ADP to Acquire Cobalt, Leading Provider of Digital Marketing Solutions for the Automotive Industry
09 Julho 2010 - 9:40AM
Automatic Data Processing, Inc. (Nasdaq:ADP) has entered into a
definitive agreement to acquire Cobalt for approximately $400
million, in cash, Gary C. Butler, president and chief executive
officer, announced today. The transaction is subject to normal
regulatory review and is expected to close in four to six weeks.
Commenting on the transaction, Mr. Butler said, "I am pleased to
announce this transaction. Acquisitions that complement our core
businesses are a key part of ADP's five-point strategic growth
program and the primary focus of our capital allocation
strategy. Cobalt is the leading provider of digital marketing
solutions to automotive manufacturers and dealers in North
America. This transaction aligns with ADP Dealer Services'
global layered applications strategy to increase "share of wallet"
beyond its core dealer management system offering. We believe
the timing of this transaction is optimal as online advertising
spend is expected to continue to outpace that of traditional
channels in the U.S."
Cobalt is privately held and headquartered in Seattle,
Washington. ADP expects the transaction to be slightly
accretive in the first year, with continued positive earnings
contributions anticipated in subsequent years.
ADP's capital allocation strategy also includes returning excess
cash to shareholders through share repurchases and
dividends. For the fiscal year ended June 30, 2010, ADP
repurchased about $18.2 million shares for over $765 million, and
additionally paid nearly $675 million in dividends to its
shareholders. Nearly 29 million shares remain available for
purchase under the current board of directors authorization.
ADP will be hosting an analyst conference call on Monday July
12, 2010 at 4:00 p.m. EDT to discuss the transaction. Gary
Butler, ADP's president & chief executive officer, Christopher
Reidy, ADP's chief financial officer, Steve Anenen, president of
ADP Dealer Services, and John Holt, chairman and chief executive
officer of Cobalt will be participating on the call. A
live webcast of the call will be available to the public on a
listen-only basis. To listen to the webcast go to ADP's home
page, www.adp.com, or ADP's Investor Relations home page,
http://www.investquest.com/InvestQuest/a/adp/, and click on the
webcast icon.
As announced previously, ADP is scheduled to report its
financial results for fiscal 2010 on Thursday, July 29, 2010 before
the opening of the Nasdaq, followed by a webcast at 8:30 a.m.
EDT. The webcast can be accessed through ADP's home page,
www.adp.com, or ADP's Investor Relations home page,
http://www.investquest.com/InvestQuest/a/adp/. In addition,
the slide presentation will be available to download and print
approximately 60 minutes before the webcast at ADP's Investor
Relations home page. A replay of the webcast will be available
for approximately two weeks after the event and can be accessed in
the same manner as the live webcast. ADP's news releases,
current financial information, SEC filings and Investor Relations
presentations are accessible at the same Web site.
About ADP
Automatic Data Processing, Inc. (Nasdaq:ADP), with nearly $9
billion in revenues and about 570,000 clients, is one of the
world's largest providers of business outsourcing
solutions. Leveraging 60 years of experience, ADP offers a
wide range of HR, payroll, tax and benefits administration
solutions from a single source. ADP's easy-to-use,
cost-effective 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 and recreational vehicle dealers throughout the
world. For more information about ADP or to contact a
local ADP sales office, reach us at 1.800.225.5237 or visit the
company's website at www.ADP.com.
This document and other written or oral statements made from
time to time by ADP may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements that are not historical in nature and which may be
identified by the use of words like "expects," "assumes,"
"projects," "anticipates," "estimates," "we believe," "could be"
and other words of similar meaning, are forward-looking statements.
These statements are based on management's expectations and
assumptions and are subject to risks and uncertainties that may
cause actual results to differ materially from those expressed.
Factors that could cause actual results to differ materially from
those contemplated by the forward-looking statements include: ADP's
success in obtaining, retaining and selling additional services to
clients; the pricing of products and services; changes in laws
regulating payroll taxes, professional employer organizations and
employee benefits; overall market and economic conditions,
including interest rate and foreign currency trends; competitive
conditions; auto sales and related industry changes; employment and
wage levels; changes in technology; availability of skilled
technical associates and the impact of new acquisitions and
divestitures. ADP disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. These risks and uncertainties, along
with the risk factors discussed under "Item 1A. - Risk Factors" in
our Annual Report on Form 10-K for the fiscal year ended June 30,
2009, should be considered in evaluating any forward-looking
statements contained herein.
CONTACT: Automatic Data Processing, Inc.
Investor Relations
Elena Charles
973.974.4077
Debbie Morris
973.974.7821
Automatic Data Processing (NASDAQ:ADP)
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