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Automatic Data Processing, LLC
Type Public (NASDAQADP)
Founded Paterson, New Jersey (1949)
Headquarters Roseland, New Jersey, U.S.
Key people Gary C. Butler, President & CEO
Arthur F. Weinbach, Chairman
S. Michael Martone, COO
Christopher R. Reidy, CFO[1]
Industry Business Process Outsourcing
Revenue US $8.7 billion USD (2008) [1]
Net income US $1.23 billion (2008) [2]
Employees 47,000 (2008)

Automatic Data Processing, Inc. (NASDAQADP) is a global provider of integrated computing and business outsourcing. ADP has nearly $8 billion in revenues[2] and approximately 585,000 clients.[3] ADP offers a range of HR, payroll, tax and benefits administration. ADP is headquartered in Roseland, New Jersey.[4]



ADP (Automatic Data Processing) was founded in 1949 by Henry Taub in Paterson, New Jersey as Automatic Payrolls, Inc. The first ADP office, above Grinker’s Ice Cream shop, processed payroll manually with a bookkeeping machine, addressograph equipment, calculators and comptometers. The company's first full-time salesman was future U.S. Senator Frank Lautenberg who joined in that capacity in January 1954.[5] The company’s first account was New Era Dye and Finishing in Fair Lawn, New Jersey. With the introduction of punched card machines, mainframe computers and check printing machines, Automatic Payrolls became Automatic Data Processing in 1958.[6]

ADP became a public company in 1961, with an initial stock price of $3. In the next year, Brokerage Services division was developed to serve the high volume transaction needs of major stock brokerages on Wall Street. The company proceeded to offer Dealer Services to automotive dealers to handle inventory and accounting transactions. In 1974, ADP extended into the international market with an office in The Netherlands,and London and later in the decade added Claims Services.[7] In 1975, ADP acquired The Cyphernetics Corporation, a timesharing business headquartered in Ann Arbor, MI.Cyphernetics

Today, ADP employs more than 42,000 associates globally, who serve for more than 570,000 companies of all sizes – small, mid-market and enterprise.

ADP is one of the world's largest providers of business outsourcing, with operations in many countries.

Business Units



ADP GlobalView is the newest division, and provides outsourced human resource services. The division's operations are in centred in 3 locations: France (Europe), Australia (Asia/Pacific), and Canada (Americas).

Employer Services

An ADP Model 4500 timecard reader

The Employer Services business unit is the oldest, largest and most profitable of ADP's divisions. It includes payroll processing, HR outsourcing, 401(k)/Retirement Services, Insurance Services, Professional Employer Organization (PEO), Time and Labor Management, Small Business Services (SBS), Tax and Compliance Management, Benefits Administration, Screening and Selection Services, and Administrative Service Offerings (ASO). Currently, one in six working Americans have their paychecks processed by the company.[8]

Dealer Services

In 1972, Dealer Services was created for automobile dealer front end management, business office, parts and service departments. ADP maintains three DMS lines in the United States,[9][10] and many more in other countries, which are offered via on-site distributed model or in a hosted ASP Managed Service model. Additional products include CRM, Network services, OEM integration, IP-Telephony and Web marketing. The Dealer Services division of ADP has $1.3B in annualized revenues.

Claims Services

ADP's Claims Services was created to assist insurance companies with property and casualty claims, automotive recycling, and collision repair in 1979. This division was sold off because its growth potential was far less than the other divisions of the company.

Brokerage Services

This division of ADP was created in 1962 to service stock brokerages. Oppenheimer & Co. became the first client, averaging 300 trades per day. By 1999, ADP was processing over a million trades in a day. This business was spun off in 2007 into a company called Broadridge Financial Solutions (NYSEBR), removing about $2 billion from ADP's total yearly revenue.[11]


  • As of 2009, it is one of only four US companies rated Aaa by Moody's, indicating that it is expected to repay its debt under any circumstances.[12]
  • In 2003, 2004, and 2005, ADP is one of the top 10 companies in North America AAA/Aaa rated by both S&P and Moody's.[13][14][15]
  • In 2006, ADP ranked #2 on InformationWeek 500's top 250 Innovators.[16]
  • In 2008, ADP was named to the Training Top 125 List by Training magazine. ADP ranked 20th and was one of only five first-time entrants that made it into the top 50 on the 2008 list.[17]
  • In 2009, ADP was again named to the Training Top 125 List by Training magazine. ADP ranked 12th in 2009 and 20th in 2008. These rankings reflect ADP’s strong training and development programs.[18]

BZ Results

BZ Results (Automotive Dealer Services), winner of the 2006 “Innovative Company of the Year”,[19][20] was purchased by ADP in 2006.[21] At the time, BZ Results was valued at $125 million.


  1. ^ ADP Directors and Corporate Officers
  2. ^ Automatic Data Processing (ADP) 2007 Summary Annual Report (pg. 3)
  3. ^ Automatic Data Processing (ADP) 2007 Summary Annual Report (pg. 1)
  4. ^ Automatic Data Processing, Inc. (ADP), Yahoo! Finance. Accessed July 14, 2008.
  5. ^ ADP Investor Relations--50 Year History, 1949-1999
  6. ^ Jeffrey R. Yost (2005). The Computer Industry. Greenwood Press. ISBN 0313328447. 
  7. ^ Edward J. Kanarkowski (1999) (PDF). ADP 50th Anniversary Book. ADP. 
  8. ^ College Savings Boosted by ADP's 529 Payroll Deduction Program
  9. ^ Dealt Services ARG
  10. ^ Dealer Services Web Suite
  11. ^ ADP Completes Spin-off of Brokerage Services Group Business
  12. ^ Buffett loses top credit rating, BBC, 9 April 2009
  13. ^ Automatic Data Processing (ADP) 2003 Summary Annual Report (pg. 6)
  14. ^ Automatic Data Processing (ADP) 2004 Summary Annual Report (pg. 14)
  15. ^ Automatic Data Processing (ADP) 2005 Summary Annual Report (pg. 6)
  16. ^ "InformationWeek 500: Top 250 Innovators" (pdf). 2006-09-11. Retrieved 2007-09-22. 
  17. ^ "Training Top 125: 2008" (pdf). 2008-02-06. Retrieved 2008-02-18. 
  18. ^ "Training Top 125: 2009" (pdf). 
  19. ^ Sean Wolfington. AutoSuccess Magazine. Retrieved March 6, 2007.
  20. ^ Auto Success magazine (pg. 8-10).
  21. ^ Cliff Banks (April 1, 2006). "ADP Bolsters Website Efforts By Buying BZ". Retrieved 2006-12-26. 

External links

Employer Services
Automotive Dealer Services
Careers at ADP


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