Conduent announced that it has entered into a definitive agreement to sell its Public Transit business to Modaxo for $164 million as the company continues efforts to simplify its portfolio and strengthen its balance sheet.
The Public Transit business, which operates under Conduent Transportation, includes the company’s Transit Fare Management and Fleet Management Solutions businesses. The transaction is expected to close before the end of 2026, subject to customary closing conditions and regulatory approvals.
Conduent said the divestiture aligns with its broader strategy of sharpening focus on its core operations while reinforcing its financial position. The company will retain ownership of its Tolling business segment, which provides technology supporting all electronic tolling, roadside and back office processing, image review, violation enforcement, and analytics.
The remaining Tolling business currently supports more than 14 million tolling transactions per day.
The Public Transit business operates globally and provides fare collection systems, fleet management systems, payment and revenue management platforms, along with other hardware enabled mobility systems.
Modaxo, the buyer in the transaction, is a global technology organization focused on transportation software and technology solutions designed to help move people efficiently across cities and regions.
Conduent noted that additional details regarding the transaction were disclosed in an 8-K filing submitted to the U.S. Securities and Exchange Commission.
Conduent delivers digital business solutions and services across commercial, government, and transportation sectors. The company employs approximately 48,000 associates globally and leverages technologies including cloud computing, artificial intelligence, machine learning, automation, and advanced analytics to provide mission critical services.
KEY QUOTES:
“This transaction advances our strategy to simplify the portfolio, sharpen focus on our core businesses, and strengthen our financial foundation. Consistent with the disciplined execution outlined in Q1, it further positions Conduent to deliver sustainable, long-term value for our shareholders, clients, and employees. Modaxo’s technology focus makes it a strong strategic fit for the Public Transit business and those it serves. We remain committed to delivering outstanding quality and performance for our Transportation clients as we prepare for closing and ensure a seamless transition for clients and employees.”
Harsha V. Agadi, President and Chief Executive Officer, Conduent
