Upwork, a platform that connects companies with freelancers, announced two acquisitions to help build out a new stand-alone enterprise-focused business that could expand its market reach.
The San Francisco-based company announced it has acquired Bubty, a workforce management platform, and has signed a definitive agreement to acquire Ascen, a global compliance and EOR (employer of record) company, ahead of its second-quarter earnings call on August 6.
Upwork will integrate these two companies into its existing enterprise business to create a stand-alone entity under the Upwork umbrella.
The move is significant because it will allow Upwork to offer access to talent beyond the independent contractor workforce Upwork is known for — essentially enabling the company to compete in new areas of the corporate staffing market. The new entity will support contract types, including agent of record, employer of record, and staff augmentation.
Upwork president and CEO Hayden Brown told TechCrunch that the timing was right to launch this new enterprise-focused business because Upwork’s existing enterprise customers have been increasingly asking for access to these talent pools.
“Most of the providers that exist today force their customers to choose between flexibility and compliance, or speed and scale, or having a digital tool versus having something that’s actually robust and for the enterprise,” Brown said. “And with this new capability, we’re refusing to compromise. We’re giving our customers all of the benefits they’ve been looking for, and we’ve heard loud and clear that they want this singular solution.”
Brown said that Upwork’s existing enterprise business makes up about $100 million of the company’s overall $750 million in yearly revenue.
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