Alight, a leading cloud-based human capital technology and services provider, today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with Barclays Bank PLC to repurchase $75 million of Alight’s common stock, as part of the Company’s existing share repurchase program which had remaining authority of $168 million as of June 14, 2024.
Under the terms of the ASR, Alight will make an initial payment of $75 million to Barclays Bank PLC and will receive an initial delivery of shares equal in value to 80% of the prepayment amount of $75 million, based on Alight’s closing share price as of the effective date of July 15, 2024. The final number of shares to be repurchased will be based on the volume-weighted average price of Alight’s common stock during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR. The final settlement of the transaction under the ASR is expected to occur during the third quarter of 2024. The ASR provides that Alight has the option to terminate the ASR at any time before July 15, 2024.
“This accelerated share repurchase agreement reflects our high level of confidence in the business, bolstered by our growing revenue under contract and the value expected to be unlocked by the recent agreement to sell our Professional Services segment and Payroll & HCM Outsourcing businesses,” said Stephan Scholl, Chief Executive Officer of Alight. “Strengthening profitability and cash flow generation enables us to return capital to shareholders more consistently and is in line with our commitment to execute strategic operational objectives while enhancing shareholder value.”
