ADP, LLC

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ADP, LLC
Type Public
Traded as NASDAQADP
NASDAQ-100 Component
S&P 500 Component
Industry Business services
Founded Paterson, New Jersey (1949)
Headquarters Roseland, New Jersey, U.S.
Key people Leslie A. Brun (Chairman) Carlos Rodriguez (President & CEO)
Services Human resource, payroll, tax and benefits administration solutions from a single source
Revenue Increase $10.66 billion (2012)[1]
Operating income Increase $2.122 billion (2012)[1]
Net income Increase $1.388 billion (2012)[1]
Total assets Increase $30.81 billion (2012)[1]
Total equity Increase $6.114 billion (2012)[1]
Employees 60,000 +
Website www.adp.com - www.adp.ca

ADP, LLC, previously known as Automatic Data Processing, Inc, is an American provider of business outsourcing solutions. It is also a provider of computing services to automobile and heavy equipment dealers. ADP was formerly one of four U.S. companies to get a AAA credit rating from Standard & Poor's (S&P) and Moody's,[2][3] but S&P and Moody's downgraded ADP to AA in April 2014, after the company spun off its auto dealer services unit.[4]

History[edit]

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 1952, Lautenberg became Chairman and CEO of the company. In 1957, the company changed its name to Automatic Data Processing, Inc. (ADP), and began using punched card machines, check printing machines, and mainframe computers.[5] ADP went public in 1961 with 300 clients, 125 employees and revenues of approximately $400,000. The company established a subsidiary in the United Kingdom in 1965 and acquired the pioneering online computer services company Time Sharing Limited (TSL) in 1974. Lautenberg continued in his roles as Chairman and CEO until elected to the United States Senate from New Jersey in 1982.

From 1985 onward, ADP’s annual revenues exceeded the $1 billion mark, with paychecks processed for about 10% 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, Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers in the UK, and the payroll and human resource services company, GSI, headquartered in Paris.

In September 1998, ADP acquired UK-based Chessington Computer Centre that supplied administration services to the UK Government.[6]

In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc. (NYSEBR), removing about $2 billion from ADP's total yearly revenue.[7] 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.[8]

ADP is sponsor of the ADP National Employment Report as well as the ADP Small Business Report.

ADP Dealer Services[edit]

ADP Dealer Services in Ontario

Dealer Services was formed in 1972 and provides integrated technology services and solutions to over 26,500 automotive dealerships internationally, as well as vehicle manufacturers.[9] In 2010, ADP acquired the automotive marketing company Cobalt.[10]

BZ Results (Automotive Dealer Services), winner of the 2006 “Innovative Company of the Year”,[11][12] was purchased by ADP in 2006.[13] 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.[14] On August 19, 2014, ADP Dealer Services announced that the name of the new company, post-spinoff, would be CDK Global.[15]


Recognitions[edit]

  • ADP was recently listed as #47 on Computerworld's 19th annual list of the 100 Best Places to Work in IT 2012.[16]
  • ADP achieved a 100 percent rating in the 2011 Corporate Equality Index (CEI) report.[17]
  • In 2010, ADP was awarded the #2 ranking in the Training Top 125 List by Training magazine. ADP ranked 12th in 2009 and 20th in 2008.[18][19]
  • In 2009 the Aberdeen Group named ADP as one of the top 25 Most Influential Technology Vendors for 2009.[17]
  • ADP ranked first on Fortune's 2010 list of America’s Most Admired Companies within the Financial Data Services category.[17]
  • In 2006, ADP ranked #2 on InformationWeek 500's top 250 Innovators.[20]
  • In 2003, 2004, and 2005, ADP was ranked as one of the top 10 companies in North America, having been AAA/Aaa rated by both S&P and Moody's.[21][22][23]

References[edit]

  1. ^ a b c d e "Automatic Data Processing 2012 Annual Report, Form 10-K, Filing Date August 20, 2012". secdatabase.com. Retrieved Dec 26, 2012. 
  2. ^ Rooney, Ben (February 5, 2010). "Buffett's Berkshire loses top S&P credit rating". CNN. 
  3. ^ "4 AAA-Rated Companies With Attractive Yields". Seeking Alpha. 
  4. ^ Mead, Charles (Apr 10, 2014). "ADP Stripped of Top AAA Ratings on Spinoff of Auto-Dealer Unit". Bloomberg. 
  5. ^ "History". ADP. 
  6. ^ "Ministers under fire over licence errors". Highbeam Business. 4 February 1999. 
  7. ^ "Automatic Data Processing March 2007 Current Report, Form 8-K, Filing Date March 21, 2007". secdatabase.com. Retrieved Dec 26, 2012. 
  8. ^ "Automatic Data Processing April 2007 Current Report, Form 8-K, Filing Date April 04, 2007". secdatabase.com. Retrieved Dec 26, 2012. 
  9. ^ "About ADP Dealer Services". ADP Dealer Services. 
  10. ^ "ADP Completes Cobalt Acquisition -- Is It Nirvana?". Dealer. Archived from the original on August 20, 2010. 
  11. ^ Sean Wolfington. AutoSuccess Magazine. Retrieved March 6, 2007.
  12. ^ Auto Success magazine (pg. 8-10).
  13. ^ Cliff Banks (April 1, 2006). "ADP Bolsters Website Efforts By Buying BZ". WardsAuto.com. Retrieved 2006-12-26. 
  14. ^ "ADP plans to spin off dealer-services business". MarketWatch. 
  15. ^ "ADP Announces Post-Spin name of its Dealer Services Business". 
  16. ^ "Best Places to Work 2012: Employer Profile of Automatic Data Processing Inc.". Computerworld. 
  17. ^ a b c "Recognition & Awards". ADP. 
  18. ^ "Training Top 125: 2010". 
  19. ^ "Training Top 125: 2009" (pdf). 
  20. ^ "InformationWeek 500: Top 250 Innovators" (pdf). 2006-09-11. Retrieved 2007-09-22. 
  21. ^ Automatic Data Processing (ADP) 2003 Summary Annual Report (pg. 6)
  22. ^ Automatic Data Processing (ADP) 2004 Summary Annual Report (pg. 14)
  23. ^ Automatic Data Processing (ADP) 2005 Summary Annual Report (pg. 6)

External links[edit]