Conduent announced that it has entered into a definitive agreement to sell its Tolling business to Quarterhill for $70 million in cash.
Quarterhill will also assume most liabilities associated with the business, including all surety bond obligations.
As part of the transaction, Conduent will receive a 7% interest in Quarterhill, along with registration rights and board observer rights. The transaction is expected to close before the end of 2026.
Conduent’s Tolling business is part of Conduent Transportation. The business operates in the U.S. and U.K. and provides mission-critical technology for all-electronic tolling, roadside and back-office processing, image review, violation enforcement, and analytics.
The business supports more than 14 million tolling transactions per day. The deal follows Conduent’s recently announced agreement to sell its Public Transit business, which is also part of Conduent Transportation and is similarly expected to close before the end of 2026.
Conduent said the Tolling and Public Transit transactions will simplify its portfolio and increase focus on its core businesses.
The company also said the transactions are expected to enhance the predictability and durability of its earnings profile.
The sale is expected to improve Conduent’s financial profile by enhancing financial flexibility and reducing exposure to non-core obligations.
Quarterhill is a global provider of intelligent transportation system solutions. The company’s platforms process billions of transactions each year, support compliance and safety inspections for millions of commercial vehicles, and help transportation agencies optimize traffic lanes.
Quarterhill uses artificial intelligence and machine learning technologies to deliver automation and predictive insight for transportation networks.
Conduent said Quarterhill’s experience in tolling positions it to support the Tolling team and its clients after the transaction closes.
Conduent is a technology-driven business solutions and services provider serving commercial, government, and transportation clients.
The company uses cloud computing, artificial intelligence, machine learning, automation, and advanced analytics to deliver mission-critical solutions.
Conduent has approximately 48,000 associates and provides services including government payment disbursement, customer service interactions, HR services, and tolling transaction processing.
KEY QUOTES:
“This Tolling transaction, alongside the previously announced Public Transit agreement, advances our strategy to simplify our portfolio, sharpen focus on our core businesses, and strengthen our financial foundation. We are continuing our strategic journey to enhance long-term value creation, including simplifying our business, strengthening the balance sheet, and increasing sustainable free cash flow.”
“With more than four decades of experience in tolling, Quarterhill is extremely well positioned to support the Conduent Tolling team and its clients. As we move toward closing, we remain committed to delivering outstanding quality and performance for all Transportation clients while ensuring smooth transitions for both clients and associates.”
Harsha V. Agadi, President and CEO of Conduent
