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ADP acquires payment card firm as proxy fight wears on

October 09, 2017

Automatic Data Processing Inc. (NASD: ADP) announced Thursday it acquired payment card firm Global Cash Card, which it plans to integrate into its existing payment card offering called “Aline.” The company says the deal will give more than 4 million accounts under management.

The news comes as ADP continues to fight a proxy battle with activist investor Pershing Square Capital, run by Bill Ackman, who appeared last Wednesday on CNBC with Jim Cramer. ADP is fighting back and released a letter to stockholders last Thursday highlighting its own track record and concerns with Ackman’s proposals.

In its acquisition of Global Cash Card, ADP didn’t announce the terms, but it said the deal would allow it to provide new tools to consumers.

“ADP pays one-in-six workers in the US, and our clients look to us as the market leader to offer solutions that help them better engage with their entire workforce,” ADP President and CEO Carlos Rodriguez said in a statement. “The acquisition of this established and profitable company helps us innovate around the essential service of delivering pay, and will enable us to provide new tools to consumers that help them manage their finances.”

 Global Cash Card has offerings for both W-2 employees and 1099 contractors. It was founded in 2002 and based in Irvine, Calif.

“As the ‘gig economy’ changes the way people earn a living, so too does it change the way companies need to pay their workforce,” said Doug Politi, president of Added Value Services at ADP.  “We have been impressed with Global Cash Card’s continuous innovation over the years, and are very excited to welcome Global Cash Card associates and experienced management team to the ADP family."