Florham Park-based Conduent said it is looking to either sell or spin-off its transportation business.
Conduent believes the separation will enable its commercial, govt. and transportation businesses to benefit from more focused operating models and capital allocation priorities aligned with industry-specific dynamics in their respective markets.
The transportation business serves public sector transportation agencies in over 20 countries.
“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,” Conduent CEO Cliff Skelton said.
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.
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.
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.