Conduent to divest public transit business to Modaxo for $164 million

Conduent has entered into an agreement to sell its Public Transit business to Modaxo for $164 million, with closing expected before the end of 2026.

The transaction marks a structural change in Conduent’s transportation portfolio, separating its transit-focused operations from its tolling activities.

The agreement, announced on May 21, 2026, includes the divestment of the company’s Transit Fare Management and Fleet Management Solutions businesses, which together form the Public Transit unit.

Conduent sells transit fare business to Modaxo

The Public Transit business being transferred comprises a portfolio of technology systems supporting public transport operations globally. These include fare collection systems, fleet management platforms, payment and revenue management solutions, and associated hardware-enabled mobility systems. The unit operates across multiple international markets, delivering integrated solutions for transit agencies.

Under the terms of the agreement, Modaxo will acquire the full scope of these activities. The transaction remains subject to customary closing conditions and regulatory approvals, with both companies indicating completion before the end of 2026.

Following the divestment, Conduent will retain ownership of its Tolling business segment. This division provides technology systems for all-electronic tolling operations, including roadside infrastructure, back-office processing, image review, violation enforcement, and analytics.

According to company data, the tolling platform currently supports more than 14 million transactions per day, representing a core component of Conduent’s ongoing transportation operations.

“This transaction advances our strategy to simplify the portfolio, sharpen focus on our core businesses, and strengthen our financial foundation. Consistent with the disciplined execution outlined in Q1, it further positions Conduent to deliver sustainable, long-term value for our shareholders, clients, and employees,” said Harsha V. Agadi, Conduent President and Chief Executive Officer. “Modaxo’s technology focus makes it a strong strategic fit for the Public Transit business and those it serves. We remain committed to delivering outstanding quality and performance for our Transportation clients as we prepare for closing and ensure a seamless transition for clients and employees.”