Automatic Data Processing Inc. (ADP.US) is close to buying WorkForce Software for $1.2 billion, according to people familiar with the matter.

Intelligible sources say that Automatic Data Processing, Inc. (ADP.US), a human resources software provider, is in talks to acquire WorkForce Software for about $1.2 billion. The sources say that ADP may announce the acquisition of the Livonia, Michigan-based company in the coming weeks from supporters including Elliott Investment Management and Insight Partners. The sources say that while progress has been made in the negotiations, it is possible that they could be delayed or terminated.

According to its latest annual report, ADP, founded in 1949, processes paychecks for one-sixth of American workers. The company has been expanding its offerings in the competitive landscape of payroll providers like Paycor and Paylocity, offering a wide range of so-called human capital management services.

According to its website, WorkForce Software helps companies manage customized pay needs, such as swapping paid time off between employees or paying 1.5 times the regular wage when an employee is on an extended shift.

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 had owned the company since 2014.

ADP closed Wednesday down 0.5% at $275.25, giving the New Jersey-based company a market capitalization of about $112 billion.