Conduent Incorporated (NASDAQ:CNDT) said Friday that it has signed a definitive agreement to sell its Public Transit business to Modaxo for $164 million, a transaction that triggered roughly a 15% rise in Conduent shares in premarket trading.
Deal specifics
The divestiture covers two units: Transit Fare Management and Fleet Management Solutions, both components of Conduent Transportation. The companies involved expect the sale to be completed before the end of 2026, subject to customary closing conditions and any required regulatory approvals.
"This transaction advances our strategy to simplify the portfolio, sharpen focus on our core businesses, and strengthen our financial foundation," said Harsha V. Agadi, Conduent President and Chief Executive Officer. "Consistent with the disciplined execution outlined in Q1, it further positions Conduent to deliver sustainable, long-term value for our shareholders, clients, and employees."
Scope of the business being sold
Conduent described the Public Transit unit as a global operation that supplies fare collection systems, fleet management systems, payment and revenue management platforms, and other hardware-enabled mobility systems.
What Conduent keeps
The company will continue to own its Tolling business segment. That segment provides all-electronic tolling, roadside and back-office processing, image review, violation enforcement and analytics. Conduent reported that the Tolling business supports more than 14 million transactions per day.
Strategic rationale
Conduent said the sale is part of ongoing efforts to strengthen the balance sheet and streamline operations. The company, headquartered in Florham Park, New Jersey, offers technology-driven business solutions and services on a global basis.
Market reaction and next steps
Investors reacted to the announcement with a notable premarket share-price increase. The parties anticipate completing the transaction before the end of 2026, assuming standard closing conditions and regulatory approvals are met.
Given the terms released by Conduent and Modaxo, the timetable and regulatory process will determine the ultimate timing of the transfer of the Public Transit assets.