ADP History – Stable, Reliable and Profitable
"We formed an effective trio, with complementary strengths--me in accounting, Joe in
organization, and Frank in marketing--and very compatible in personality and business
style." – Henry Taub, Founder of ADP, Inc.
Automatic Data Processing, Inc. (Nasdaq: ADP) was founded in 1949 by a Paterson, New Jersey businessman named, Henry Taub under the name of Automatic Payrolls, Inc. The company’s first account was New Era Dye and Finishing in Fair Lawn, New Jersey. In 1958, the company changed its name to Automatic Data Processing and began using new technology for its time like punch card machines, check printing machines, and mainframe computers. ADP’s first full-time salesman was future U.S. Senator Frank Lautenberg. In 1961, ADP became a public company.
Throughout its remarkable 60 year history, ADP’s business model remains sound to this very day – providing transaction-based information processing and other services that are mission-critical to a client's business. Since virtually all of the transactions we perform are repetitive in nature, they also generate reliable and predictable streams of revenue that has weathered virtually every economic cycle for the past six decades.
Furthermore, through the decades, the story of ADP has illustrated a number of principles that still guide the company:
- Focusing on business markets that offer significant growth opportunities, recurring revenue, the chance to be the industry leader, and where clients have significant service needs.
- Embracing technological change to enhance product and service offerings.
- Attracting and retaining motivated, talented people who are committed to our aspirations and who help us win in the marketplace.
Today ADP, with more than $10 billion in revenues and approximately 600,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range of human resource, payroll, tax and benefits administration solutions from a single source. ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.
Important dates in ADP History:
1949 - Henry Taub, a 21-year-old New Jersey accountant, started a manual payroll processing business called Automatic Payrolls, Inc.
1957 - ADP introduced an automated punch card, a forerunner of the mainframe computer, with the capability of increasing efficiency and capacity for payroll processing.
1961 - The company, now called Automatic Data Processing, Inc., went public and leased its first computer, an IBM 1401. ADP had 300 clients, 125 employees, and revenues topping $400,000.
1972 - ADP Dealer Services became ADP's third major business unit offering account and inventory service to auto dealers. It was a business that fit the ADP economic model for success: offering significant growth possibilities, recurring revenue, and the chance to be an industry leader.
1981 - ADP's annual revenues exceeded $500 million and then doubled just four years later when the $1 billion mark was surpassed. ADP processed the paychecks for about 10% of the U.S. workforce and became the market leader over the next several years.
1990 - Through the 1990s, clients that once were content to outsource applications to a service provider looked to outsource entire functions. They no longer wanted ADP to provide services to their HR department...they wanted ADP to be their HR department. That prompted ADP to become a professional employer organization (PEO).
1990 - Another significant growth opportunity was overseas. In 1990 Dealer Services acquired Autonom, a German company.
1995 - ADP acquired the largest payroll and human resource services company in Europe: GSI, headquartered in Paris.
2000 - The early twenty-first century saw continued growth and innovation at ADP. One example is the introduction of GlobalViewSM – ADP’s comprehensive global service solution for payroll processing and human resources administration. GlobalViewSM enables end-to-end, standardized payroll processing and HR across multiple countries on a single platform.
2005 - Dealer Services extended its global position by acquiring Kerridge Computer Co. Ltd., the leading dealer management systems (DMS) provider to auto dealers in the UK, expanding its geographic coverage from 14 countries on two continents to a total of 41 countries on four continents.
2006 - Gary Butler becomes ADP’s fifth CEO
2011 - Carlos Rodriguez becomes ADP’s sixth CEO