NEW YORK (Reuters) -- Ceridian Corp (CEN.N) said Saturday it has resolved a proxy battle with its largest shareholder, clearing the way for the payroll processing company to be acquired by Thomas H. Lee Partners LP (THL.UL) and Fidelity National Financial Inc (FNF.N) for about $5.2 billion.

The company said the hedge fund Pershing Square Capital Management LP, led by activist investor William Ackman, will discontinue its proxy context.
Ceridian said it will increase the size of its board of directors to 11, and appoint three of Pershing Square's nominees -- John Barfitt, Robert Levenson and Gregory Pratt, as well as the firm's Paul Hilal, to the board.
Pershing Square owns about 14.9 percent of Ceridian's shares.
The takeover by Thomas H. Lee and Fidelity National Financial values Ceridian at $36 per share