Business
Conduent to Pursue Separation of Transportation Business
Conduent is committed to executing either a sale or a spin-off of its Transportation business Separation will maximize shareholder value by simplifying
About this update from Conduent Incorporated
[{"type":"text","content":"Conduent is committed to executing either a sale or a spin-off of its Transportation business Separation will maximize shareholder value by simplifying Conduent’s business model, creating two separate businesses with dedicated focus on providing exceptional outcomes for clients in their distinct markets FLORHAM PARK, N.J., April 07, 2022 (GLOBE NEWSWIRE) -- 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 know...