Conduent, a business process outsourcing firm that spun off from Xerox in 2016, is reportedly exploring a sale after attracting acquisition interest, according to sources familiar with the matter. The Florham, New Jersey-based company is said to be working with a financial advisor as it engages in discussions with potential buyers, including private equity firms. These sources requested anonymity due to the confidential nature of the talks.
Should the discussions lead to a successful outcome, a deal could be finalized in the coming weeks, the sources added. In response to the news, Conduent’s shares surged by more than 24% on Friday, reaching a 52-week high before retreating slightly, bringing the company’s market value to over $700 million.
Conduent did not immediately respond to requests for comment.
Originally spun off from Xerox, Conduent provides business services across sectors such as government, commercial, and transportation. It holds contracts with federal and state agencies, including the U.S. Secret Service. The company offers technology solutions that incorporate cloud computing, automation, artificial intelligence, and machine learning, aimed at helping businesses with functions like human resources, cost-cutting, and payment processing.
Since becoming independent, Conduent has faced challenges competing against larger outsourcing providers. As of Thursday’s market close, the company had lost nearly 75% of its value since its shares began trading in January 2017.
Conduent is scheduled to report its fourth-quarter earnings on February 12.
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