Conduent Inc CNDT disclosed a definitive deal to sell its Curbside Management Solutions and Public Safety Solutions businesses to Modaxo, a division of Constellation Software Inc.
The sale is for an enterprise value of approximately $260 million, including the assumption of certain indebtedness, and is subject to customary purchase price adjustments.
The purchase price represents about eight times the disposed businesses' trailing twelve months of adjusted EBITDA.
The transaction is expected to close during the first quarter of 2024, with a portion of the proceeds paid in the first quarter of 2025.
Cliff Skelton, Conduent President and CEO said, "This divestiture demonstrates continued progress in streamlining our portfolio to drive increased focus on our core capabilities and enable synergistic growth to create shareholder and client value."
"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."
Last month, CNDT reported a Q3 FY23 revenue decline of 4.6% Y/Y to $932 million, beating the analyst consensus of $915 million, and adjusted EPS loss of $(0.09) missed the street view of $0.02.
Price Action: CNDT shares are trading higher by 1.36% at $3.74 on the last check Thursday.
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