ASGN Inc. (ASGN) to Acquire TopBloc

ASGN Incorporated (NYSE: ASGN), a leading provider of IT services and professional solutions across the commercial and government sectors, announced today that it has signed a definitive agreement to acquire TopBloc, LLC (“TopBloc” or “the Company”), a leading, high-growth, tech-enabled Workday consultancy, for $340 million in cash and equity. The transaction, which is subject to Hart-Scott Rodino (HSR) and other customary closing conditions, is expected to close in the first quarter of 2025.

Founded in 2016 and headquartered in Chicago, Illinois, TopBloc provides Workday deployment services and on-demand support in areas ranging from human capital management to financial and payroll management. With more than 300 Workday installations over the past five years, TopBloc has become a preferred certified Workday Services Partner for medium and large enterprise customers across North America. TopBloc’s highly experienced team of over 500 consultants will become part of ASGN’s Consulting Services.

“The acquisition of TopBloc aligns perfectly with our strategic vision for continued growth in the IT consulting sector,” said ASGN’s Chief Executive Officer, Ted Hanson. “The increasing demand for ERP solutions among our customers is clear, and, with TopBloc, ASGN not only becomes a leader in delivering these critical capabilities through the Workday platform, but we also gain immediate additional scale in our solution offerings.”

Mr. Hanson continued, “The synergies between our companies are robust; TopBloc’s innovative solutions will seamlessly integrate across our commercial consulting enterprise customer base, while also presenting significant opportunities within the federal government sector. We are enthusiastic about the future and look forward to collaborating closely with TopBloc to build a world-class Workday consulting practice.”

Workday has emerged as a leader in enterprise cloud applications for finance and human resources, with over 70 million users worldwide and more than 60 percent of the Fortune 500 as customers. Recently named a leader in Gartner’s Magic Quadrant for cloud ERP, Workday estimates its total addressable market at approximately $160 billion with significant growth opportunity. Workday reported 15.8 percent subscription revenue growth year-over-year in the third quarter of fiscal 2025 and is anticipating similar, durable annual growth rates through fiscal year 2027.

Speaking of the opportunities for continued growth, TopBloc Chief Executive Officer, Christopher Skinner, noted, “TopBloc is excited to partner with ASGN as we continue to grow our Workday practice. Our acquisition presents great opportunities to leverage ASGN’s extensive client base, enabling us to demonstrate our unique implementation strength while enhancing our ability to serve the expanding Workday market. This is the ideal alignment of two companies that not only share a strong work ethic and enduring dedication to top-notch customer service, but that also possess very similar cultures. Together, we will strategically scale our operations for even greater success."

TopBloc’s diverse client base spans six industry verticals, all complementary to that of ASGN. With a robust pipeline and longstanding client relationships, the Company is expected to generate approximately $150 million in revenues for full year 2025, which represents year-over-year revenue growth in excess of 20 percent. TopBloc also anticipates EBITDA margins in the high teens for 2025. TopBloc’s results will be included in ASGN’s results from the date of the close of the acquisition and will be immediately accretive to ASGN on an adjusted basis. Revenue and margin estimates do not include any revenue synergies related to ASGN’s current pipeline of opportunities.

Additional information on the acquisition will be provided tomorrow, February 5, 2025, on ASGN’s Q4 and FY 2024 earnings conference call at 4:30 p.m. ET. The dial-in number for this conference call is 877-407-0792 (+1-201-689-8263 outside the United States). Please reference Conference ID number 13750060. A webcast link for the call will also be available on ASGN’s investor relations website.

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