ADP (company)

Automatic Data Processing, Inc.

File:ADP Logo.svg ADP logo
Company type	Public
Industry	Human resources management software and services
Predecessor	Automatic Payrolls, Inc.
Founded	1949 (1949)
Founder	Henry Taub
Headquarters	Roseland, New Jersey , United States
Area served	Worldwide
Products	Human resources, payroll, tax compliance, benefits administration solutions
Number of employees	64,000 (2024)
Website	www.adp.com

Automatic Data Processing, Inc. (ADP) is a U.S.-based company specializing in human resources management software and related services, with its main office located in Roseland, New Jersey.

History

Established in 1949 by entrepreneur Henry Taub under the name Automatic Payrolls, Inc., ADP initially operated as a manual payroll processing firm alongside his brother Joe Taub and early collaborator Frank Lautenberg. The company adopted the name Automatic Data Processing, Inc. in 1961, integrating punched card technology and mainframe computing into its operations. That same year marked ADP’s initial public offering, boasting 300 clients, a workforce of 125 employees, and revenues close to . International expansion began in 1965 with the opening of a UK branch. By 1970, Lautenberg had become president as ADP shifted its stock listing from the American Stock Exchange to the New York Stock Exchange. Lautenberg held the positions of CEO and chairman until his election to the U.S. Senate in 1982.

Starting in 1985, ADP exceeded $1 billion in yearly revenue while handling payroll for an estimated one-fifth of the U.S. labor force. In the 1990s, the company diversified by entering the professional employer organization (PEO) sector through targeted acquisitions.

On October 21, 2008, ADP transitioned its stock trading to the NASDAQ Global Select Market. In 2020, it was ranked 227 on the Fortune 500 list by revenue and earned a spot on Fortune Magazine's "World's Most Admired Companies" for fourteen years running. Moreover, ADP received DiversityInc’s highest accolades for diversity and inclusion for eleven consecutive years.

Currently, ADP employs around 64,000 staff globally. Its fiscal year 2024 revenue reached $19 billion, showcasing strong financial results fueled by its extensive suite of human resources, payroll, tax compliance, and benefits administration solutions.

Acquisitions

ADP has grown its market footprint through a series of strategic acquisitions beginning with pioneering online computer service companies such as Time Sharing Limited (TSL) in 1974 and Cyphernetics in 1975.

In its evolution into a professional employer organization during the mid-1990s, ADP acquired multiple firms including German company Autonom and payroll and HR service provider GSI. The acquisition of UK-based Chessington Computer Centre, servicing the UK Government, followed in 1998.

In 2006, ADP purchased Kerridge Computer Co. Ltd., a UK provider of dealer management systems. The next year saw ADP spin off its Brokerage Service Group to form Broadridge Financial Solutions, Inc. In 2017, ADP enhanced its talent management offerings by acquiring The Marcus Buckingham Company (TMBC) and bolstered its digital payments capabilities through the acquisition of Global Cash Card.

Further expanding globally, ADP acquired WorkMarket in 2018—a New York-based platform for managing freelancers and contractors—alongside Celergo, a global payroll management service. In 2023, the company added workflow automation software provider Sora to its portfolio. Most recently, in October 2024, ADP acquired WorkForce Software to broaden its management services range and strengthen revenue growth prospects.

These acquisitions underscore ADP's strategic focus on expanding its product and service portfolio to improve competitive positioning and sustain long-term growth within the human capital management sector.

Broadridge Financial Solutions

In 2007, ADP separated its Brokerage Service Group, resulting in the creation of Broadridge Financial Solutions, Inc.. This move decreased ADP's yearly revenue by approximately US$2 billion. On March 23, 2007, shareholders were granted one share of Broadridge stock for every four shares of ADP stock they owned.

CDK Global, LLC

Originally known as ADP Dealer Services, CDK Global was launched on October 1, 2014, delivering technology solutions to automotive dealerships and manufacturers. To bolster this segment, ADP acquired the automotive marketing company Cobalt in 2010. Earlier, in 2006, ADP had purchased BZ Results for $125 million, a firm noted for its innovative approach to automotive marketing.

In April 2014, ADP underwent restructuring and declared its intention to spin off Dealer Services into an independent company. The new organization was named CDK Global—an acronym derived from Cobalt, Dealer Services, and Kerridge. Following this separation, credit rating agencies S&P and Moody's downgraded ADP’s credit rating to AA.

This divestiture enabled ADP to concentrate on its primary human resources and payroll services while allowing CDK Global to independently pursue growth within the automotive technology sector.

Employment Data

ADP’s National Employment Report serves as a significant indicator of private-sector employment trends and is frequently utilized alongside or as an alternative to reports from the United States Bureau of Labor Statistics. Released one day prior to the BLS data, this report underwent a redesign in 2022 in partnership with Stanford’s Digital Economy Lab, improving its utility for economic assessment and corporate decision-making. It provides timely employment insights that assist market participants and business leaders, reinforcing ADP's prominent role in labor market analytics.