By Grace Yoon
Conduent said it agreed to sell its tolling business to Quarterhill for $70 million in cash.
Quarterhill shares were up 45% to 2.50 Canadian dollars in Toronto.
As part of the transaction, digital business-solutions provider Conduent would receive a 7% interest in Quarterhill, a Toronto provider of intelligent transportation systems. Conduent would also get registration rights and board observer rights.
Quarterhill said that, following the acquisition, it and the tolling business--which provides end-to-end tolling solutions for government transportation agencies--would together have approximately $2 billion of combined backlog. Quarterhill also expects the transaction to roughly triple its tolling revenue.
Quarterhill Board Chairman Rusty Lewis said the acquisition would bring scale, long-term agency relationships and proven technology to the company.
Conduent Chief Executive Harsha Agadi said that, by simplifying its portfolio, the company will be able to focus on its core businesses and strengthen its financial foundation.
The deal is expected to close before year-end.
Conduent also agreed to sell its public-transit business to Modaxo in May.
Write to Grace Yoon at grace.yoon@wsj.com