Conduent Incorporated (Nasdaq: CNDT) agreed to sell its public transit technology division to Modaxo for $164 million, a move aimed at streamlining its operations that sent the company’s shares up more than 12 percent. The sale is expected to close before the end of 2026.
"This transaction advances our strategy to simplify the portfolio, sharpen focus on our core businesses, and strengthen our financial foundation," Harsha V. Agadi, Conduent President and Chief Executive Officer, said in a statement. "Modaxo’s technology focus makes it a strong strategic fit for the Public Transit business and those it serves."
The all-cash deal includes Conduent’s fare collection and fleet management systems for public transportation. The transaction is subject to customary conditions and regulatory approvals. Conduent will retain its tolling business, which provides all-electronic tolling, roadside, and back-office processing, supporting more than 14 million tolling transactions per day.
The divestiture provides Conduent with significant capital which could be used for debt reduction or investment in its core businesses. For Modaxo, a global technology organization focused on moving people, the acquisition adds a portfolio of solutions serving transit agencies, including fare collection systems that help boost revenue and reduce operational costs.
Modaxo's acquisition of Conduent's Public Transit business, which consists of Transit Fare Management and Fleet Management Solutions, will enhance its existing portfolio of software and technology solutions for the transportation sector. The acquired business has global operations and offers hardware-enabled mobility systems.
Conduent's shares jumped over 12% in trading following the news, indicating a positive market reaction to the divestiture. The company has been working to streamline its portfolio to drive long-term value for shareholders.
This article is for informational purposes only and does not constitute investment advice.
