Upwork, a platform connecting companies with freelancers, has announced two acquisitions to expand its market reach by building a new stand-alone enterprise-focused business. The San Francisco-based company acquired Bubty, a workforce management platform, and signed a definitive agreement to acquire Ascen, a global compliance and employer of record company. These acquisitions come ahead of Upwork’s second-quarter earnings call on August 6.
The two companies will be integrated into Upwork’s existing enterprise business to form a separate entity under the Upwork brand. This move is significant as it allows Upwork to offer access to talent beyond independent contractors, positioning the company to compete in new areas of the corporate staffing market. The new entity will support various contract types, including agent of record, employer of record, and staff augmentation.
Upwork president and CEO Hayden Brown stated that the timing was right for this expansion, as enterprise customers have increasingly requested access to broader talent pools. Brown explained that many existing providers force customers to choose between flexibility and compliance, speed and scale, or digital tools and enterprise-grade solutions. With this new capability, Upwork aims to eliminate those compromises and deliver a comprehensive solution tailored to enterprise needs.
Brown noted that Upwork’s current enterprise business generates about $100 million of the company’s total $750 million in annual revenue. The decision to create a stand-alone enterprise entity stems from the distinct compliance and software integration needs of large enterprises compared to small and midsize businesses. This separation allows for stronger branding and sharper internal focus.
Upwork evaluated over 100 potential acquisitions before selecting Bubty and Ascen. The company conducted pilot programs with both firms individually and together, recognizing the synergy between their technologies and Upwork’s existing offerings. Brown emphasized how seamlessly the combined solutions could deliver innovative market solutions.
Details about the branding and full offerings of the new enterprise business will be announced later this year.