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ADP acquires freelancer management system provider WorkMarket

January 22, 2018

Freelancer management system WorkMarket was acquired by ADP (NASD: ADP), the large provider of paycheck processing, PEO and other services. The deal was announced today, almost six months after WorkMarket itself acquired freelancer management system provider OnForce from The Adecco Group.

“At ADP, we innovate by anticipating how the world of work evolves and how dynamics — like the rise of the gig economy — impact the needs of our clients and the modern workforce,” said Carlos Rodriguez, CEO of ADP. “WorkMarket allows us to provide ready access to a growing contingent labor pool and the tools to manage and pay them in a secure, efficient and compliant manner.”

Freelancer management systems are online platforms that allow staffing buyers to initiate, manage, track and analyze engagements with individual independent workers, according to Staffing Industry Analysts’ lexicon.

The new business will be referred to as WorkMarket, an ADP Company. WorkMarket’s CEO Stephen DeWitt and President Jeff Wald will become senior VPs of WorkMarket, an ADP Company.

The transaction closed Jan. 19; ADP did not disclose terms of the deal.

Founded in 2010, WorkMarket is headquartered in New York City and backed by venture firms including Union Square Ventures and Spark Capital; it raised $25 million in April 2017 from Accenture and Foundry Group. WorkMarket is based in New York.

“The WorkMarket team is thrilled to be joining ADP,” said Jeff Wald, co-founder and president of WorkMarket. “We share the same vision of enabling companies and workers alike to navigate the changing labor marketplace with greater ease, and we look forward to offering our solutions to ADP’s vast client base.”

ADP’s announcement of the WorkMarket acquisition also comes after a proxy battle where activist investor Bill Ackman lost a bid to place several of his own picks on ADP’s board.