Why SaaS Company Conduent's Shares Are Surging Today

Zinger Key Points
  • Conduent agrees to sell its Casualty Claims Solutions business to MedRisk.
  • The sale, for $240 million includes Conduent's workers' compensation and auto casualty bill review solutions.

Conduent Inc CNDT shares are trading higher after the company signed an agreement to sell its Casualty Claims Solutions business to MedRisk.

MedRisk is a managed care organization dedicated to the physical rehabilitation of workers’ compensation patients.

The $240 million cash deal includes Conduent’s workers’ compensation and auto casualty bill review solutions. It also includes the processing of medical bills and clinical services, and its portfolio of Strataware bill review software products.

In 2023, the business, with approximately 100 clients across multiple markets, processed approximately 29 million medical bills. Conduent employees in the Casualty Claims Solutions business will join MedRisk as part of the transaction.

The transaction is expected to be completed in the third quarter of 2024.

“This transaction is an additional example of the significant progress we have made in our strategy to streamline our portfolio while increasing our focus on core capabilities to fuel Conduent’s growth,” said President and CEO Cliff Skelton.

Conduent reported a first-quarter FY24 sales decline of 0.1% year-on-year to $921 million, beating the analyst consensus estimate of $895 million.

Adjusted EPS of $(0.09) beat the consensus estimate of $0.00.

Earlier in the week, the company had announced a collaboration with tech giant Microsoft Corp MSFT to use the latter’s Azure OpenAI Service to leverage generative AI strength to drive quality, productivity, and faster cycle times for its global clients.

Also, Conduent recently completed the sale of its Curbside Management Solutions and Public Safety Solutions businesses to Modaxo, a division of Constellation Software Inc.

Price Action: CNDT shares are trading higher by 5.71% at $3.89 at the last check Friday.

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsAsset SalesMoversGeneralBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!