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Conduent Incorporated (CNDT) to Pursue Separation of Transportation Business

April 7, 2022 8:32 AM EDT

Conduent Incorporated (Nasdaq: CNDT), a business process services and solutions company, today announced it is pursuing a separation of its Transportation business through either a sale or a spin-off.

Conduent’s Board of Directors and management team believe that separating the Transportation business, which serves public sector transportation agencies, will enable Conduent’s Commercial, Government, and Transportation businesses to benefit from more focused operating models and capital allocation priorities aligned with industry-specific dynamics in their respective markets. Additionally, this separation is expected to unlock significant value for Conduent and its shareholders. Conduent intends to execute the separation through whichever path maximizes shareholder value.

“For the past several years, we have been diligently fortifying the foundation of our business, significantly improving the quality of service, streamlining operations, and strengthening our financial position,” said Cliff Skelton, President and Chief Executive Officer. “Based on the progress we’ve made and the stability and credibility the Transportation business has established with its client base, we are confident that the time is right to pursue a separation. This initiative is the next logical step in our plan to further simplify and strengthen the company.”

Skelton continued, “The Transportation business is driven by different underlying macroeconomic trends with a discrete client base and growth profile. We believe this separation will unlock significant value by dislodging any potential conglomerate discount and enabling a more focused approach to capital and resource allocation.”

Benefits of the SeparationConduent’s Commercial and Government businesses will continue to deliver business services and solutions through differentiated technology platforms that enable increased efficiencies, cost savings, and value at scale for both businesses and governments. With 30 years of expertise, deep domain knowledge, and understanding of its clients’ operations, Conduent has established itself as a leader in areas such as customer experience, business operations solutions, healthcare, government payments, and claims processing, and is a trusted partner to its clients. Following the separation, Conduent would still be among the top 5 largest diversified outsourcing services employers in the Fortune 1000, continuing to provide essential services and solutions to clients and end users around the globe.

The Transportation business will continue to deliver solutions to a large and stable client base of global transportation agencies in more than 20 countries. Clients rely on the Transportation business as a key partner in solving the next generation of mobility challenges with innovative solutions. This business will continue to help public sector transportation agencies capture revenue while improving traveler experiences, increasing public safety and accessibility, reducing congestion and emissions, and modernizing multi-modal travel. These opportunities span the smart-city and infrastructure ecosystem, including modernization investments in areas such as all-electronic tolling, contactless payments in transit, dynamic pricing in curbside management, and analytics-based public safety and congestion management solutions.

Additional details will be disclosed as Conduent finalizes its separation plans. Until a separation is complete, Conduent will continue to operate as a single company.



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