ADP (company)

Last updated
Automatic Data Processing, Inc.
ADP
FormerlyAutomatic Payrolls, Inc.
Company type Public
Industry
Founded1949;75 years ago (1949) (as Automatic Payrolls, Inc.) [1]
Paterson, New Jersey, U.S.
Founder Henry Taub
Headquarters Roseland, New Jersey, U.S.
Key people
  • Maria Black (CEO)
  • John Ayala (COO)
  • Gus Blanchard (CMO)
ServicesHuman resource, payroll, tax and benefits administration tools
RevenueIncrease2.svg US$19.2 billion (2024)
Increase2.svg US$4.95 billion (2024)
Increase2.svg US$3.75 billion (2024)
Total assets Increase2.svg US$54.4 billion (2024)
Total equity Increase2.svg US$4.55 billion (2024)
Number of employees
c. 64,000 (2024)
Website adp.com
Footnotes /references
Financials as of June 30,2024. [2]

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services, headquartered in Roseland, New Jersey.

Contents

History

In 1949, Henry Taub founded Automatic Payrolls, Inc. as a manual payroll processing business with his brother Joe Taub. Frank Lautenberg joined the brothers in the company's infancy. In 1957, Lautenberg, after successfully serving in sales and marketing, became a full-fledged partner with the two brothers. In 1961, the company changed its name to Automatic Data Processing, Inc. (ADP), and began using punched card machines, check printing machines, and mainframe computers. ADP went public in 1961 with 300 clients, 125 employees, and revenues of approximately US$400,000. [3] The company established a subsidiary in the United Kingdom in 1965. In 1970, Lautenberg was noted as being the president of the company. [4] Also in 1970, the company's stock transitioned from trading on American Stock Exchange to trading on the New York Stock Exchange. [4] It acquired the pioneering online computer services company Time Sharing Limited (TSL) in 1974 and Cyphernetics in 1975. Lautenberg continued in his roles as chairman and CEO until elected to the United States Senate from New Jersey in 1982. [5]

From 1985 onward, ADP's annual revenues exceeded the $1 billion mark, with paychecks processed for about 20% of the U.S. workforce. In the 1990s, ADP began acting as a professional employer organization (PEO). Around this time, the company acquired Autonom, a German company, [6] [7] and the payroll and human resource services company, GSI, headquartered in Paris. [8] In September 1998, ADP acquired UK-based Chessington Computer Centre that supplied administration services to the UK Government. [9]

Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers, primarily in the UK, was acquired in 2006. [10] In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc. [11]

On October 21, 2008, ADP switched its stock listing to the NASDAQ Global Select Market. [12]

In January 2017, ADP acquired The Marcus Buckingham Company (TMBC). [13]

In October 2017, ADP acquired Global Cash Card, [14] a digital payments facilitator.

In January 2018, ADP acquired WorkMarket, a New York City–based software platform company that helps businesses manage freelancers, contractors, and consultants. [15] [16] Later that same year, the company announced the acquisition of Celergo, a global payroll management service company. [17] [18]

In 2020, ADP was ranked 227 on the Fortune 500 list of the largest United States corporations by revenue. [19] ADP has also been included on Fortune Magazine's "World's Most Admired Companies" List for 14 consecutive years [20] and has earned recognition from DiversityInc as one of the top companies for diversity and inclusion in the United States for 11 consecutive years. [21]

In 2023, ADP announced a further acquisition, for the company called Honu HR, Inc. [22] DBA Sora (referred to as Sora). [23] [24]

ADP has about 64,000 employees worldwide and its fiscal year 2024 revenues were $19 billion. [2]

Divisions and spinoffs

Broadridge Financial Solutions

In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc., removing about US$2 billion from ADP's total yearly revenue. [11] ADP distributed one share of Broadridge common stock for every four shares of ADP common stock held by shareholders of record as of the close of business on March 23, 2007. [25]

CDK Global, LLC

Formerly called ADP Dealer Services, CDK Global was formed October 1, 2014, and provides technology services to automotive dealerships, as well as vehicle manufacturers. [26] [27] [28] In 2010, ADP acquired the automotive marketing company Cobalt. [29]

BZ Results, winner of AutoSuccess magazine's 2005 "Innovative Company of the Year" award, [30] was purchased by ADP in 2006. [31] At the time, BZ Results was valued at $125 million. On April 7, 2014, ADP laid off several Dealer Services associates in a reorganization and 3 days later announced plans to spin off the Dealer Services division as a standalone company. [32] On August 19, 2014, ADP Dealer Services announced that the name of the new company, post-spinoff, would be CDK Global (an acronym for Cobalt, Dealer Services, Kerridge). [33]

Both S&P and Moody's downgraded ADP to AA in April 2014, after the dealer services unit was spun off. [34]

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References

  1. ↑ Yost 2017, p. 8.
  2. 1 2 "US SEC: Annual Form 10-K (2024), Automatic Data Processing, Inc". U.S. Securities and Exchange Commission. August 7, 2024. Retrieved August 9, 2024.
  3. ↑ Yost 2017, p. 60.
  4. 1 2 "Earnings Up 47% for Automatic Data". The Bridgeport Post. Bridgeport, Connecticut. October 28, 1970. p. 62. Retrieved 2018-04-07.
  5. ↑ Clymer, Adam (2013-06-03). "Frank Lautenberg, New Jersey Senator in His 5th Term, Dies at 89". The New York Times. ISSN   0362-4331 . Retrieved 2023-06-06.
  6. ↑ Robert, Virginie (31 August 1995). "GSI sur le point d'être rachetée par la société américaine ADP" [GSI to be acquired by the American company ADP]. Les Echos (in French).
  7. ↑ Automatic Data Processing Inc (21 September 1999). "Automatic Data Processing Inc: Form 10-K (Annual Report) Filed 9/21/1999 for period ending 6/30/1999" (PDF).
  8. ↑ "ADP Signs Agreement to Acquire GSI" (Press release). Arthur Schmidt & Associates. Retrieved 2018-04-07– via The Free Library.
  9. ↑ "Ministers under fire over licence errors". Computer Weekly . February 4, 1999. Archived from the original on May 20, 2013.
  10. ↑ Paige, Michael. "ADP buys UK's Kerridge for $300M". MarketWatch. Retrieved 13 May 2018.
  11. 1 2 "Automatic Data Processing March 2007 Current Report, Form 8-K". EDGAR. March 21, 2007. Retrieved December 26, 2012.
  12. ↑ https://www.sec.gov/Archives/edgar/data/8670/000000867008000058/ex99.htm
  13. ↑ "ADP acquires Marcus Buckingham Company to expand talent portfolio". ADP. 17 January 2017.
  14. ↑ "ADP acquires Global Cash Card". ADP. 5 October 2017.
  15. ↑ Deutscher, Maria (2018-01-22). "Payroll giant ADP acquires worker management startup WorkMarket". siliconANGLE. Retrieved 2018-01-23.
  16. ↑ "ADP acquires WorkMarket to further extend human capital management". ADP. Retrieved 2018-01-22.
  17. ↑ "ADP Acquires Celergo". CPA Practice Advisor. 2018-08-01. Retrieved 2024-11-01.
  18. ↑ "Acquisitions Aid Automatic Data Processing Amid Rising Expenses". finance yahoo. August 28, 2024.
  19. ↑ "Automatic Data Processing | 2020 Fortune 500". Fortune. July 8, 2020.
  20. ↑ "ADP recognized on FORTUNE Magazine 2020 World's Most Admired Companies List for 14th consecutive year". Fortune. January 21, 2020.
  21. ↑ "DiversityInc's 2020 Top 50". May 6, 2020. Archived from the original on August 16, 2020. Retrieved June 25, 2020.
  22. ↑ "Acquisitions Aid Automatic Data Processing Amid Rising Expenses". Finance Yahoo. August 28, 2024.
  23. ↑ "ADP buys automation startup Sora". unleash.ai. August 3, 2023.
  24. ↑ "Business Expansion, Acquisitions Aid ADP Amid Competition". Yahoo Finance. March 1, 2024.
  25. ↑ "Automatic Data Processing April 2007 Current Report, Form 8-K". EDGAR. April 4, 2007. Retrieved December 26, 2012.
  26. ↑ Oak, Sophie (12 November 2020). "A brief history of CDK Global". Automotive 30% Club. Archived from the original on 2020-11-13. Retrieved 6 May 2021.
  27. ↑ "CDK Global to Be Acquired by Brookfield for $54.87 Per Share in Cash". www.businesswire.com. 2022-04-07. Retrieved 2023-09-21.
  28. ↑ "CDK Global LLC - Company Profile and News". Bloomberg.com. Retrieved 2023-09-21.
  29. ↑ "ADP Completes Cobalt Acquisition -- Is It Nirvana?". Dealer. Archived from the original on August 20, 2010.
  30. ↑ Luck, Patrick (December 2005). "AutoSuccess' Innovative Companies of the Year" (PDF). AutoSuccess. Systems Marketing, Inc. pp. 8–10. Archived from the original (PDF) on 2007-11-30. Retrieved 2024-06-29.
  31. ↑ Cliff Banks (April 1, 2006). "ADP Bolsters Website Efforts By Buying BZ". Ward's . Archived from the original on 2015-09-30. Retrieved 2006-12-26.
  32. ↑ "ADP plans to spin off dealer-services business". MarketWatch .
  33. ↑ "ADP Announces Post-Spin name of its Dealer Services Business". Archived from the original on 2014-08-21. Retrieved 2014-08-19.
  34. ↑ "ADP Downgraded by Moody's, S&P After Spin-Off" . Retrieved 2014-04-10.

Sources

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