Automatic Data Processing

Automatic Data Processing, Inc.
Public
Traded as
Industry Business services
Founded Paterson, New Jersey (1949)
Founder Henry Taub
Headquarters Roseland, New Jersey, U.S.
Key people
 Carlos A. Rodriguez (President & CEO)
Services Human resource, payroll, tax and benefits administration solutions from a single source
Revenue
  • Increase US$12.380 billion (2017)[1]
  • Increase US$11.668 billion (2016)[1]
  • Increase US$2.531 billion (2017)[1]
  • Increase US$2.235 billion (2016)[1]
  • Increase US$1.733 billion (2017)[1]
  • Increase US$1.493 billion(2016)[1]
Total assets
  • Decrease US$37.180 billion (2017)[1]
  • Increase US$43.675 billion(2016)[1]
Total equity
  • Decrease US$3.977 billion (2017)[1]
  • Decrease US$4.482 billion(2016)[1]
Number of employees
 ~58,000 (June 2017)[1]
Website www.adp.com

Automatic Data Processing, Inc., commonly known as ADP, is an American provider of human resources management software and services. As of 2010, ADP was one of four American companies to have a AAA credit rating from Standard & Poor's (S&P) and Moody's.[2][3]

History

An ADP Model 4500 timecard reader

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.[4] ADP went public in 1961 with 300 clients, 125 employees and revenues of approximately US$400,000. The company established a subsidiary in the United Kingdom in 1965. In 1970, Lautenberg was noted as being the president of the company.[5] Also in 1970, the company's stock transitioned from trading on American Stock Exchange to trading on the New York Stock Exchange.[5] 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.

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, and the payroll and human resource services company, GSI, headquartered in Paris.[6] In September 1998, ADP acquired UK-based Chessington Computer Centre that supplied administration services to the UK Government.[7]

Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers primarily in the UK was acquired in 2006.[8] In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc.[9] On February 27, 2017, Automatic Data Processing Inc. confirmed it was closing its office in west Ann Arbor on March 30, 2017. At the time, ADP stated that it had around 56,000 employees worldwide, and that the year prior it had revenues of $12 billion,[10] or US$11,700,000,000 in 2016.[11] Also in early 2017, ADP described itself as the "largest provider of HR services in North America, Europe, Latin America and the Pacific Rim".[10]

In January 2018, ADP acquired WorkMarket, a New York City-based software platform company that helps businesses manage freelancers, contractors, and consultants.[12]

In August 1, 2018, ADP acquired Celergo, a company based out of Chicago IL. This company focuses in Human Capital Management in the global market.[13]

Divisions and spinoffs

Broadridge Financial Solutions

In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc. (NYSE: BR), removing about US$2,000,000,000 from ADP's total yearly revenue.[9] 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.[14]

CDK Global, LLC

ADP Dealer Services in Ontario

Formerly called ADP Dealer Services, CDK Global was formed October 1, 2014 and provides integrated technology services and solutions to over 27,000 automotive dealerships internationally, as well as vehicle manufacturers.[15] In 2010, ADP acquired the automotive marketing company Cobalt.[16]

BZ Results (Automotive Dealer Services), winner of the 2006 “Innovative Company of the Year”,[17][18] was purchased by ADP in 2006.[19] At the time, BZ Results was valued at $125 million. On April 7, 2014, ADP announced plans to spin off the Dealer Services division as a standalone company.[20] On August 19, 2014, ADP Dealer Services announced that the name of the new company, post-spinoff, would be CDK Global.[21]

The Marcus Buckingham Company

In January, 2017, ADP purchased The Marcus Buckingham Company[22] to strengthen its talent development offerings. Best known for the StandOut strength and character assessment tool for both leaders and associates, with the book StandOut 2.0: Assess Your Strengths, Find Your Edge, Win at Work published in 2015,[23] this addition offers ADP clients the people analytics they are wanting to provide better team collaboration based on individual character and personality assessments.

Publications

ADP is the sponsor of the ADP National Employment Report[24] as well as the ADP Small Business Report.

Recognition

  • 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.[25][26][27]
  • In 2006, ADP ranked #2 on InformationWeek 500's top 250 Innovators.[28]
  • In 2009, the Aberdeen Group named ADP as one of the top 25 Most Influential Technology Vendors for 2009.[29]
  • In 2010, ADP ranked first on Fortune's list of America’s Most Admired Companies within the Financial Data Services category.[29]
  • 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.[30][31]
  • In 2011, ADP achieved a 100 percent rating in the Corporate Equality Index (CEI) report.[29]
  • In 2012, ADP was recently listed as #47 on Computerworld's 19th annual list of the 100 Best Places to Work in IT.[32]
  • In 2012, ADP was listed as one of the top 40 companies in the United States for leaders by Chief Executive.[33]
  • In 2015, ADP was named a talent acquisition leader by Forrester Research.[34]
  • In 2016, ADP was named a leader in Gartner's Magic Quadrant for Payroll BPO Services for a fifth consecutive year.[35]

Both S&P and Moody's downgraded ADP to AA in April 2014, after the dealer services unit was spun off.[36]

References

  1. 1 2 3 4 5 6 7 8 9 10 11 "Automatic Data Processing, Inc. 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. July 2017. p. 19.
  2. ↑ Rooney, Ben (February 5, 2010). "Buffett's Berkshire loses top S&P credit rating". CNN Money.
  3. ↑ Staff (July 27, 2011). "4 AAA-Rated Companies With Attractive Yields". Seeking Alpha.
  4. ↑ "History". ADP. Archived from the original on June 13, 2012.
  5. 1 2 "Earnings Up 47% for Automatic Data". The Bridgeport Post. Bridgeport, Connecticutt. October 28, 1970. p. 62. Retrieved 2018-04-07.
  6. ↑ "ADP Signs Agreement to Acquire GSI" (Press release). Arthur Schmidt & Associates. Retrieved 2018-04-07 – via The Free Library.
  7. ↑ "Ministers under fire over licence errors". Computer Weekly. February 4, 1999 – via Highbeam Business.
  8. ↑ Paige, Michael. "ADP buys UK's Kerridge for $300M". MarketWatch. Retrieved 13 May 2018.
  9. 1 2 "Automatic Data Processing March 2007 Current Report, Form 8-K". EDGAR. March 21, 2007. Retrieved December 26, 2012.
  10. 1 2 Haynes, Jessica (February 28, 2017). "ADP announces more layoffs in Ann Arbor ahead of office closure". Michigan Live. Retrieved March 22, 2017.
  11. ↑ "Automatic Data Processing 2016 Annual Report, Form 10-K" (pdf). ADP. July 28, 2016. Retrieved February 8, 2017.
  12. ↑ Deutscher, Maria (2018-01-22). "Payroll giant ADP acquires worker management startup WorkMarket". siliconANGLE. Retrieved 2018-01-23.
  13. ↑ "ADP Acquires Celergo, Strengthening Global Payroll Capabilities | Automatic Data Processing, Inc". Automatic Data Processing, Inc. Retrieved 2018-08-06.
  14. ↑ "Automatic Data Processing April 2007 Current Report, Form 8-K". EDGAR. April 4, 2007. Retrieved December 26, 2012.
  15. ↑ "About ADP Dealer Services". ADP. Archived from the original on 2014-06-28.
  16. ↑ "ADP Completes Cobalt Acquisition -- Is It Nirvana?". Dealer. Archived from the original on August 20, 2010.
  17. ↑ Sean Wolfington Archived 2007-12-11 at the Wayback Machine.. AutoSuccess Magazine. Retrieved March 6, 2007.
  18. ↑ Auto Success magazine (pg. 8-10) Archived 2007-11-30 at the Wayback Machine..
  19. ↑ Cliff Banks (April 1, 2006). "ADP Bolsters Website Efforts By Buying BZ". WardsAuto.com. Retrieved 2006-12-26.
  20. ↑ "ADP plans to spin off dealer-services business". MarketWatch.
  21. ↑ "ADP Announces Post-Spin name of its Dealer Services Business".
  22. ↑ "ADP Acquires The Marcus Buckingham Company to Expand Talent Portfolio - Automatic Data Processing, Inc". Retrieved 2018-04-25.
  23. ↑ "StandOut 2.0: Assess Your Strengths, Find Your Edge, Win at Work". hbr.org. Retrieved 2018-04-25.
  24. ↑ "ADP National Employment Report". Retrieved 5 June 2017.
  25. ↑ Automatic Data Processing (ADP) 2003 Summary Annual Report (pg. 6)
  26. ↑ Automatic Data Processing (ADP) 2004 Summary Annual Report (pg. 14)
  27. ↑ Automatic Data Processing (ADP) 2005 Summary Annual Report (pg. 6)
  28. ↑ "InformationWeek 500: Top 250 Innovators" (pdf). 2006-09-11. Retrieved 2007-09-22.
  29. 1 2 3 "Recognition & Awards". ADP.
  30. ↑ "Training Top 125: 2010". Archived from the original on 2011-04-03.
  31. ↑ "Training Top 125: 2009" (pdf).
  32. ↑ "Best Places to Work 2012: Employer Profile of Automatic Data Processing Inc". Computerworld.
  33. ↑ "Awards and Recognition". ADP. Missing or empty |url= (help)
  34. ↑ "ADP Named a Talent Acquisition Leader by Independent Research Firm". ADP. Missing or empty |url= (help)
  35. ↑ "ADP Named a Leader in Gartner's Magic Quadrant for Payroll BPO Services for Fifth Consecutive Year". ADP. Missing or empty |url= (help)
  36. ↑ Mead, Charles (April 10, 2014). "ADP Stripped of Top AAA Ratings on Spinoff of Auto-Dealer Unit". Bloomberg Business News.
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