Upwork, a leading platform connecting businesses with freelancers, has announced the acquisition of two companies—Bubty and Ascen—to establish a standalone enterprise-focused division. This strategic move aims to broaden Upwork’s service offerings beyond independent contractors, enabling the company to compete more effectively in the corporate staffing market.
Bubty, a Netherlands-based workforce management platform, specializes in helping enterprises manage various contingent workforce models and contract types. Ascen, a global compliance and employer of record (EOR) company, provides solutions for managing contingent W-2 workers with easy-to-integrate APIs. By integrating these two companies, Upwork plans to offer a comprehensive suite of services, including agent of record, employer of record, and staff augmentation, catering to the diverse needs of large enterprises.
Hayden Brown, Upwork’s president and CEO, emphasized that the timing for this expansion is driven by increasing demand from existing enterprise clients seeking access to a broader range of talent pools. He stated, 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. 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.
Upwork’s existing enterprise business currently contributes approximately $100 million to the company’s overall $750 million in annual revenue. The decision to create a standalone entity for enterprise services stems from the distinct compliance and software integration requirements of large organizations compared to small and midsize businesses. This separation is intended to enhance both external branding and internal focus.
The company evaluated over 100 potential acquisition targets before selecting Bubty and Ascen. Upwork piloted the services of both companies individually and in combination, observing the effectiveness of their technologies and the ease of integration with Upwork’s existing offerings. Brown noted, We saw through the power of those pilots how impactful their technology was and how easy it was to basically snap together what each of them offers, along with our existing offering to deliver something very new and innovative in the market.
Details regarding the branding and full range of services offered by the new standalone enterprise business are expected to be unveiled later this year.
