Conduent Incorporated has completed the sale of its Public Transit Business to Modaxo Group Inc. The transaction, originally announced on May 21, 2026, was finalized on October 1, 2026. Conduent Business Services, LLC, the company's subsidiary, sold the assets to Modaxo France Holdings SAS, which is now the sole buyer under the amended agreement.
The sale includes Conduent’s Transit Fare Management and Fleet Management Solutions businesses, with operations spanning North America, Europe, Australia, the Middle East, and Latin America. Conduent received $140 million in cash at closing. An additional $15 million was transferred to the buyer at the time of the transaction.
The total value of the deal is $164 million, subject to customary adjustments. However, the buyer retained holdbacks totaling $24 million at closing. These funds are being held to secure potential net tangible asset adjustments, target completion dates for a former customer, and other closing adjustments. The buyer has one year to release the $10 million holdback for asset adjustments.
Conduent plans to use the net proceeds of $125 million to repay its revolving credit facility. The company also expects to incur $3 million in transaction costs and $7 million in income taxes related to the sale in the fourth quarter of 2026.
In addition to the completed sale, Conduent amended the original Equity Interest Purchase Agreement on September 30, 2026. The amendment removed Modaxo USA Holdings, Inc. as a party to the agreement. It also provided for the sale of certain assets located in India to a subsidiary of the French buyer, contingent upon receiving required regulatory approval.
Conduent stated that there is no material relationship between the company and the French buyer, aside from the transaction and transition services arrangements.
