Post by icemandios on Dec 28, 2023 14:01:57 GMT
Conduent Announces Agreement to Sell its Curbside Management and Public Safety Businesses to Modaxo
Transaction expected to close in the first quarter of 2024
The transaction is expected to close in the first quarter of 2024. The closing is subject to the satisfaction of customary closing conditions and regulatory approvals.
“This divestiture demonstrates continued progress in streamlining our portfolio to drive increased focus on our core capabilities and enable synergistic growth to create shareholder and client value,” said Cliff Skelton, Conduent President and CEO. “The proceeds from this transaction and that of our previously announced BenefitWallet transaction , will be used principally to reduce debt. We will continue to be open-minded regarding the use of capital associated with future portfolio rationalization efforts. We are committed to ensuring a seamless transition for our associates and clients while continuing to drive innovation in our road usage charging and transit businesses to enable streamlined, high-volume mobility services.”
The two businesses, which support approximately 130 government clients across the globe, operate largely independent from the rest of Conduent’s transportation portfolio. Curbside management provides parking enforcement systems and public safety provides automated photo enforcement processing, both for state and local municipalities.
Additional details of the transaction are outlined in Conduent’s 8-K filed with the U.S. Securities and Exchange Commission (SEC) today.
About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating exceptional outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 60,000 associates, process expertise, and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including delivering 43 percent of nutrition assistance payments in the U.S., enabling 1.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 12 million tolling transactions every day. Learn more at www.conduent.com .
From the 8-K:
Item 8.01. Other Events.
On December 28, 2023, Conduent Incorporated (the “Company”) issued a press release announcing that the Company, through its subsidiary, Conduent Business Services, LLC (“CBS”), as well as other subsidiaries, entered into a definitive agreement to sell the Company’s Curbside Management and Public Safety Solutions businesses. The sale is for an enterprise value of approximately $260 million (including the assumption of certain indebtedness), and is subject to customary purchase price adjustments. The purchase price represents approximately eight times the trailing twelve months of adjusted EBITDA of the disposed businesses. The consummation of the transaction is subject to regulatory approval and the satisfaction or waiver of customary closing conditions, and is expected to close during the first quarter of 2024 with a portion of the proceeds paid in the first quarter of 2025.
On December 28, 2023, Conduent Incorporated (the “Company”) issued a press release announcing that the Company, through its subsidiary, Conduent Business Services, LLC (“CBS”), as well as other subsidiaries, entered into a definitive agreement to sell the Company’s Curbside Management and Public Safety Solutions businesses. The sale is for an enterprise value of approximately $260 million (including the assumption of certain indebtedness), and is subject to customary purchase price adjustments. The purchase price represents approximately eight times the trailing twelve months of adjusted EBITDA of the disposed businesses. The consummation of the transaction is subject to regulatory approval and the satisfaction or waiver of customary closing conditions, and is expected to close during the first quarter of 2024 with a portion of the proceeds paid in the first quarter of 2025.