform ( September 2022 ); and Alight Digital Wallet ( June 2022 ), a digital wallet powered by API-driven issuer processor QRails, which provides employees earned wage access to support short-term financial needs before their payday.

In March 2024, the company announced its intention to sell its professional services and HCM and payroll outsourcing business to an affiliate of HIG Capital at a purchase price of USD 1.2 billion. Proceeds were expected to be used to repay debt with estimated a pro forma net leverage ratio of less than 3.0x. The overall transaction is expected to close mid-year 2024 pending regulatory approvals and other customary closing conditions.

Alight acquired ReedGroup, a provider of absence management solutions, in December 2022. ReedGroup provides absence management software and outsourcing solutions to the large employer market primarily in the US and Canada. The acquisition was in line with Alight’s strategy to support employees and their dependents throughout the employee lifecycle by adding new content, capabilities, and products and changing how they interact with HR, their benefits, and employers.

Key customers and partnerships

As of April 2024, the platform served over 4,300 clients, including ~70% of Fortune 100 and ~50% of Fortune 500 firms.

In March 2024, the company partnered with SAP to leverage its S/4HANA Cloud to provide enterprises with a cloud-based payroll system.

Funding and financials

In January 2021, the company announced its listing on the NYSE through its merger with Foley Trasimene Acquisition Corp, a blank check company backed by investor Bill Foley. The transaction will imply a pro-forma enterprise value of USD 7.3 billion for Alight.

After the merger, Foley assumed the role of chairman while Stephan Scholl, appointed CEO of Alight Solutions in April 2020, remained as CEO. Funding includes private investment in public equity (PIPE) of USD 1.55 billion from multiple institutional and private investors. The proceeds will be used to deleverage the company’s balance sheet to pursue strategic M&A.

Alight reported revenue of USD 3.4 billion in FY2023, a 9% YoY increase. However, its net losses grew to USD 278 million from USD 72 million in the year before in light of an increase in non-cash charges of USD 271 million. This resulted in a net loss per share of USD 0.54 (compared with a net loss of USD 0.14 in FY2022).

Moving forward, the company expects revenue growth to be within the range of 4%–6% in FY2024 (USD 3.55 billion–3.61 billion), adjusted EBITDA of USD 800 million–815 million and diluted EPS of USD 0.72–0.77.