Conduent Completes Sale of its Curbside Management and Public Safety Businesses to Modaxo
Conduent Incorporated (Nasdaq: CNDT) has completed the sale of its Curbside Management Solutions and Public Safety Solutions businesses to Modaxo for $230 million. The sale is part of Conduent's strategy to focus on core capabilities and drive growth. The company aims to streamline its portfolio and enhance shareholder and client value while continuing to innovate in Road Usage Charging Solutions and Transit Solutions.
Successful completion of the sale of Curbside Management Solutions and Public Safety Solutions businesses to Modaxo.
Focus on core capabilities and growth strategy to benefit shareholders and clients.
Continued innovation in Road Usage Charging Solutions and Transit Solutions businesses.
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Insights
The divestiture of Conduent's Curbside Management Solutions and Public Safety Solutions businesses for
Evaluating the use of proceeds is important for stakeholders, as they can significantly influence Conduent's ability to invest in innovative technologies within its Road Usage Charging and Transit Solutions, thereby driving future revenue growth. It's also worth considering how the sale might affect the company's balance sheet, potentially reducing debt levels or spurring investment in the core business segments. The strategic realignment should be viewed within the context of the broader industry, where companies are increasingly focusing on niche segments to command higher market shares and client loyalty.
From a market dynamics perspective, Conduent's divestment to Modaxo, a division of Constellation Software Inc., indicates a trend of consolidation and specialization within the technology solutions sector. The move could be seen as a positive development for Conduent's agility in the market. Streamlined operations often lead to more innovative solutions and improved customer service, potentially increasing market share in the company's specific niches.
This transaction could also signal to investors that Conduent is serious about executing its stated growth strategy, which may reflect positively on investor sentiment. However, it's essential to monitor the transition's smoothness for team members and clients, as these are critical factors for maintaining service quality and avoiding disruptions that could have adverse business outcomes.
Sale demonstrates continued progress in Conduent’s strategy to streamline its portfolio to drive increased focus on its core capabilities and enable synergistic growth
“This divestiture marks another significant step in our efforts to concentrate on our core capabilities and foster growth that benefits both our shareholders and clients,” said Cliff Skelton, Conduent President and CEO. “With the completion of this sale, our focus remains on a smooth transition for our team members and clients as we continue to execute our growth strategy and advance toward our deployable capital goal.”
As outlined during Conduent’s 2023 investor briefing, the company set on a course to rationalize its business portfolio to increase focus on core capabilities, become more nimble, and enhance shareholder and client value.
Conduent will also continue to drive innovation in its Road Usage Charging Solutions and Transit Solutions businesses to enable streamlined, high-volume mobility services. The sale to Modaxo has no impact on these businesses.
Additional details of the transaction are outlined in Conduent’s 8-K filed with the
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 59,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately
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Trademarks
Conduent is a trademark of Conduent Incorporated in
Forward-Looking Statements
This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,” “expect,” "plan," “intend,” “will,” “aim,” “should,” “could,” “forecast,” “target,” “may,” "continue to," “endeavor,” "if,” “growing,” “projected,” “potential,” “likely,” "see," "ahead," "further," "going forward," "on the horizon," “enable,” “strategy,” and similar expressions (including the negative and plural forms of such words and phrases), as they relate to us, are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact included in this press release are forward-looking statements, including, but not limited to, statements regarding Conduent’s focus on continuing to provide a seamless transition for team members and clients as Conduent executes its growth strategy and advances towards its deployable capital goal, expectations that Conduent will continue to drive innovation in its Road Usage Charging Solutions and Transit Solutions businesses to enable streamlined, high-volume mobility services, and Conduent’s strategy to streamline its portfolio to drive increased focus on its core capabilities and enable synergistic growth, as well as to rationalize its business portfolio to increase focus on core capabilities, become more nimble, and enhance shareholder and client value. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, many of which are outside of our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make. Important factors and uncertainties that could cause actual results to differ materially from those in our forward-looking statements include, but are not limited to: Conduent’s ability to realize the benefits anticipated from the sale of its curbside management and public safety businesses; unexpected costs, liabilities or delays in connection with the transaction; the significant transaction costs associated with the transaction; negative effects of the announcement, pendency or consummation of the transaction on the market price of our common stock or operating results, including as a result of changes in key customer, supplier, employee or other business relationships; the risk of litigation or regulatory actions; our inability to retain and hire key personnel; the risk that certain contractual restrictions contained in the definitive transaction agreement could adversely affect our ability to pursue business opportunities or strategic transactions; and other factors that are set forth in the “Risk Factors” and other sections of our Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements made by us in this press release speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether because of new information, subsequent events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501849937/en/
Media:
Sean Collins, Conduent, +1-310-497-9205, sean.collins2@conduent.com
Neil Franz, Conduent, +1-240-687-0127, neil.franz@conduent.com
Investor Relations:
Giles Goodburn, Conduent, +1-203-216-3546, ir@conduent.com
Source: Conduent Incorporated
FAQ
What businesses did Conduent sell to Modaxo?
Conduent sold its Curbside Management Solutions and Public Safety Solutions businesses to Modaxo.
What was the purchase price of the sale?
The sale had a purchase price of $230 million.
When was the signing of the transaction announced?
The signing of the transaction was announced on December 28, 2023.
What is Conduent's stock symbol?
Conduent's stock symbol is CNDT.
