Conduent sells curbside, safety units to Modaxo
NEW, JERSEY, UNITED STATES — Business services provider Conduent Incorporated (Conduent) is set to sell its Curbside Management Solutions and Public Safety Solutions businesses for approximately $260 million to tech firm Modaxo.
Conduent President and Chief Executive Officer Cliff Skelton said that the earnings from the sale will be used to reduce the firm’s debt.
“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,” Skelton said.
In September 2023, Conduent entered into an agreement to transfer BenefitWallet’s Health Savings Account (HSA) portfolio to HealthEquity Inc. (HealthEquity). The purchase price is pegged at approximately $425 million for the transfer of all BenefitWallet HSA accounts.
Today we announced an agreement to sell our Curbside Management Solutions and Public Safety Solutions businesses to Modaxo, demonstrating continued progress in streamlining our portfolio and increasing focus on our core capabilities to drive growth. https://t.co/sU7SWPR4BQ pic.twitter.com/DM5JClI6NK
— Conduent (@Conduent) December 28, 2023
This also includes approximately 665,000 customer accounts and their approximately $2.7 billion of HSA assets to HealthEquity. BenefitWallet is Conduent’s HSA arm.
The deal between Conduent and Modaxo is expected to close in the first quarter of 2024, with a portion of the proceeds to be paid in the first quarter of 2025. The closing is subject to the satisfaction of customary closing conditions and regulatory approvals.
Conduent’s two businesses, which operate independently from the rest of Conduent’s transportation arms, support approximately 130 government clients worldwide.
Modaxo is Constellation Software Inc.’s (Constellation) People Transportation Division. Constellation is a Toronto-based firm acquires, manages, and builds vertical market software businesses.
