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Conduent Inc. has entered into a definitive agreement to sell its public transit business to Modaxo for $164 million. 

The Florham Park-based technology company made the announcement May 21. 

An operating unit of Conduent Transportation, Conduent Transport Solutions Inc. includes the transit fare management and fleet management solutions businesses, according to a filing with the U.S. Securities and Exchange Commission. 

Its services include: 

• Fare collection systems 
• Fleet management systems 
• Payment and revenue management platforms 
• Other hardware‑enabled mobility systems

Streamlining its portfolio

Conduent President and CEO Harsha Agadi said the sale will help simplify the company’s portfolio and allow the firm to focus on its core businesses and strengthen its finances. In 2022, Conduent sold its Midas Suite of Solutions to a Houston-based buyer for $340 million.

“Modaxo‘s technology focus makes it a strong strategic fit for the Public Transit business and those it serves,” Agadi added. “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.” 

The deal is expected to close before the end of 2026, subject to customary approvals. MSN noted Conduent’s shares jumped 12% following the acquisition announcement Thursday.

According to Conduent, it will retain its tolling business, which provides technology covering all‑electronic tolling, image review, violation enforcement, analytics and more. It supports more than 14 million tolling transactions per day. 

Modaxo is a Toronto-based transportation software company that aims to “acquire, strengthen and grow technology companies that enable the daily movement of people.” Earlier this year, it acquired the Aerivo brand, which provides airport terminal systems, from ADB Safegate.