It has been learned from China Fortune, sources said that human resources software provider Automatic Data Processing (ADP USA) is negotiating to acquire WorkForce Software for around $1.2 billion. Sources say that in the coming weeks, ADP may announce the acquisition of this Livonia, Michigan-based company from supporters such as Elliott Investment Management and Insight Partners. Despite progress in the negotiations, it is still possible for the deal to be delayed or interrupted.

According to the latest annual report, ADP, founded in 1949, processes one-sixth of the U.S. workforce's salaries. In the fierce competition among payroll providers like Paycor and Paylocity, the company has been expanding its business scope, offering a wide range of so-called human capital management services.

According to the company's website, WorkForce Software helps companies manage customized payroll needs, such as facilitating employees swapping paid time off with colleagues, or paying 1.5 times wages when employees rest after long shifts.

According to a statement at the time, Elliott's private equity subsidiary announced a "significant equity investment" in WorkForce Software in 2019, becoming an "equal partner" with Insight, which has owned the company since 2014.

ADP closed down 0.5% on Wednesday, at $275.25, bringing the company's market cap to about $112 billion, based in Roseland, New Jersey.