IT Staffing Report: Oct. 1, 2020

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ASGN acquires LeapFrog Systems for $72 million plus stock

ASGN Inc. (NYSE: ASGN) announced it is paying $72.0 million to acquire LeapFrog Systems Inc., a Boston-based technology consultancy focused on digital transformation. The deal also calls for 14 LeapFrog employees to receive restricted stock unit awards in ASGN totaling approximately 42,000 shares.

By buying LeapFrog, ASGN aims to bolster its digital transformation solutions offering in the financial services, insurance and healthcare industries. LeapFrog is joining ASGN’s Apex Systems division.

“Their industry expertise, geographic location and unique digitization services strengthen ASGN’s digital roadmap solutions,” ASGN President and CEO Ted Hanson said. “We have been witnessing an accelerating trend toward digital transformation, making now the ideal time to welcome LeapFrog to ASGN.”

Digital transformation is a buzzword, but definitions include using technology to create or modify business processes and other enterprise procedures.

LeapFrog anticipates 2020 revenue of $33.3 million and double-digit revenue growth in 2021.

“ASGN’s reputation as a fast-growing technology services firm with nationwide reach and access to over 60% of the Fortune 500 will help us grow from a regionally successful player to a national competitor,” LeapFrog CEO Bob Malone said.