Investing.com -- Shares of Conduent Inc (NASDAQ:CNDT) surged 14.6% following reports that the business process outsourcing firm is exploring a sale after receiving acquisition interest, as reported by Reuters. According to sources close to the situation, the Florham Park, New Jersey-based company has engaged a financial adviser to facilitate discussions with potential buyers, including several private equity firms.
The news suggests that a deal could be reached in the coming weeks, although Conduent has not publicly commented on the matter. The company, which was spun off from Xerox (NYSE:NASDAQ:XRX) in 2016, specializes in services for commercial, government, and transportation sectors, and boasts technological capabilities in cloud computing, automation, artificial intelligence, and machine learning.
Since its independence, Conduent has faced challenges competing with larger outsourcing service providers, resulting in a significant decline in its share value since January 2017. Despite these difficulties, the company has maintained contracts with various federal and state government agencies, including the U.S. Secret Service.
Conduent’s market value, which includes debt, is estimated at around $1.1 billion. The firm is set to report its fourth-quarter earnings on February 12, which will provide further insight into its financial health and performance. The potential acquisition interest appears to underscore the value of Conduent’s offerings and its strategic importance in the outsourcing industry.
Investors are closely monitoring the situation, as a successful sale could have significant implications for Conduent’s future and its position in the market. The stock movement today reflects the market’s reaction to the potential changes on the horizon for Conduent.
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