Representing approximately US$278 million of the company’s 2017 revenue, these businesses are part of a previously announced plan to divest up to US$500 million in revenue in 2018 associated with non-core assets across the company.
The deal also includes Conduent’s human resource consulting and outsourcing businesses in Canada and the UK.
Conduent will retain certain assets connected to its core technology platform business, including Human Resources Outsourcing (HRO), Total Benefits Outsourcing (TBO), BenefitWallet, and RightOpt.
“With this divestiture, our Human Resource Services business is now built around a diverse set of services supported by a portfolio of digital business platforms,” said Christine Landry, Group Chief Executive, Conduent, Consumer & Industrials.
“Together with our recent leadership hires and platform improvements, we are well positioned to help our clients modernize their HR processes, create seamless experiences for their employees and accelerate our growth in HR services.”
Miami-based H.I.G. Capital holds stake in several tech solution providers, including CXtec, Milestone Technologies, and Teracai. Last year, it has also bought NCI, which provides solutions to the US government.
It seems Conduent wants to focus on digital business platforms and other core operations. Reports say Conduent HR Services is currently the 10th biggest pensions consulting business in the UK in terms of revenues.
The deal is subject to regulatory approval and is expected to be complete in the second half of this year.