ADP, Inc. (originally an acronym for Automatic Data Processing) is an American provider of

human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms includ ...

management software and services.

History

In 1949,

Henry Taub Henry Taub (September 20, 1927 – March 31, 2011) was an American businessman and philanthropist of Hungarian-Jewish descent who was a co-founder of ADP. Raised in Paterson, New Jersey, Taub attended Eastside High School. Taub was educated ...

founded Automatic Payrolls, Inc. as a manual payroll processing business with his brother Joe Taub.

Frank Lautenberg Frank Raleigh Lautenberg (; January 23, 1924 June 3, 2013) was an American businessman and Democratic Party politician who served as United States Senator from New Jersey from 1982 to 2001, and again from 2003 until his death in 2013. He was ori ...

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 A punched card (also punch card or punched-card) is a piece of stiff paper that holds digital data represented by the presence or absence of holes in predefined positions. Punched cards were once common in data processing applications or to di ...

machines A machine is a physical system using power to apply forces and control movement to perform an action. The term is commonly applied to artificial devices, such as those employing engines or motors, but also to natural biological macromolecul ...

, check printing machines, and

mainframe computer A mainframe computer, informally called a mainframe or big iron, is a computer used primarily by large organizations for critical applications like bulk data processing for tasks such as censuses, industry and consumer statistics, enterprise ...

s. ADP went public in 1961 with 300 clients, 125 employees, and revenues of approximately $400,000 USD. The company established a

subsidiary A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a ...

in the United Kingdom in 1965. In 1970, Lautenberg was noted as being the

president President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university * President (government title) President may also refer to: Automobiles * Nissan President, a 1966–2010 Japanese ...

of the company. Also in 1970, the company's stock transitioned from trading on

American Stock Exchange NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was know ...

to trading on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its liste ...

. 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 The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and po ...

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 Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. Si ...

. In September 1998, ADP acquired UK-based

Chessington Computer Centre Chessington Computer Centre was an organisation based in Chessington that provided administration services to the UK Government. Originally part of central government, it became an executive agency and trading fund of the Cabinet Office on 1 April 1 ...

that supplied administration services to the

UK Government ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd , image = HM Government logo.svg , image_size = 220px , image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg , image_size2 = 180px , caption = Royal Arms , date_est ...

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

Broadridge Financial Solutions Broadridge Financial Solutions is a public corporate services and financial technology company founded in 2007 as a spin-off from management software company :Automatic Data Processing. Broadridge supplies public companies with proxy statements ...

, Inc. In January 2017, ADP acquired The Marcus Buckingham Company (TMBC). In October 2017, ADP acquired Global Cash Card, a digital payments facilitator. In January 2018, ADP acquired

WorkMarket WorkMarket is a New York City-based company that provides an online platform and marketplace for businesses to manage contingent workers and IT talent. The company was founded in May 2010 by Jeffrey Leventhal. In January 2018, WorkMarket was acqu ...

, a

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

-based software platform company that helps businesses manage freelancers, contractors, and consultants. In 2020, ADP was ranked 227 on the ''Fortune'' 500 list of the largest United States corporations by revenue. ADP has also been included on Fortune Magazine's "World's Most Admired Companies" List for 14 consecutive years and has earned recognition from DiversityInc as one of the top companies for diversity and inclusion in the United States for 11 consecutive years. ADP currently has about 58,000 employees worldwide and its fiscal year 2019 revenues were $14.2 billion.

Divisions and spinoffs

Broadridge Financial Solutions

In 2007, the ADP Brokerage Service Group was spun off to form

, Inc. (), removing about $2 billion USD from ADP's total yearly revenue. 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.

CDK Global, LLC

Formerly called ADP Dealer Services,

CDK Global CDK Global Inc. is an American multinational corporation based in Hoffman Estates, Illinois, providing data and technology to the automotive, heavy truck, recreation, and heavy equipment industries. The company has 37 locations in 25 countries ...

was formed October 1, 2014 and provides technology services to automotive dealerships, as well as vehicle manufacturers. In 2010, ADP acquired the automotive marketing company Cobalt. BZ Results (Automotive Dealer Services), winner of the 2006 "Innovative Company of the Year", was purchased by ADP in 2006. 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. 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). Both S&P and Moody's downgraded ADP to AA in April 2014, after the dealer services unit was spun off.

References

External links

* {{Authority control, state=expanded 01 Business services companies of the United States Payroll Companies based in Essex County, New Jersey Roseland, New Jersey Business services companies established in 1949 American companies established in 1949 1949 establishments in New Jersey