Conduent is selling off its commercial vehicle operations as part of its planned divestiture of up to a half a billion dollars in assets, the company said in a statement.
Conduent said its commercial vehicle operations business -- which generated about $70 million in revenue in 2017 – is expected to be purchased by Alinda Captial Partners. The agreement is subject to regulatory approval and closing conditions.
"As we continue on our path focused on our core business to drive profitable growth and divest non-core assets, we made the decision to sell our CVO business," Conduent president Dave Amoriell said in a statement. "This sale will enable us to increase focus on advancing our technology platforms that will best serve our large enterprise customers and scalable business relationships."
Xerox created Conduent when it spun off its business services division in 2016. The company formerly known as Affiliated Computer Serivces was purchased by Xerox for $6 billion from founder Darwin Deason. ACS was known for creating electronic toll collection systems and photo traffic enforcement solutions prior to being owned by Xerox.
Conduent sold the former Dallas headquarters of ACS in 2017 which resulted in $24 million in income and it has closed approximately 130 offices in locations around the world, the company has previously said.
Conduent has said it is evaluating all of the assets it inherited when it split from Xerox, with the goal of creating a leaner organization that's more targeted to their core operations. The Florham Park, N.J.-based company said it wants to achieve $700 million of cost savings by the end of 2018,
The company recently announced that it was selling the non-core consulting and actuarial segment – once known as Buck Consultants – to H.I.G. Capital, a global private equity company with offices in Miami, Boston and New York.
In a statement, Conduent said that after that sale it will be focused on digital business platforms, as well as retaining Human Resources Outsourcing, Total Benefits Outsourcing, BenefitWallet and RightOpt.
Citigroup Global Markets Inc. is serving as exclusive financial advisor and Cravath Swaine & Moore LLP is serving as legal counsel to Conduent.