Beyond the initial cash payment, Conduent will secure a 7% stake in Quarterhill, along with board observer and registration rights. The acquisition consolidates a specialized provider of end-to-end government tolling solutions into Quarterhill’s operations, creating a combined backlog estimated at $2 billion. Quarterhill anticipates the integration will roughly triple its existing tolling revenue.

Quarterhill Board Chairman Rusty Lewis emphasized that the deal provides immediate scale and access to established agency relationships. Meanwhile, Conduent Chief Executive Harsha Agadi stated the divestiture is part of a broader strategy to simplify the company’s holdings and bolster its financial base. This follows Conduent’s earlier decision in May to offload its public-transit business to Modaxo. The parties expect the current transaction to close before the end of the year.