Conduent Completes Sale of its Midas Suite of Solutions to symplr

Rhea-AI Summary

Conduent (Nasdaq: CNDT) has finalized the sale of its Midas Suite of Solutions to symplr for $340 million, resulting in net proceeds of approximately $270 million for the company. These funds will be utilized for debt repayment and further investments in its business. This transaction aligns with Conduent’s strategy to maximize synergies within its portfolio to boost shareholder and client value. The company remains committed to providing healthcare solutions that enhance member experiences, automate claims, and streamline operations, serving 75% of U.S. insured patients.

Positive

• Sale of Midas Suite generates $270 million in net proceeds.
• Funds will be used for debt repayment and business investments.
• Transaction enhances focus on strategic synergies to boost shareholder value.
• Continued commitment to serving healthcare sector with a range of solutions.

Negative

• None.

Sale ties to Conduent’s ongoing strategy to focus on synergies within its portfolio to enhance shareholder and client value

Conduent will continue to offer a range of solutions serving the healthcare industry

FLORHAM PARK, N.J., Feb. 09, 2022 (GLOBE NEWSWIRE) -- Conduent Incorporated (Nasdaq: CNDT), a business process services and solutions company, today announced it has closed the sale of its Midas Suite of Solutions to symplr® for a price of $340 million less certain customary adjustments. The signing of the transaction was announced Jan. 4, 2022.

Net proceeds, after payment of taxes and related expenses, are expected to be approximately $270 million, and will be used for repayment of debt and investing in Conduent’s business.

As previously disclosed, the transaction is part of Conduent’s ongoing strategy to focus on synergies within its portfolio to enhance shareholder and client value. Conduent will continue to provide a seamless transition for Midas clients and associates.

Conduent is proud to continue serving the healthcare industry with offerings spanning patient engagement, care management and claims processing. Conduent’s services and solutions interact with 75 percent of U.S. insured patients. These solutions enhance member experiences, elevate claims automation, and optimize key business operations to drive process and cost efficiencies across the healthcare ecosystem.

About Conduent
Conduent delivers mission-critical services and solutions on behalf of businesses and governments – creating exceptional outcomes for its clients and the millions of people who count on them. Through process, technology and our diverse and dedicated associates, Conduent solutions and services automate workflows, improve efficiencies, reduce costs and enable revenue growth. It’s why most Fortune 100 companies and over 500 government entities depend on Conduent every day to manage their essential interactions and move their operations forward.

Conduent’s differentiated services and solutions improve experiences for millions of people every day, including three out of every four U.S. insured patients, 10 million employees who use its HR Services, and nearly 18 million benefits recipients. Conduent’s solutions deliver exceptional outcomes for its clients including $18 billion of total bill reductions from medical bill review of workers compensation claims, up to 40% efficiency increase in HR operations, up to 27% reduction in government benefits costs, up to 40% improvement in finance, accounting and procurement expense, and improved customer service interaction times by up to 20% with higher end-user satisfaction. Learn more at conduent.com.

Conduent Forward-Looking Statements

This release and any attachments to this 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," "if,” “growing,” “projected,” “potential,” “likely,” and similar expressions, 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 our belief that the transaction will streamline opportunities that enhance shareholder and client value, that Conduent’s core offerings will continue to include a range of solutions for the healthcare industry that enhance member experiences, elevate claims automation, and optimize key business operations to drive process and cost efficiencies across the healthcare ecosystem. These statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied herein as anticipated, believed, estimated, expected or intended or using other similar expressions.

In accordance with the provisions of the Litigation Reform Act, we are making investors aware that such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this press release, any exhibits to this press release and other public statements we make. Our actual results may vary materially from those expressed or implied in our forward-looking statements. These forward-looking statements are also subject to the significant continuing impact of the COVID-19 pandemic on our business, operations, financial results and financial condition, which is dependent on developments which are highly uncertain and cannot be predicted.

Important factors and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements include, but are not limited to: the significant continuing effects of the ongoing COVID-19 pandemic on our business, operations, financial results and financial condition, which is dependent on developments which are highly uncertain and cannot be predicted; government appropriations and termination rights contained in our government contracts; our ability to renew commercial and government contracts, including contracts awarded through competitive bidding processes; our ability to recover capital and other investments in connection with our contracts; our reliance on third-party providers; our ability to deliver on our contractual obligations properly and on time; changes in interest in outsourced business process services; risk and impact of geopolitical events, natural disasters and other factors (such as pandemics, including coronavirus) in a particular country or region on our workforce, customers and vendors; claims of infringement of third-party intellectual property rights; our ability to estimate the scope of work or the costs of performance in our contracts; the loss of key senior management and our ability to attract and retain necessary technical personnel and qualified subcontractors; increases in the cost of telephone and data services or significant interruptions in such services; our failure to develop new service offerings and protect our intellectual property rights; our ability to modernize our information technology infrastructure and consolidate data centers; the failure to comply with laws relating to individually identifiable information and personal health information; the failure to comply with laws relating to processing certain financial transactions, including payment card transactions and debit or credit card transactions; breaches of our information systems or security systems or any service interruptions; our ability to comply with data security standards; changes in tax and other laws and regulations; risk and impact of potential goodwill and other asset impairments; our significant indebtedness; our ability to obtain adequate pricing for our services and to improve our cost structure; our ability to collect our receivables, including those for unbilled services; a decline in revenues from, or a loss of, or a reduction in business from or failure of significant clients; fluctuations in our non-recurring revenue; our failure to maintain a satisfactory credit rating; our ability to receive dividends or other payments from our subsidiaries; developments in various contingent liabilities that are not reflected on our balance sheet, including those arising as a result of being involved in a variety of claims, lawsuits, investigations and proceedings; conditions abroad, including local economics, political environments, fluctuating foreign currencies and shifting regulatory schemes; changes in government regulation and economic, strategic, political and social conditions; changes in the volatility of our stock price and the risk of litigation following a decline in the price of our stock; the impact of the ongoing COVID-19 pandemic; and other factors that are set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section and other sections in our 2020 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 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 as a result of new information, subsequent events or otherwise.

For Conduent:

Media Contact:
Sean Collins
Conduent
Sean.Collins2@conduent.com
+1-310-497-9205

Investor Relations Contact:
Giles Goodburn
Conduent
ir@conduent.com
+1-203-216-3546

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Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. All other product and brand names are trademarks and/or registered trademarks of their respective companies.

FAQ

What is the significance of Conduent's sale of the Midas Suite of Solutions?

The sale allows Conduent to generate $270 million in net proceeds, which will aid in debt repayment and reinvestment into their business.

How much did Conduent sell the Midas Suite of Solutions for?

Conduent sold the Midas Suite for $340 million, with expected net proceeds of approximately $270 million after expenses.

What will Conduent do with the proceeds from the Midas Suite sale?

The proceeds will be used primarily for debt repayment and to support further investments in Conduent's business.

How does the Midas Suite sale fit into Conduent's strategy?

The sale is part of Conduent's strategy to enhance synergies within its portfolio, ultimately aiming to increase shareholder and client value.