Quarterhill Buys Conduent Tolling for $70M

Quarterhill Inc. is set to significantly bolster its intelligent transportation capabilities with the acquisition of Conduent's tolling division for $70 million in cash. This strategic move, announced on June 30, 2026, marks a pivotal step for Quarterhill in expanding its footprint within the critical intelligent transportation and enforcement solutions sector.

The acquired business processes an impressive volume of over 14 million tolling transactions daily across the United States and the United Kingdom. Its operations encompass advanced all-electronic tolling technology, roadside and back-office processing, image review, and violation enforcement systems, alongside robust analytics and data management. This extensive operational scale and established presence in key markets provide Quarterhill with immediate, substantial revenue-generating assets and a deep base of recurring transaction volume.

For Conduent, this divestiture is a deliberate move to streamline its operations and sharpen its focus on core business services. The company has been actively simplifying its portfolio, with this transaction following closely on the heels of a previously announced agreement to sell its public transit business. Both deals are anticipated to conclude before the close of 2026, signaling a clear strategic pivot towards greater operational concentration.

Beyond the cash consideration, Conduent will also receive a 7% equity stake in Quarterhill, underscoring a vested interest in the future success of the combined entity. Furthermore, Conduent secures valuable governance rights, including registration rights and board observer privileges, allowing for continued strategic input and oversight. Quarterhill will assume the majority of liabilities associated with the tolling business, including all surety bond obligations, simplifying the transition for both parties.

The intelligent transportation systems market, a segment experiencing robust growth driven by urbanization and the need for efficient mobility solutions, is projected to reach significant valuations in the coming years. This acquisition positions Quarterhill favorably within this expanding market, enhancing its ability to offer comprehensive solutions to government agencies and transportation authorities. The integration of Conduent's established tolling infrastructure is expected to create synergistic opportunities and drive further innovation in traffic management and enforcement technologies.

This transaction highlights a broader trend of portfolio optimization within the business services and technology sectors, as companies seek to unlock value by concentrating on their most profitable and strategically aligned operations. The $70 million valuation reflects the established nature and consistent revenue streams of the tolling business, a critical component of modern transportation infrastructure.