Conduent Incorporated, the global business solutions and technology provider headquartered in Florham Park, announced it has entered into a definitive agreement to divest its Public Transit business unit to Modaxo for $164 million.
The transaction is expected to close before the end of 2026, pending standard closing conditions and regulatory approvals.
The sale includes Conduent’s Transit Fare Management and Fleet Management Solutions branches, which provide digital infrastructure such as fare collection systems, payment platforms, and hardware-enabled mobility tools to transport agencies worldwide. Notably, Conduent’s transit unit holds key regional contracts, including system maintenance for NJ Transit.
According to company leadership, the $164 million divestiture is part of a broader corporate “fix, sell, or grow” strategy aimed at streamlining operations and optimizing the company’s capital structure.
“This transaction advances our strategy to simplify the portfolio, sharpen focus on our core businesses, and strengthen our financial foundation,” Harsha Agadi, Conduent president and chief executive officer said. “Consistent with the disciplined execution outlined in Q1, it further positions Conduent to deliver sustainable, long-term value for our shareholders, clients, and employees.”
Agadi added that Modaxo, a global organization strictly focused on transportation technology, represents a strong strategic fit for the transit division’s existing clients and workforce.
While Conduent is offloading its public transit operations, the company will maintain ownership of its highly active Tolling business segment. The remaining tolling unit provides critical infrastructure for all-electronic tolling, violation enforcement, and back-office roadside processing—a segment that currently processes more than 14 million daily transactions.
Conduent, which originally spun off from Xerox in 2017, employs a global team of roughly 48,000 associates. Additional financial details regarding holdbacks and transition milestones associated with the $164 million deal have been outlined in the company’s 8-K filing with the U.S. Securities and Exchange Commission (SEC).
