ASGN Incorporated Announces Closing of the Acquisition of TopBloc

Rhea-AI Summary

ASGN Incorporated (NYSE: ASGN) has completed its previously announced acquisition of TopBloc, for $340 million in cash and equity. The acquisition integrates TopBloc's team into ASGN's Consulting Services, strengthening ASGN's position in ERP and Workday marketplace solutions.

Additionally, Shiv Iyer has officially assumed the role of President, succeeding Rand Blazer who transitions to Executive Vice Chairman. Iyer, formerly leading Accenture's Consulting and Industry X solutions across the Americas, brings extensive consulting experience to ASGN.

As part of the closing, ASGN is granting restricted stock unit (RSU) awards to 41 key TopBloc employees, covering approximately 150,000 shares. The company also awarded Iyer 44,162 RSUs and will provide an additional $2.875 million in performance-based RSUs.

Positive

• Strategic acquisition strengthening ERP and Workday marketplace presence
• Experienced leadership addition with Shiv Iyer as President
• Employee retention strategy through RSU grants to key TopBloc personnel

Negative

• Significant cash and equity outlay of $340M for acquisition
• Additional share dilution from RSU grants

Insights

Financial Analyst

ASGN's acquisition of TopBloc for $340 million represents a strategic expansion in the enterprise technology services sector. This transaction - approximately 12% of ASGN's $2.9 billion market cap - strengthens the company's position in the growing Workday implementation and ERP consulting markets.

The acquisition delivers two significant advantages: First, it expands ASGN's capabilities in high-demand enterprise solutions, specifically targeting the critical ERP platforms that manage financial and human capital data. Second, it strategically positions ASGN at the intersection of traditional ERP systems and emerging GenAI applications that require well-structured data foundations.

The equity component of this deal reveals a thoughtful retention strategy. The company granted restricted stock units to 41 key TopBloc employees covering approximately 150,000 shares with multi-year vesting schedules stretching to four years. This structure demonstrates a focus on long-term integration and talent retention, critical factors for service-based acquisitions.

The concurrent leadership transition to Shiv Iyer, who previously led Accenture's Consulting practice across the Americas, appears strategically aligned with this acquisition. His enterprise consulting background suggests ASGN may be positioning for larger, more complex engagements leveraging these expanded capabilities across their existing customer base.

This acquisition represents meaningful progress in ASGN's stated strategy of aligning with in-demand solutions and technology partnerships, potentially creating cross-selling opportunities throughout their customer portfolio.

Shiv Iyer Officially Becomes President

RICHMOND, Va.--(BUSINESS WIRE)-- ASGN Incorporated (NYSE: ASGN), a leading provider of IT services and professional solutions across the commercial and government sectors, announced today that it has closed its previously announced acquisition of TopBloc, LLC (“TopBloc” or “the Company”) for a total consideration of $340 million in cash and equity. TopBloc’s experienced team has become part of ASGN’s Consulting Services.

“We are pleased to announce the successful closing of our acquisition of TopBloc,” said ASGN’s Chief Executive Officer, Ted Hanson. “This acquisition is a significant step in our ongoing strategy to align with in-demand solutions and strong technology alliance partners, thereby extending their capabilities across ASGN’s deep customer base. As ERP platforms are crucial to managing financial and human capital information across enterprises, they’ve become even more essential with the expansion of GenAI use cases that rely on clean, auditable, and secure data. Acquiring TopBloc ideally positions ASGN to enhance our services and immediately capitalize on these emerging opportunities in the ERP and Workday marketplace.”

ASGN is also pleased to announce that Shiv Iyer has officially assumed the role of President, effective immediately. Iyer succeeds Rand Blazer, who has transitioned into the role of Executive Vice Chairman. Iyer brings extensive consulting experience to ASGN. Most recently, he led Accenture’s Consulting and Industry X solutions across the United States, Canada, and Latin America.

“Having gotten to know Shiv over the past few months, I am delighted to officially welcome him to ASGN as our new President,” said Hanson. “Shiv’s approach to serving enterprise accounts by bringing innovative solutions across a large account portfolio aligns perfectly with ASGN’s business philosophy. With Rand’s ongoing support on key strategic initiatives and Shiv’s proven track record, I am confident in a seamless leadership transition.”

In connection with the closing of the acquisition, ASGN is granting restricted stock unit (“RSU”) awards to 41 key TopBloc employees covering approximately 150,000 shares today. These awards vest: (a) one-half on the second anniversary of the grant date, and (b) 25 percent on each of the third and fourth anniversaries of the grant date. Further, in connection with his hire, Mr. Iyer: (a) received an award of 44,162 RSUs on March 3, 2025, which vest in equal installments on the first, second, and third anniversaries of the grant, and (b) will receive a value of $2.875 million of performance-based RSUs when the Compensation Committee sets the target, which will vest on December 31, 2027, subject to certification of performance. All of the RSUs are subject to continued service through the vesting dates and are granted as employment inducement awards pursuant to the New York Stock Exchange rules.

About ASGN Incorporated

ASGN Incorporated (NYSE: ASGN) is a leading provider of IT services and solutions across the commercial and government sectors. ASGN helps corporate enterprises and government organizations develop, implement, and operate critical IT and business solutions through its integrated offerings. For more information, please visit asgn.com.

Safe Harbor

Certain statements made in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty. Forward-looking statements include statements, amongst others, regarding our anticipated financial and operating performance and that of TopBloc. All statements in this news release, other than those setting forth strictly historical information, are forward-looking statements. Forward-looking statements are not guarantees of future performance and actual results might differ materially. For a full list of risks and discussion of forward-looking statements, please see our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 24, 2025. We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250304804781/en/

Kimberly Esterkin

Vice President, Investor Relations

kimberly.esterkin@asgn.com

Source: ASGN Incorporated

FAQ

How much did ASGN pay for the TopBloc acquisition?

ASGN acquired TopBloc for $340 million in cash and equity.

What is the strategic importance of TopBloc acquisition for ASGN?

The acquisition strengthens ASGN's ERP capabilities and positions them to capitalize on GenAI opportunities in the ERP and Workday marketplace.

What RSU compensation package was announced for TopBloc employees?

41 key TopBloc employees received RSUs covering 150,000 shares, vesting over four years with 50% after two years and 25% each in years three and four.

Who is the new President of ASGN and what is their background?

Shiv Iyer, former leader of Accenture's Consulting and Industry X solutions across the Americas, has become ASGN's new President, succeeding Rand Blazer.