Key Stats
Automatic Data Processing stands as a global leader in human capital management solutions headquartered in Roseland, New Jersey. The company was founded in 1949 by Henry Taub and has evolved into one of the most trusted providers of payroll and HR services worldwide.
ADP operates through two primary business segments delivering comprehensive workforce solutions. The Employer Services segment provides cloud-based platforms for payroll processing, benefits administration, talent management, and compliance services to businesses of all sizes. The Professional Employer Organization segment offers employment administration through co-employment relationships.
The company maintains a significant presence across the human resources technology landscape with solutions serving small businesses to multinational enterprises. ADP processes payroll transactions for approximately one in six employees in the United States and continues expanding its global footprint through technological innovation and strategic acquisitions.
Automatic Data Processing Co-founders
Founded Automatic Payrolls with his brother Joe in 1949, establishing a manual payroll processing business that would grow into a multinational corporation serving millions.
Co-founded the company alongside his brother Henry, helping establish the foundational payroll services that launched the organization’s decades-long growth trajectory.
Joined the company in its early stages and became Chairman and CEO in 1952, leading the company through pivotal growth until his election to the United States Senate in 1982.
Automatic Data Processing History
ADP Market Cap
Automatic Data Processing maintains a market capitalization of approximately $114 billion as of October 2024, establishing its position among leading human capital management providers.
ADP Acquisitions
Automatic Data Processing has pursued strategic acquisitions throughout its history to strengthen its global capabilities and service offerings. The 1974 acquisition of Time Sharing Limited brought pioneering online computing expertise to the organization. This purchase positioned ADP as an early adopter of digital technologies in payroll processing.
During the 1990s, the company executed several European acquisitions to establish its international presence. The purchase of Autonom in Germany provided entry into the German market for payroll services. Kerridge Computer Co. in the United Kingdom added dealer management systems capabilities for the automotive industry. GSI in Paris expanded French market operations with comprehensive human resources and payroll services.
The 1998 acquisition of Chessington Computer Centre strengthened ADP’s presence in the United Kingdom public sector. This purchase brought extensive government administration services expertise and established relationships with UK governmental entities. The acquisition complemented existing European operations and expanded service capabilities.
In recent years, ADP has focused on acquiring technology companies to enhance its cloud-based platforms and artificial intelligence capabilities. These acquisitions have integrated advanced analytics, workforce management tools, and compliance automation into existing service offerings. The strategic purchases support ADP’s transition toward comprehensive human capital management solutions.
The company continues evaluating acquisition opportunities that align with its strategic priorities. Focus areas include international expansion, technological innovation, and specialized industry solutions. These targeted acquisitions strengthen ADP’s competitive position in the evolving workforce management landscape.
ADP Revenue
Automatic Data Processing generated annual revenue of $19.90 billion in fiscal year 2024, representing consistent growth in the human capital management sector.
ADP Competitors
Automatic Data Processing operates in a competitive human capital management market with numerous established players and emerging technology providers.
| Competitor | Primary Services |
|---|---|
| Paychex | Payroll processing, HR solutions, retirement services |
| Paycom | Cloud-based payroll, HR management, talent acquisition |
| Workday | Enterprise cloud applications, financial management, HR |
| Paylocity | Cloud payroll, HR software, workforce management |
| Ceridian Dayforce | HCM platform, continuous payroll, workforce solutions |
| UKG (Ultimate Kronos Group) | Workforce management, HR service delivery, payroll |
| Gusto | Small business payroll, benefits, HR tools |
| TriNet | Professional employer organization, HR outsourcing |
| Rippling | Payroll, benefits, IT management, workforce systems |
| BambooHR | HR software, applicant tracking, employee management |
FAQs
When was Automatic Data Processing founded?
Automatic Data Processing was founded in 1949 by Henry Taub and Joe Taub as Automatic Payrolls. Frank Lautenberg joined shortly after and became CEO in 1952. The company changed its name to ADP in 1957.
What services does ADP provide?
ADP provides comprehensive human capital management solutions including payroll processing, benefits administration, talent management, time and attendance tracking, retirement services, compliance management, and HR outsourcing through its professional employer organization services.
How many employees does ADP have?
Automatic Data Processing employed approximately 63,000 associates worldwide as of 2024. The company maintains operations across 140 countries and serves more than 1.1 million clients globally with comprehensive workforce management solutions.
What is ADP National Employment Report?
The ADP National Employment Report provides independent monthly measurements of United States private sector employment based on actual payroll data from over 500,000 companies with more than 26 million employees, offering insights into labor market trends.
Who are ADP main competitors?
ADP’s primary competitors include Paychex, Paycom, Workday, Paylocity, and Ceridian Dayforce. These companies offer similar payroll processing, HR management, and workforce solutions competing across various market segments and company sizes.