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User:Justin at ADP/Complete ADP Updates

< User:Justin at ADP

Automatic Data Processing, Inc. (ADP) is an American multinational company that provides human resources management and payroll services and software. The company is headquartered in Roseland, New Jersey.

History

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Founding and early history

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In 1949, Henry Taub founded Automatic Payrolls, Inc. as a manual payroll processing business with his brother Joe Taub.[1][2] Frank Lautenberg joined the brothers in the company's infancy.[3] In 1954, Lautenberg, after successfully serving in sales and marketing, became a full-fledged partner with the two brothers.[4]

In 1957 the company installed a punched card system that would facilitate automatic data processing, replacing manual input calculators.[5] The next year the company changed its name to Automatic Data Processing.[6] In 1961, Oppenheimer & Company, one of ADP's clients, took the company public.[5] At that time the company had 300 clients, 125 employees, and revenues of approximately US$400,000.[7]

In 1962, ADP opened a Wall Street office to provide payroll and accounting services to brokerage firms.[8][9] This office eventually expanded into ADP's brokerage service division, which was spun off into Broadridge Financial Solutions in 1997.[10]

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.[11] 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.[12]

Expansion and growth

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In 1975, Frank Lautenberg succeeded Henry Taub as CEO. By that time, ADP's annual revenue had grown to $150 million and the company had around 5,000 employees.[13]

ADP acquired the online computer services company Time Sharing Limited (TSL) in 1974 and Cyphernetics in 1975.[14][15] By 1978, ADP had acquired more than 60 companies, including 50 service bureaus in the United States and four in Europe.[16]

By 1981, ADP had approximately 100,000 clients and total annual revenues exceeding $500 million, making it the world's largest independent computer services company.[17][18] At that time, ADP processed paychecks for five percent of the U.S. workforce.[17]

In early 1983, Frank Lautenberg left ADP after being elected to the United States Senate.[19] ADP president Josh Weston assumed the additional title of CEO.[19] From 1985 onward, ADP's annual revenues exceeded the $1 billion mark.[20][21]

Consolidation

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In the early 1990s, ADP made several strategic acquisitions of payroll competitors,[22] most notably Bank of America's $110 million revenue business services division in 1992[23] and the European payroll and human resource services company GSI in 1995.[24] ADP also established itself in the professional employer organization sector through its acquisition of two Florida-based companies, Staff Management Systems in 1996 and the Vincam Group in 1999.[25][26]

ADP continued expanding in Europe during this period, beginning with the acquisition of Autonom, a German computing services company.[27] In 1999, ADP acquired UK-based Chessington Computer Centre, a supplier of administration services to the UK Government.[28][29] In 2006, ADP acquired Kerridge Computer Co. Ltd., a UK-based dealership management system provider,[30] and BZ Results, a US-based automotive marketing and market research services provider.[31][32]

In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, resulting in approximately US$2 billion in revenue being removed from ADP's total yearly revenue.[33] 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.[34]

On October 21, 2008, ADP switched its stock listing to the NASDAQ Global Select Market.[35]

2010 to present

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In 2010, ADP acquired the automotive marketing company Cobalt.[36] On April 7, 2014, ADP laid off several dealer services associates as part of a reorganization, and three days later, it announced plans to spin off the dealer services division as a standalone company.[37] 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.[38] Both S&P and Moody's downgraded ADP to AA in April 2014, after the dealer services unit was spun off.[39]

Beginning with the January 2017 acquisition of The Marcus Buckingham Company (TMBC).[40], ADP pursued several acquisitions that served to reinforce its existing customer base.[41] In January 2018, ADP acquired WorkMarket, a New York City–based workforce management startup.[42][43] Later that same year, the company announced the acquisition of Celergo, a global payroll management service company.[44][45]

In 2023, ADP acquired workflow automation tool Sora,[46][47] and launched a corporate venture capital arm, ADP Ventures.[48] In October 2024, ADP acquired WorkForce Software, a workforce management services provider.[49] The next month ADP partnered with Fiserv to offer a small business management system.[50]

In 2025, Fortune included ADP on its World's Most Admired Companies list for the 19th consecutive appearance.[51][52]

Business model and operations

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Automatic Data Processing provides human resource management software and services, including payroll, [53] and operates with a recurring revenue business model.[54] ADP operates through two business segments: employer services and professional employer organization.[55] Key products include RUN Powered by ADP, an HR and payroll platform for small businesses, ADP Workforce Now, a HCM platform for mid-sized and large businesses,[56][57][58] and ADP Lyric HCM, an enterprise HCM platform.[59] ADP also issues the National Employment Report, which analyzes aggregated and anonymized payroll data from more than 26 million workers.[60] The report is widely cited in economic reporting and analysis.[61]

The company is headquartered in Roseland, New Jersey and operates in more than 140 countries and territories.[62] ADP has expanded its international presence and extended its services through acquisitions.[63]

Maria Black has served as CEO since 2023.[64] As of 2025, the company was ranked 220 on the Fortune 500 list of the largest United States corporations by revenue,[65] and had around 67,000 employees.[66]

Employment data

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ADP has been used as a source of private-sector employment data.[67][68][69] ADP's National Employment Report launches two days before the United States Bureau of Labor Statistics reports.[70] In 2022, it was redesigned in collaboration with Stanford's Digital Economy Lab.[70][71]

As early as 2018, the Federal Reserve used ADP employment and earnings data. In mid-2025, ADP stopped providing data to the Federal Reserve.[72] That same year, ADP began issuing the NER Pulse, a weekly preliminary U.S. estimate of the ADP National Employment Report.[73]

References

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  1. ↑ 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.
  2. ↑ 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.
  3. ↑ 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.
  4. ↑ 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.
  5. 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. Cite error: The named reference "MayerQuoteTwo" was defined multiple times with different content (see the help page).
  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. The company, initially called Automatic Payrolls, changed its name to Automatic Data Processing in 1958 and went public in 1961.
  7. ↑ 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
  8. ↑ 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.
  9. ↑ "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.
  10. ↑ "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.
  11. ↑ 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.
  12. ↑ "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.
  13. ↑ Arnold, Laurence (June 3, 2013). "Frank Lautenberg, U.S. Senator From New Jersey, Dies at 89". Bloomberg. In 1975, when Lautenberg succeeded Taub as chief executive officer, ADP had annual revenue of $150 million and 5,000 employees.
  14. ↑ Miller, James. "Time Sharing". James Miller. When TSL was taken over by ADP in 1974, I sold my share in the program and they then changed the name to APECS.
  15. ↑ "Business Briefs". The Herald-News. July 10, 1975. p. 39 – via Newspapers.com.
  16. ↑ Healy, Caroline (1988). Hast, Adele; Derdak, Thomas (eds.). International Directory of Company Histories. Vol. 3. US: St. James Press. p. 118. ADP continued its steady growth and continued to develop its strong market position. By 1978, it had acquired more than 60 companies, it had 50 service bureaus around the United States and 4 overseas, and its yearly return on shareholder's equity was 30% higher than IBM, Digital Equipment Corporation, or Control Data Corporation.
  17. 1 2 Cunniff, John (July 1, 1981). "The Evolution of a Payroll Processing Concern". Associated Press – via Nexis. Twenty-nine years later the company, its name modernized to Automatic Data Processing Inc. and with Lautenberg as chairman, grosses $500 million a year. It serves 100,000 clients. It now maintains, processes, calculates, analyzes, prints and projects an infinite variety of data. It is, in effect, the office staff of thousands of organizations: manufacturers, brokers, distributors, pension funds, banks. But it sticks to its past too: It processes paychecks for 5 percent of U.S. civilian workers.
  18. ↑ Schriber, John (July 6, 1981). "ADP trades up". Forbes – via Nexis. What was once a minuscule payroll processing company when Lautenberg joined the firm in the early Fifties is now -- at $46 million in earnings and $245 million in net worth -- the world's largest independent computer services company. However, with revenues of over $500 million, ADP is second to Computer Sciences Corp. in volume.
  19. 1 2 "New chief at Automatic Data". The New York Times. December 6, 1982. Mr. Weston will assume the additional title of chief executive officer when Mr. Lautenberg leaves for Washington in early January.
  20. ↑ Conniff, James C.G. (November 30, 1986). "Lautenberg's successor at A.D.P.: An open, on-the-go C.E.O." The New York Times. Having served as A.D.P.'s chief executive officer following Mr. Lautenberg's successful Senate campaign, Mr. Weston, 58 years old, was also elected its chairman earlier this year, or just in time to preside over the company's entry into America's corporate aristocracy with annual sales of $1.2 billion for 1985.
  21. ↑ "ADP; To purchase Bunker Ramo subsidiary from Allied-Signal Inc" (Press release). Business Wire. November 15, 1985 – via Nexis. ADP, with over $1 billion in revenues, is the largest independent computing services firm, with more than 125,000 clients in the United States, Canada, Europe and Brazil.
  22. ↑ Talbot, James R.; Spain, Patrick J., eds. (1996). Hoover's Handbook of American Companies, 1996. US: D&B Hoovers. p. 122. ADP made several strategic purchases during the early 1990s. These included the 1992 purchase of BankAmerica Corp.'s 17,000-client Business Services Division.
  23. ↑ Hecht, Henry R. (1994). Kepos, Paula; Derdak, Thomas (eds.). International Directory of Company Histories. Vol. 9. US: St. James Press. p. 50. While traditional banking institutions were a major competitor for payroll services, ADP gradually acquired such payroll businesses, often arranging for the bank to remain the up-front marketing agent while ADP operated the service. The largest such acquisition (indeed, ADP's largest single acquisition ever) was the takeover of Bank of America's 17,000-client, $110 million revenue payroll business in May 1992.
  24. ↑ Doz, Yves L.; Zollo, Maurizio; Larson, Jeanne (July 1, 2023). "ADP-GSI: The Integration Challenge". INSEAD. Retrieved February 21, 2025.
  25. ↑ Huntley, Helen (September 16, 1996). "Automatic Data Processing Buyout Gives Firm Access to Leasing Business". St Petersburg Times – via Nexis. Automatic Data Processing Inc. of Roseland, N.J., has entered the employee leasing business with the acquisition of Staff Management Systems of Florida Inc., a 12-year-old Tampa-based company.
  26. ↑ Schwab, Robert (November 21, 1999). "The Denver Post Small Business Column". The Denver Post – via Nexis. Earlier this year, ADP wanted to expand its PEO services nationwide, so it bought The Vincam Group Inc., a large Florida PEO that in 1997 had bought Staff Administrators, a company founded in Denver in 1991 by Robert Quinette.
  27. ↑ "ADP acquires computer firm". Automotive News. Crain Communications. January 20, 1992 – via Nexis. Automated Data Processing Inc. has acquired Autonom Computer Beteiligungs GmbH, headquartered near Dusseldorf, Germany, for an undisclosed amount. Autonom is one of the leading independent auto dealership computing services companies in Germany, serving over 1,000 dealerships.
  28. ↑ "ADP to acquire Chessington Computer Services" (Press release). M2 Presswire. September 22, 1998 – via Nexis. Automatic Data Processing, Inc.'s UK operation (ADP) announced today that it has entered into an agreement to acquire the business of The Chessington Partnership (Chessington), formed when the government payroll operation at Chessington was privatised on 31 July 1996.
  29. ↑ "Form 10-K" (PDF). United States Securities and Exchange Commission. June 30, 1999. In fiscal 1999, ADP Europe acquired three companies: Chessington (UK), Realisator (Switzerland) and Adid (France). [...] Employer Services' European and Latin American operations already comprise 12% of the consolidated Employer Services worldwide revenues.
  30. ↑ Paige, Michael. "ADP buys UK's Kerridge for $300M". MarketWatch. Retrieved May 13, 2018.
  31. ↑ 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.
  32. ↑ 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.
  33. ↑ "Automatic Data Processing March 2007 Current Report, Form 8-K". EDGAR. March 21, 2007. Retrieved December 26, 2012.
  34. ↑ "Automatic Data Processing April 2007 Current Report, Form 8-K". EDGAR. April 4, 2007. Retrieved December 26, 2012.
  35. ↑ Automatic Data Processing, Inc. (September 26, 2008). "ADP ANNOUNCES MOVE TO THE NASDAQ STOCK MARKET". United States Securities and Exchange Commission (Press release).
  36. ↑ "ADP Completes Cobalt Acquisition -- Is It Nirvana?". Dealer. Archived from the original on August 20, 2010.
  37. ↑ "ADP plans to spin off dealer-services business". MarketWatch. April 10, 2014.
  38. ↑ "ADP Announces Post-Spin name of its Dealer Services Business". Archived from the original on August 21, 2014. Retrieved August 19, 2014.
  39. ↑ "ADP Downgraded by Moody's, S&P After Spin-Off". April 10, 2014. Retrieved April 10, 2014.
  40. ↑ Bader, Emily (January 17, 2017). "ADP acquires The Marcus Buckingham Co. to expand talent portfolio". NJBIZ. BridgeTower Media.
  41. ↑ "Acquisitions Aid Automatic Data Processing Amid Rising Expenses". Zacks Equity Research. Yahoo! Finance. August 28, 2024. Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham are a few of the acquired companies that have strengthened ADP's customer base and assisted it in expanding operations in the international markets. Automatic Data Processing continues to acquire companies that strategically fit its overall business mix and are easy to integrate over the long term. The recent acquisition of Honu HR, Inc. DBA Sora improved its strategy to streamline HR processes through automation, combining Sora's user-friendly platform with ADP's HCM solutions for enhanced efficiency and employee experiences.
  42. ↑ Deutscher, Maria (January 22, 2018). "Payroll giant ADP acquires worker management startup WorkMarket". siliconANGLE. Retrieved January 23, 2018.
  43. ↑ "ADP acquires WorkMarket to further extend human capital management". ADP. Retrieved January 22, 2018.
  44. ↑ "ADP Acquires Celergo". CPA Practice Advisor. August 1, 2018. Retrieved November 1, 2024.
  45. ↑ Lynley, Matthew (January 22, 2018). "ADP acquires workforce management software startup WorkMarket". TechCrunch.
  46. ↑ "Acquisitions Aid Automatic Data Processing Amid Rising Expenses". Yahoo! Finance. August 28, 2024.
  47. ↑ Zacks Equity Research (March 1, 2024). "Business Expansion, Acquisitions Aid ADP Amid Competition". Yahoo! Finance.
  48. ↑ "ADP Launches Venture Capital Arm, Focuses on Innovation". Zacks Equity Research. Yahoo! Finance. October 4, 2023.
  49. ↑ "ADP raises annual revenue growth forecast following WorkForce Software acquisition". Reuters. October 30, 2024.
  50. ↑ "Fiserv and ADP Partner to Build Small Business Management Platform". PYMNTS. November 19, 2022.
  51. ↑ "World's Most Admired Companies". Fortune. 2025.
  52. ↑ Barth, Jill (December 16, 2025). "The Maria Black effect: ADP tops CEO list with culture ratings to match". HR Executive. In January 2025, Fortune named ADP one of the World's Most Admired Companies for the 19th consecutive year.
  53. ↑ 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.
  54. ↑ "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.
  55. ↑ "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.
  56. ↑ "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.
  57. ↑ "Fiserv and ADP Partner to Build Small Business Management Platform". PYMNTS. November 19, 2024.
  58. ↑ Rice, David (September 3, 2025). "ADP Workforce Now Review: Pros, Cons, Features & Pricing". People Managing People.
  59. ↑ Thibodeau, Patrick (October 23, 2024). "ADP expands HR tools with Lyric HCM and WorkForce buy". TechTarget.
  60. ↑ DeSilver, Drew (November 5, 2024). "How ADP employment data compares with official BLS jobs reports". Pew Research Center.
  61. ↑ 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.
  62. ↑ "Fitch Affirms Automatic Data Processing at 'AA-'/'F1+'; Outlook Stable". Fitch Ratings. October 11, 2014.
  63. ↑ 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.
  64. ↑ "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.
  65. ↑ "Automatic Data Processing | 2020 Fortune 500". Fortune. July 8, 2020.
  66. ↑ "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.
  67. ↑ DeSilver, Drew (October 4, 2013). "Without government data, an alternative employment report". Pew Research Center. Retrieved February 21, 2025.
  68. ↑ Nutting, Rex (October 4, 2013). "With no jobs report, where can data junkies turn?". MarketWatch. Retrieved February 21, 2025.
  69. ↑ Salmon, Felix (September 1, 2022). "A tale of two employment datasets". Axios. Retrieved February 21, 2025.
  70. 1 2 Salmon, Felix (July 8, 2022). "ADP and Stanford ready econ stats fit for the 21st century". Axios. Retrieved February 21, 2025.
  71. ↑ Pickert, Reade (August 31, 2022). "U.S. companies added 132,000 jobs in August, new ADP data show". Bloomberg News – via The Spokesman-Review.
  72. ↑ Timiraos, Nick (October 22, 2025). "Fed Lost Access to Private Jobs Data Ahead of Government Shutdown". Wall Street Journal. Retrieved October 24, 2025.
  73. ↑ Wallace, Alicia (November 5, 2025). "The US economy added 42,000 private-sector jobs last month, more than expected". CNN.
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