Upwork, the San Francisco-based platform connecting companies with freelancers, announced two acquisitions aimed at launching a new stand-alone enterprise-focused business to broaden its market presence.
The company acquired Bubty, a workforce management platform, and signed a definitive agreement to acquire Ascen, a global compliance and Employer of Record (EOR) company. These acquisitions were revealed ahead of Upwork’s second-quarter earnings call scheduled for August 6.
Creating a Stand-Alone Enterprise Entity
Upwork plans to integrate Bubty and Ascen into its current enterprise operations to form a distinct entity under the Upwork umbrella. This new business will extend Upwork’s reach beyond its core independent contractor marketplace, enabling it to compete more broadly in corporate staffing.
The expanded offering will support various contract types, including agent of record, employer of record, and staff augmentation, catering to enterprises with complex hiring and compliance needs.
Upwork President and CEO Hayden Brown explained that the timing is ideal for this move as existing enterprise clients increasingly seek access to diverse talent pools and contract models.
Brown emphasized that traditional providers often force a trade-off between flexibility, compliance, speed, scale, and digital tools. Upwork aims to eliminate such compromises by offering a unified, robust solution that meets all these demands.
Currently, Upwork’s enterprise business generates approximately $100 million of its total $750 million annual revenue.
Rationale for a Separate Business Unit
Given the distinct compliance and software integration requirements of large enterprises compared to small and midsize businesses, Upwork decided to separate its enterprise business to allow for focused branding and operational clarity.
Brown shared that over 100 companies were evaluated during the acquisition search. Bubty and Ascen were chosen for their individual strengths and complementary technologies. Upwork piloted both companies separately and in combination, discovering their solutions integrated seamlessly and delivered innovative capabilities.
Upwork plans to reveal detailed branding and a full suite of offerings for the new enterprise business later this year.
What The Author Thinks
Upwork’s decision to build a separate enterprise-focused business through these acquisitions reflects a keen understanding of evolving workforce needs. Enterprises require solutions that balance compliance, flexibility, and technology integration — areas where traditional freelance platforms often fall short. By combining Bubty and Ascen’s capabilities, Upwork positions itself to offer a comprehensive, competitive service that could redefine corporate staffing. The challenge will be in seamless execution and clear communication to attract large clients accustomed to legacy providers.
Featured image credit: Alpha Photo via Flickr
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