Business service provider Conduent has sold its U.S.-based human resource consulting and actuarial business to H.I.G. Capital, a global private equity investment firm. While no price was given for the sale, these businesses represented roughly $278 million of Conduent’s 2017 revenue. The deal also includes its consulting and outsourcing businesses located in Canada and the U.K.
The decision to sell the HR consulting and actuarial business, formerly known as Buck Consultants, was based on Conduent’s focus on “managing mission-critical aspects of its clients’ operations,” including “automating and streamlining data-intensive, repeatable, individualized interactions supported by a range of industry-specific technology platforms,” according to Christine Landry, group chief executive of consumer & industrials at Conduent.
“The decision aligns with our goal, which is to provide a range of business services that are built on leading technology platforms and just investing some of the non-core assets,” she says. “We’re keenly focused on large enterprise customers and contracts that allow us to enable our operating leverage and scale and to better expand across business lines within the Conduent business.”
The Florham Park, N.J.-based Conduent will retain its line of human resources technology platforms, including Human Resources Outsourcing; Total Benefits Outsourcing; BenefitWallet, an HSA and HRA solution: and RightOpt, a private health insurance exchange.
Conduent is definitely not leaving the HR services space, Landry says.
“We are staying very engaged in our technology-based employer benefit solutions, which are BenefitWallet and RightOpt,” she says. “We are also retaining all the services provided through our platforms as well as the services that are known as our Seven Solutions and our dependent eligibility verification programs.”
Earlier this year, Conduent announced plans to divest up to $500 million in revenue in 2018 associated with non-core assets across the company.
Looking forward, Landry says that Conduent will focus on new technology opportunities such as offering data transparency and other employee benefit and HR services.
“We have approved investments in our HRS platforms but in terms of the year ahead, it is really focused on advancing the technology platforms and driving growth and helping our customers streamline and automate their data intensive, repeatable individual interactions all underpinned by our technologies,” she says.
“Growth in those areas is absolutely part of the strategy, and we’ve invested dollars in all of those platforms.”
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