ASGN Acquires LeapFrog Systems for $72 Million
This is M&A deal 354 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
LeapFrog offers digital capacity on-demand, including strategy and implementation services. LeapFrog says it anticipates approximately $33.3 million in revenues for 2020, along with double-digit revenue growth in 2021. The company is primarily focused on providing enterprise-scale digital business transformation services to Fortune 500 clients.
ASGN says the acquisition will bolster its capabilities in digital innovation and enterprise solutions for its financial services, insurance, and healthcare clients. LeapFrog will become part of ASGN’s Apex Systems division, a Calabasas, California-based tech and professional services company, ASGN announced.
ASGN’s LeapFrog Acquisition: Executive Insight
ASGN President and Chief Executive Officer, Ted Hanson, commented on the deal:
“I am very pleased to announce the acquisition of LeapFrog, which further enhances our commercial consulting capabilities. At ASGN, we are committed to delivering value to all of our stakeholders by strategically growing our business in areas of increasing customer demand, while at the same time scaling our consultative capabilities in the key industry segments we serve. The acquisition of LeapFrog fits perfectly with each of these goals. Their industry expertise, geographic location and unique digitization services strengthen ASGN’s digital roadmap solutions. We have been witnessing an accelerating trend toward digital transformation, making now the ideal time to welcome LeapFrog to ASGN.”
LeapFrog’s Chief Executive Officer, Bob Malone, added:
“We are excited to join Apex Systems and together scale LeapFrog’s Digital Business Transformation offerings to a significantly larger group of customers. ASGN’s reputation as a fast-growing technology services firm with nationwide reach and access to over 60 percent of the Fortune 500 will help us grow from a regionally successful player to a national competitor. By leveraging ASGN’s just-in-time recruiting capabilities and large candidate database, we will be able to quickly scale our projects while continuing to provide the exceptional service our customers have come to expect. Both LeapFrog and Apex Systems have always revolved around doing what is in the best interests of our employees and our customers, and this transaction is no different.”
ASGN’s Growth History
ASG’s previous M&A play saw the company pay $67 million in cash for Intersys Consulting in October 2019.
Founded in 1985, ASGN is headquartered in Calabasas, California and has more than 3,600 employees. The company is the second-largest IT staffing firm in the United States, according to Staffing Industry Analysts.