Shares of Conduent Inc. (NASDAQ: CNDT) jumped 14.6% following reports that the business process outsourcing firm is exploring a sale after receiving acquisition interest. The Florham Park, New Jersey-based company has reportedly engaged a financial adviser to facilitate talks with potential buyers, including private equity firms, according to sources familiar with the situation.
While Conduent has not publicly commented on the matter, the news indicates that a deal could be reached in the coming weeks. The company, which was spun off from Xerox (NYSE: XRX) in 2016, offers services to the commercial, government, and transportation sectors and is known for its technological capabilities in cloud computing, automation, artificial intelligence, and machine learning.
Since becoming independent, Conduent has struggled to compete with larger outsourcing providers, leading to a substantial decline in its share value since its stock debut in January 2017. However, the company has continued to maintain contracts with various federal and state government agencies, including the U.S. Secret Service.
Conduent’s market value, including debt, is estimated to be around $1.1 billion. The firm is scheduled to report its fourth-quarter earnings on February 12, which will offer more insight into its financial health. The potential acquisition interest highlights the value of Conduent’s offerings and its strategic role in the outsourcing industry.
Investors are keenly watching the developments, as a successful sale could have significant ramifications for the company’s future and its market position. The stock movement today reflects investor optimism regarding the potential changes ahead for Conduent.
Related topics: