02:48 PM EDT, 07/12/2024 (MT Newswires) -- Alight (ALIT) said Friday that it has completed the $1.2 billion sale of its professional services segment and payroll and outsourcing businesses to an affiliate of H.I.G. Capital.

The combined payroll and professional services business would operate as an independent entity under the Strada name, the company said.

Alight received $1 billion in upfront cash and could receive up to an additional $200 million in seller notes, of which $150 million is dependent on Strada reaching certain 2025 financial targets, the company said.

Alight said it will use proceeds from the sale to primarily reduce its debt.

Shares of the company rose 2.2% in recent trading.

Price: 7.29, Change: +0.16, Percent Change: +2.24