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// Workers AI · dad joke modeWhy ADP? It pays to know them.

From Wikipedia, the free encyclopedia
(Redirected from Automatic Data Processing)

Automatic Data Processing, Inc.
ADP
FormerlyAutomatic Payrolls, Inc.
TypePublic
Industry
Founded1949; 77 years ago (1949) (as Automatic Payrolls, Inc.)[1]
Paterson, New Jersey, U.S.
FounderHenry Taub
HeadquartersRoseland, New Jersey, U.S.
Key people
  • Maria Black (CEO)
  • Joe DeSilva (COO)
  • Samantha Orihuela (CMO)
  • Peter Hadley (CFO) [2]
ServicesHuman resource, payroll, tax and benefits administration tools
RevenueIncrease US$20.6 billion (2025)
Increase US$5.41 billion (2025)
Increase US$4.08 billion (2025)
Total assetsDecrease US$53.4 billion (2025)
Total equityIncrease US$6.19 billion (2025)
Number of employees
c. 67,000 (2025)
Websiteadp.com
Footnotes
Financials as of June 30, 2025.[3]

Automatic Data Processing, Inc. (ADP) is an American multinational provider of cloud-based human resources management, payroll processing, and professional employer organization (PEO) services, headquartered in Roseland, New Jersey.

History

[edit]

In 1949, Henry Taub founded Automatic Payrolls, Inc. as a manual payroll processing business with his brother Joe Taub.[4][5] Future United States Senator Frank Lautenberg joined the brothers in the company's infancy.[6] In 1954, Lautenberg, after successfully serving in sales and marketing, became a full-fledged partner with the two brothers.[7]

In 1957 the company installed a punched card system that would facilitate automatic data processing, replacing manual input calculators.[8] The next year the company changed its name to Automatic Data Processing.[9] In 1961, Oppenheimer & Company, one of ADP's clients, took the company public.[8] At that time the company had 300 clients, 125 employees, and revenues of approximately US$400,000.[10]

In 1962, ADP opened a Wall Street office to provide payroll and accounting services to brokerage firms.[11][12] This office eventually expanded into ADP's brokerage service division, which was spun off into Broadridge Financial Solutions in 1997.[13]

ADP established its dealer services business in 1973 after acquiring National Inventory Control System, a Portland-based inventory control service and data center, and CSI Computer Systems of Cincinnati.[14] These moves extended ADP's reach into another industry-specific market, and the company later completed more than 30 dealer service acquisitions before spinning the division off into a separate company.[15]

From 1985 onward, ADP's annual revenues exceeded the $1 billion mark, with paychecks processed for about 20% of the U.S. workforce. In August 1996, ADP began acting as a professional employer organization (PEO) after acquiring Staff Management Systems of Tampa, Florida.[16]

On October 21, 2008, ADP switched its stock listing to the NASDAQ Global Select Market.[17]

In 2020, ADP was ranked 227 on the Fortune 500 list of the largest United States corporations by revenue.[18] ADP has also been included on Fortune Magazine's "World's Most Admired Companies" List for 14 consecutive years[19] and has earned recognition from DiversityInc as one of the top companies for diversity and inclusion in the United States for 11 consecutive years.[20]

ADP has about 67,000 employees worldwide and its fiscal year 2025 revenues were $20.6 billion.[3]

Acquisitions

[edit]

ADP acquired the pioneering online computer services company Time Sharing Limited (TSL) in 1974[citation needed] and Cyphernetics in 1975.[21]

As ADP became a professional employer organization, it made several acquisitions. In 1995, the company acquired the German company Autonom and the payroll and human resource services company GSI, among others.[22][23][24][25] In September 1998, ADP acquired UK-based Chessington Computer Centre that supplied administration services to the UK Government.[26]

In 2006, ADP acquired Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers, primarily in the UK.[27] In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc.[28]

In January 2017, ADP acquired The Marcus Buckingham Company (TMBC).[29][30] In October 2017, ADP acquired Global Cash Card, a digital payments facilitator.[31][non-primary source needed] In January 2018, ADP acquired WorkMarket, a New York City–based software platform company that helps businesses manage freelancers, contractors, and consultants.[32][33] Later that same year, the company announced the acquisition of Celergo, a global payroll management service company.[34][35]

In 2023, ADP acquired workflow automation tool Sora.[35][36][37] In October 2024, ADP acquired WorkForce Software, a management services provider.[38]

Divisions and spinoffs

[edit]

Broadridge Financial Solutions

[edit]

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.[28] 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.[39] ADP had originally bought Brokerage Service Group in 1965.[40]

CDK Global, LLC

[edit]

Formerly called ADP Dealer Services, CDK Global was formed October 1, 2014, and provides technology services to automotive dealerships, as well as vehicle manufacturers.[41][42][43] In 2010, ADP acquired the automotive marketing company Cobalt.[44]

BZ Results, winner of AutoSuccess magazine's 2005 "Innovative Company of the Year" award,[45] was purchased by ADP in 2006.[46] 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.[47] 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).[48]

Both S&P and Moody's downgraded ADP to AA in April 2014, after the dealer services unit was spun off.[49]

Business model and operations

[edit]

Automatic Data Processing provides human resource management software and services, including payroll, [50] and operates with a recurring revenue business model.[51] ADP operates through two business segments: employer services and professional employer organization.[52] Key products include RUN Powered by ADP, an HR and payroll platform for small businesses, ADP Workforce Now, a human capital management (HCM) platform for mid-sized and large businesses,[53][54][55] and ADP Lyric HCM, an enterprise HCM platform.[56] ADP also issues the National Employment Report, which analyzes aggregated and anonymized payroll data from more than 26 million workers.[57] The report is widely cited in economic reporting and analysis.[58]

The company is headquartered in Roseland, New Jersey and operates in more than 140 countries and territories.[59] ADP has expanded its international presence and extended its services through acquisitions.[60]

Maria Black has served as CEO since 2023.[61] As of 2025, the company was ranked 220 on the Fortune 500 list of the largest United States corporations by revenue,[62] and had around 67,000 employees.[63]

Employment data

[edit]

ADP has been used as a source of private-sector employment data.[64][65][66] ADP's National Employment Report (NER) launches two days before the United States Bureau of Labor Statistics reports.[67] In 2022, it was redesigned in collaboration with Stanford's Digital Economy Lab.[67][68]

As early as 2018, the Federal Reserve used ADP employment and earnings data. In mid-2025, ADP stopped providing data to the Federal Reserve.[69] That same year, ADP began issuing the NER Pulse, a weekly preliminary U.S. estimate of the ADP National Employment Report.[70]

References

[edit]
  1. ↑ Yost, Jeffrey R. (2017). Making IT Work: A History of the Computer Services Industry. Cambridge, Massachusetts: MIT Press. p. 8. ISBN 978-0-262-03672-6. OCLC 978286108. Retrieved December 9, 2023 – via Internet Archive.
  2. ↑ "XBRL Viewer". www.sec.gov. Retrieved April 17, 2026.
  3. 1 2 "US SEC: Annual Form 10-K (2025), Automatic Data Processing, Inc". U.S. Securities and Exchange Commission. August 6, 2025. Retrieved August 7, 2025.
  4. ↑ James, George (December 15, 1996). "A 'Gentle Presence' Off Court". The New York Times. As a 21-year-old accountant, he created a company that began by preparing payrolls for dye houses out of an office above a luncheonette in his native Paterson. That company grew to become Automatic Data Processing.
  5. ↑ Wilson, Duff (April 4, 2011). "Henry Taub, a Founder of a Payroll Firm That Became a Global Giant, Dies at 83". The New York Times. Starting in 1949 in an office above a Paterson, N.J., ice cream parlor and then in a hotel basement, Mr. Taub and his brother, Joseph, built the company on a reputation for precision and timeliness.
  6. ↑ Wilson, Duff (April 4, 2011). "Henry Taub, a Founder of a Payroll Firm That Became a Global Giant, Dies at 83". The New York Times. They were joined in the early years by an aspiring salesman who had been their childhood friend — Frank R. Lautenberg, now a Democratic senator from New Jersey.
  7. ↑ Mayer, Martin (April 23, 1984). "How to manage a revolution". Forbes – via Nexis. In 1954, Lautenberg took the plunge and signed on full time with the Taubs.
  8. 1 2 Mayer, Martin (April 23, 1984). "How to manage a revolution". Forbes – via Nexis. In 1957 the three partners took their first stumbling step into data processing, installing a system that ran calculations and kept records on stiff IBM punch cards to replace the Comptometers and desk calculators.
  9. ↑ Wilson, Duff (April 4, 2011). "Henry Taub, a Founder of a Payroll Firm That Became a Global Giant, Dies at 83". The New York Times. The company, initially called Automatic Payrolls, changed its name to Automatic Data Processing in 1958 and went public in 1961.
  10. ↑ Yost, Jeffrey R. (2017). Making IT Work: A History of the Computer Services Industry. Cambridge, Massachusetts: MIT Press. p. 60. ISBN 978-0-262-03672-6. OCLC 978286108. In that year ADP recorded more than $400,000 in revenue and had 300 clients and 125 employees
  11. ↑ Fishman, Katharine Davis (1981). The Computer Establishment. Harper & Row. p. 185. ISBN 978-0070211278. Back in 1962 ADP opened an office on Wall Street to provide back-office services for brokerage firms.
  12. ↑ "Form 10-K". United States Securities and Exchange Commission. June 30, 2019. In 1962, the Brokerage Services division of ADP opened for business with one client, processing an average of 300 trades per night.
  13. ↑ "For Data Management, Broadridge Aligns With GoldenSource and IBM". Securities Industry News. May 7, 2007 – via Nexis. Stumm added that his company's history as a service bureau dates back to 1962 and it has "significant background in maintaining a securities master database." In 1997, ADP Brokerage Services Group, which was officially spun off as Broadridge in March, launched an integrated master security distributor to feed its domestic U.S., non-U.S. and fixed-income service offering.
  14. ↑ Vendor Profile: A Publication from INPUT's Vendor Analysis Program. Input Reports and Research Archive Project. 1976. p. 611. 1973: National Inventory Control Systems, Portland, OR. NICS placed ADP in the field of inventory control services for automotive dealers and provided a data center in Portland. It was renamed ADP dealer services, along with CSI Computer Systems, Inc.{{cite book}}: CS1 maint: others (link)
  15. ↑ "CDK Global: A Spin-Off Worth Avoiding". Seeking Alpha. October 18, 2014. Even though the independent company is new, the business, as part of ADP, is built up of more than 30 acquisitions completed over the last fifteen years. The current name, which is inspired from different acquisitions; C in the CDK is from Cobalt Digital Marketing, D from the original dealer services business and K from Kerridge Computer, highlights the acquisitive heritage.
  16. ↑ Cole-man-Lochner, L. (September 9, 1996). "New Lease on Employment: PEOs Enter the Lexicon of Business". The Record. p. B1.
  17. ↑ Automatic Data Processing, Inc. (September 26, 2008). "ADP Announces Move to the NASDAQ Stock Market". United States Securities and Exchange Commission (Press release).
  18. ↑ "Automatic Data Processing | 2020 Fortune 500". Fortune. July 8, 2020.
  19. ↑ "ADP recognized on FORTUNE Magazine 2020 World's Most Admired Companies List for 14th consecutive year". Fortune. January 21, 2020.
  20. ↑ "DiversityInc's 2020 Top 50". May 6, 2020. Archived from the original on August 16, 2020. Retrieved June 25, 2020.
  21. ↑ "Business Briefs". The Herald-News. July 10, 1975. p. 39 – via Newspapers.com.
  22. ↑ Robert, Virginie (August 31, 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).
  23. ↑ Automatic Data Processing Inc (September 21, 1999). "Automatic Data Processing Inc: Form 10-K (Annual Report) Filed 9/21/1999 for period ending 6/30/1999" (PDF).
  24. ↑ "ADP Signs Agreement to Acquire GSI" (Press release). Arthur Schmidt & Associates. Archived from the original on April 8, 2018. Retrieved April 7, 2018 – via The Free Library.
  25. ↑ Doz, Yves L.; Zollo, Maurizio; Larson, Jeanne (July 1, 2023). "ADP-GSI: The Integration Challenge". INSEAD. Retrieved February 21, 2025.
  26. ↑ "Ministers under fire over licence errors". Computer Weekly. February 4, 1999. Archived from the original on May 20, 2013.
  27. ↑ Paige, Michael. "ADP buys UK's Kerridge for $300M". MarketWatch. Retrieved May 13, 2018.
  28. 1 2 "Automatic Data Processing March 2007 Current Report, Form 8-K". EDGAR. March 21, 2007. Retrieved December 26, 2012.
  29. ↑ "ADP acquires Marcus Buckingham Company to expand talent portfolio". ADP. January 17, 2017.
  30. ↑ Rudd, Lauren (March 5, 2017). "Will ADP Yield Automatic Gains?" Sarasota Herald-Tribune (Sarasota, Florida). p. F3.
  31. ↑ "ADP acquires Global Cash Card". ADP. October 5, 2017.
  32. ↑ Deutscher, Maria (January 22, 2018). "Payroll giant ADP acquires worker management startup WorkMarket". siliconANGLE. Retrieved January 23, 2018.
  33. ↑ "ADP acquires WorkMarket to further extend human capital management". ADP. Retrieved January 22, 2018.
  34. ↑ "ADP Acquires Celergo". CPA Practice Advisor. August 1, 2018. Retrieved November 1, 2024.
  35. 1 2 "Acquisitions Aid Automatic Data Processing Amid Rising Expenses". Yahoo! Finance. August 28, 2024.
  36. ↑ "ADP buys automation startup Sora". unleash.ai. August 3, 2023.
  37. ↑ Zacks Equity Research (March 1, 2024). "Business Expansion, Acquisitions Aid ADP Amid Competition". Yahoo! Finance.
  38. ↑ "ADP raises annual revenue growth forecast following WorkForce Software acquisition". Reuters. October 30, 2024.
  39. ↑ "Automatic Data Processing April 2007 Current Report, Form 8-K". EDGAR. April 4, 2007. Retrieved December 26, 2012.
  40. ↑ "A.D.P. Absorbs New York Firm". The Record (Hackensack, New Jersey). p. 18.
  41. ↑ Oak, Sophie (November 12, 2020). "A brief history of CDK Global". Automotive 30% Club. Archived from the original on November 13, 2020. Retrieved May 6, 2021.
  42. ↑ "CDK Global to Be Acquired by Brookfield for $54.87 Per Share in Cash". www.businesswire.com. April 7, 2022. Retrieved September 21, 2023.
  43. ↑ "CDK Global LLC - Company Profile and News". Bloomberg.com. Retrieved September 21, 2023.
  44. ↑ "ADP Completes Cobalt Acquisition -- Is It Nirvana?". Dealer. Archived from the original on August 20, 2010.
  45. ↑ Luck, Patrick (December 2005). "AutoSuccess' Innovative Companies of the Year" (PDF). AutoSuccess. Systems Marketing, Inc. pp. 8–10. Archived from the original (PDF) on November 30, 2007. Retrieved June 29, 2024.
  46. ↑ Cliff Banks (April 1, 2006). "ADP Bolsters Website Efforts By Buying BZ". Ward's. Archived from the original on September 30, 2015. Retrieved December 26, 2006.
  47. ↑ "ADP plans to spin off dealer-services business". MarketWatch. April 10, 2014.
  48. ↑ "ADP Announces Post-Spin name of its Dealer Services Business". Archived from the original on August 21, 2014. Retrieved August 19, 2014.
  49. ↑ "ADP Downgraded by Moody's, S&P After Spin-Off". April 10, 2014. Retrieved April 10, 2014.
  50. ↑ Savage, Arline A.; Brannock, Danielle; Foksinska, Alicja (2024). "Chapter 9: Human Resources and Payroll Processes". Accounting Information Systems. Wiley. p. 122. Automatic Data Processing, Inc. (ADP) is a provider of human resources management software and services, including payroll.
  51. ↑ "Automatic Data (ADP) Benefits From Strong Business Model". Zachs Equity Research. Yahoo! Finance. August 28, 2024. Automatic Data Processing, Inc. ADP boasts a robust business model, marked by substantial recurring revenues, favorable profit margins, exceptional client loyalty, and efficient capital usage.
  52. ↑ "Form 10-K" (PDF). United States Securities and Exchange Commission. June 30, 2025. Our two reportable business segments are Employer Services and Professional Employer Organization ("PEO"), and are based on the way that management reviews the performance of, and makes decisions about, our businesses.
  53. ↑ "Form 10-K" (PDF). United States Securities and Exchange Commission. June 30, 2025. In order to serve the unique needs of our clients and their diverse types of businesses and workforce models, we provide a range of solutions that businesses of all types and sizes and across geographies can use to recruit, onboard, pay, manage, and retain their workforce. We address these broad market needs with our cloudbased strategic platforms: RUN Powered by ADP , serving over 940,000 small businesses; ADP Workforce Now , serving over 90,000 mid-sized and large businesses; and ADP Lyric HCM, serving large enterprise businesses.
  54. ↑ "Fiserv and ADP Partner to Build Small Business Management Platform". PYMNTS. November 19, 2024.
  55. ↑ Rice, David (September 3, 2025). "ADP Workforce Now Review: Pros, Cons, Features & Pricing". People Managing People.
  56. ↑ Thibodeau, Patrick (October 23, 2024). "ADP expands HR tools with Lyric HCM and WorkForce buy". TechTarget.
  57. ↑ DeSilver, Drew (November 5, 2024). "How ADP employment data compares with official BLS jobs reports". Pew Research Center.
  58. ↑ Alexander Kurov; Alessio Sancetta; Georg Strasser; Marketa Halova Wolfe (May 1, 2015). "Price Drift before U.S. Macroeconomic Newsy: Private Information about Public Announcements" (PDF). Journal of Financial and Quantitative Analysis. 54 (1). We augment this set by seven announcements, which are frequently discussed in the financial press: Automatic Data Processing (ADP) Employment, Building Permits, Existing Home Sales, the Institute for Supply Management (ISM) Non-Manufacturing Index, Pending Home Sales, and the Preliminary and Final releases of the University of Michigan (UM) Consumer Sentiment Index.
  59. ↑ "Fitch Affirms Automatic Data Processing at 'AA-'/'F1+'; Outlook Stable". Fitch Ratings. October 11, 2014.
  60. ↑ Alex Biesada (December 2007). Sally Alt; Adam Anderson; Jenn Barnier; Victoria Bernard (eds.). Hoover's Handbook of American Business. Vol. 1. US: D&B Hoovers. p. 112. ADP is expanding internationally and extending its services through acquisitions.
  61. ↑ "Maria Black". The Wall Street Journal. Maria Black currently works at Automatic Data Processing, Inc., as President, Chief Executive Officer & Director from 2023, ADP, Inc.
  62. ↑ "Automatic Data Processing | 2020 Fortune 500". Fortune. July 8, 2020.
  63. ↑ "Form 10-K" (PDF). United States Securities and Exchange Commission. June 30, 2025. As of June 30, 2025, our global team of associates consisted of approximately 67,000 persons.
  64. ↑ DeSilver, Drew (October 4, 2013). "Without government data, an alternative employment report". Pew Research Center. Retrieved February 21, 2025.
  65. ↑ Nutting, Rex (October 4, 2013). "With no jobs report, where can data junkies turn?". MarketWatch. Retrieved February 21, 2025.
  66. ↑ Salmon, Felix (September 1, 2022). "A tale of two employment datasets". Axios. Retrieved February 21, 2025.
  67. 1 2 Salmon, Felix (July 8, 2022). "ADP and Stanford ready econ stats fit for the 21st century". Axios. Retrieved February 21, 2025.
  68. ↑ Pickert, Reade (August 31, 2022). "U.S. companies added 132,000 jobs in August, new ADP data show". Bloomberg News – via The Spokesman-Review.
  69. ↑ Timiraos, Nick (October 22, 2025). "Fed Lost Access to Private Jobs Data Ahead of Government Shutdown". Wall Street Journal. Retrieved October 24, 2025.
  70. ↑ Wallace, Alicia (November 5, 2025). "The US economy added 42,000 private-sector jobs last month, more than expected". CNN.
[edit]
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