Alight Issues Statement in Conjunction with Cannae

Rhea-AI Summary

Alight (NYSE: ALIT), a cloud-based human capital technology and services provider, has announced that Cannae and Board Chairman William P. Foley, II sold 12 million shares of Alight's common stock. The sale was conducted to address Cannae's liquidity requirements, as the company does not generate operating income. Foley stated that Cannae has no plans for additional Alight share sales in the near future and maintains strong confidence in Alight's long-term prospects and financial profile.

Positive

• Chairman affirmed strong confidence in company's long-term prospects
• No additional share sales expected in foreseeable future

Negative

• Major shareholder Cannae sold 12 million shares
• Sale indicates Cannae's need for immediate liquidity

Insights

Financial Analyst

The sale of 12 million shares by major shareholder Cannae represents a significant secondary offering that could impact ALIT's stock price and market perception. While Cannae frames this as a liquidity-driven decision rather than a loss of confidence, such large insider sales typically create downward pressure on share prices. Based on ALIT's current stock price, this transaction amounts to approximately $100 million.

Notably, Foley's statement aims to reassure investors by emphasizing this is not the beginning of a larger exit and reaffirming belief in ALIT's fundamentals. However, Cannae's need for liquidity and inability to generate operating income raises questions about their financial position as a major shareholder. The timing and size of this sale could signal broader market concerns about growth-oriented tech stocks in the current economic environment.

CHICAGO--(BUSINESS WIRE)-- Alight, Inc. (NYSE: ALIT) (the "Company”), a leading cloud-based human capital technology and services provider, today issued a statement on behalf of Cannae and Alight’s Chairman of the Board William P. Foley, II.

“Yesterday, Cannae sold 12 million shares of Alight’s common stock in support of Cannae’s own liquidity needs. Cannae does not generate operating income and will from time to time sell assets to generate cash for our strategic needs. This sale met that objective, and we do not have any expectations for additional sales of Alight shares for the foreseeable future. Our conviction in Alight’s attractive long-term thesis and financial profile is steadfast,” commented Foley.

About Alight Solutions

Alight is a leading cloud-based human capital technology and services provider for many of the world’s largest organizations. Through the administration of employee benefits, Alight powers confident health, wealth, leaves and wellbeing decisions for 35 million people and dependents. Our Alight Worklife^® platform empowers employers to gain a deeper understanding of their workforce and engage them throughout life’s most important moments with personalized benefits management and data-driven insights, leading to increased employee wellbeing, engagement and productivity. Learn how Alight unlocks growth for organizations of all sizes at alight.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, these forward-looking statements can be identified by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks described under the section entitled “Risk Factors” of Alight’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on February 29, 2024, and in the Quarterly Report on Form 10-Q filed with the SEC on May 8, 2024 and on November 12, 2024, as such factors may be updated from time to time in Alight's filings with the SEC, which are, or will be, accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be considered along with other factors noted in this presentation and in Alight’s filings with the SEC. Alight undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241204077910/en/

Investors:

Jeremy Cohen

investor.relations@alight.com

Media:

Mariana Fischbach

mariana.fischbach@alight.com

Source: Alight Solutions

FAQ

How many Alight (ALIT) shares did Cannae sell in the recent transaction?

Cannae sold 12 million shares of Alight's (ALIT) common stock.

Why did Cannae sell its Alight (ALIT) shares?

Cannae sold the shares to address its own liquidity needs, as the company does not generate operating income and requires cash for strategic purposes.

Will Cannae sell more Alight (ALIT) shares in the near future?

According to Chairman William P. Foley II, Cannae does not have any expectations for additional sales of Alight shares for the foreseeable future.