ASGN Inc. (NYSE: ASGN) agreed to sell its Oxford Global Resources business unit to an affiliate of H.I.G. Capital, a global alternative investment firm. The IT and professional staffing provider also announced it has acquired the Infor business unit of Avaap and increased its financial estimates for the second quarter of 2021.

ASGN on Wednesday entered into a definitive purchase agreement to sell Oxford — which provides high-end consulting talent for niche commercial IT, healthcare, life sciences and engineering clients — to the H.I.G. affiliate for $525 million in cash. The sale is expected to be completed after the receipt of anti-trust approvals and the proceeds, net of income taxes, are anticipated to be approximately $400.0 million. Oxford accounted for approximately 11.6% of ASGN’s consolidated revenue and 10.8% of its consolidated adjusted EBITDA for the three months ended March 31.

ASGN acquired Oxford in 2007, and its sale represents a “pivotal moment” for ASGN, according to President and CEO Ted Hanson.

“We have taken this opportunity as our global economy improves and the M&A market remains productive, to sell Oxford and singularly focus our capital deployment on our high growth IT services and solutions,” Hanson said. “All proceeds from this transaction will add to the capital we have available to deploy toward our highest growth, highest margin units that drive our long-term strategy forward, including our commercial consulting practice, which has reached an annual revenue run rate of roughly $470 million, and our federal government business, which has now surpassed $1 billion in revenues.”

ASGN on June 30 also acquired the enterprise resource planning, healthcare and manufacturing consulting business unit of Avaap, an enterprise solutions integrator, for $86 million in cash. The Infor Business Unit includes about 240 employees who are now part of Apex Consulting Services.

The acquisition enables ASGN to provide its healthcare and consumer and industrials customers with new and expanded advisory and managed service offerings, while also enhancing the offerings the Avaap team can provide their current customers now that they are a part of Apex and ASGN.

“We believe that M&A offers the highest return on invested capital for all of our stakeholders, enabling us to bring in new capabilities with industry domain expertise that will position ASGN as a leading provider of IT services and solutions to the commercial and government marketplaces,” Hanson said in prepared remarks.

As a result of the Oxford divestiture, ASGN will now be reporting only two business segments: CyberCoders, formerly part of the Oxford segment, will join Apex Systems and Creative Circle in the company’s newly created commercial segment, while ECS will now comprise the company’s federal government segment.

As a result of the transactions, ASGN revised guidance estimates upward for the second quarter and restated historical results for Q1 of this year and Q2 of last year to present the Oxford business as discontinued operations.

ASGN increased guidance estimates for continuing operations for the second quarter, which exclude the Oxford business, primarily related to the higher-than-expected operating performance of its commercial segment and approximately 10.0% growth in its federal government segment. For the second quarter, ASGN now estimates year-over-year revenue growth from continuing operations of 15.4% to 16.6%. which is up from the previous estimate of 11.8% to 14.2%. It is estimating revenue from continuing operations of $960.0 million to $970.0 million.