ASGN to Acquire Quinnox for $290 Million in Strategic Push
All-cash deal aims to bolster ASGN's high-growth digital transformation services and expand its global delivery capabilities.
ASGN Incorporated (NYSE: ASGN), a leading provider of IT and professional services, announced a definitive agreement to acquire the digital transformation and IT services firm Quinnox in an all-cash transaction valued at $290 million. The deal marks a significant strategic investment for ASGN, representing more than 13% of its approximately $2.14 billion market capitalization, as it seeks to deepen its expertise in high-demand digital engineering services.
The acquisition is intended to significantly enhance ASGN’s capabilities in complex digital projects and position the company for future growth. Quinnox, which specializes in areas like cloud solutions, data engineering, and AI-driven business transformation, will be integrated into ASGN’s largest division, Apex Systems.
“Joining forces with Quinnox represents a significant milestone in our long-term strategy to enhance our digital engineering and complex delivery capabilities and positions us for our next wave of growth and value creation,” said ASGN Chief Executive Officer Ted Hanson in a statement. “Quinnox’s AI-driven approach to business and dedication to innovation fit seamlessly with our own values and objectives. We are excited to extend their capabilities across our Fortune 1000 client base.”
Financially, Quinnox is projected to contribute approximately $100 million in revenue in its first full year under ASGN’s ownership. The addition will build on ASGN’s trailing twelve-month revenue of nearly $4 billion. Company executives stated the acquisition is expected to be immediately accretive to ASGN’s adjusted EBITDA and earnings per share, signaling confidence in the deal’s financial synergies.
The move is part of a broader industry trend where IT service providers are aggressively scaling their digital capabilities to meet evolving client demands that have shifted from traditional staffing to comprehensive project-based solutions. According to the official company announcement, the deal strengthens ASGN's position in key commercial sectors such as manufacturing, logistics, and financial services.
A key benefit highlighted by the company is the expansion of its global delivery footprint. Quinnox adds significant operational scale in India and a delivery center in Mexico, providing ASGN with a more robust and cost-effective platform to serve its international client base.
The transaction is expected to close in the third quarter of 2024, subject to regulatory approvals and customary closing conditions. From a market perspective, the acquisition comes as ASGN’s stock has traded in a wide range, with a 52-week low of $39.25 and a high of $95.29. The current analyst consensus target price sits at approximately $49.83. This strategic acquisition could provide a catalyst for the company as it aims to capture a larger share of the high-value digital services market, a move noted by industry observers at publications like Staffing Industry Analysts.