ASGN Inc. to buy Boston consultancy for up to $72M cash

ASGN is parent company of Glen Allen-based Apex Systems LLC

Published September 2, 2020 by Sydney Lake

ASGN Inc., parent company of Glen Allen-based recruiting firm Apex Systems LLC, announced Tuesday it will acquire Boston-based consultancy LeapFrog Systems LLC for up to $72 million in cash.

The goal of the transaction is to grow the companies’ commercial consulting business, adding services for financial services, insurance and health care clients. LeapFrog anticipates approximately $33.3 million in revenues for 2020 and double-digit revenue growth in 2021, according to ASGN, which is moving its headquarters from California to Henrico County in October.

“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,” ASGN President and CEO Ted Hanson said in a statement. “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.”

Under the acquisition, LeapFrog will become a part of ASGN’s Apex Systems division. Calabasas, California-based tech and professional services company

ASGN Inc. announced in June it would invest $5 million on moving its headquarters to Henrico, where it will employ 121 people. ASGN will also spend $7.4 million to expand its operations to Virginia Beach, where it will employ 147 people, and Roanoke, where it will employ 74 workers. The company anticipates the move will create an additional 358 jobs across the state.

“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 in a statement. “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.”