{"id":632,"date":"2006-12-05T05:57:07","date_gmt":"2006-12-05T13:57:07","guid":{"rendered":"https:\/\/systematichr.com\/?p=632"},"modified":"2006-12-05T05:59:42","modified_gmt":"2006-12-05T13:59:42","slug":"how-did-they-get-here-%e2%80%93-adp","status":"publish","type":"post","link":"https:\/\/systematichr.com\/?p=632","title":{"rendered":"How did they get here \u2013 ADP"},"content":{"rendered":"

Next in our \u201cHow did they get here\u201d series, I take a look at ADP, perhaps the most acquisitive organization in the payroll \/ HR \/ benefits space.\u00a0 As such, I certainly cannot begin to recount all of the activity that got ADP where it is in this space.\u00a0 I will however try to hit the highlights.<\/p>\n

First, however, to give an idea of how ADP seems to buy up everything in sight, look at these acquisition figures. These are the totals spent each year on acquisitions:<\/p>\n

1998 – $351 million
\n1999 – $107 million
\n2000 – $200 million
\n2001 – $\u00a0 75 million
\n2002 – $232 million
\n2003 – $270 million
\n2004 – $270 million
\n2005 – $422 million<\/p>\n

Now granted, some of these acquisitions fall outside of the HR space (they have a line of service called Dealer Services, for example), but you get the idea.\u00a0 In fact, the 2002 Annual Report<\/a> had this to say:<\/p>\n

\u201cYou can expect us to increase our acquisition activity even further, as we look to supplement our internal growth with strategic acquisitions that extend our markets and add applications to our product sets.\u201d<\/em><\/strong><\/p>\n

And look at this quote from the 2005 report:<\/p>\n

\u201cWe will increase our emphasis on acquisitions, including a focus on transactions larger than our historical experience and entry into adjacent markets where we bring some important synergies.\u201d<\/em><\/strong><\/p>\n

Did I read that right?\u00a0 Even LARGER<\/strong> acquisitions to come?\u00a0 Hmmmmmm.<\/p>\n

Anway, here is a chronological listing of some of the acquisition highlights with a brief description of the importance as I see it.\u00a0 Taken together, we can definitely see that this is how ADP got to where it is today. (Note there is a gap between announce dates and close dates, so there can be some discrepancy in the years of each of the activities below)<\/p>\n