ADP to Spin off Dealer Services; Set to Go Public
ADP, a leading global provider of Human Capital Management (HCM) solutions, plans to separate its Dealer Services business, including ADP Lightspeed, into an independent publicly traded company through a tax-free spin-off of 100% of Dealer Services to ADP shareholders.
“Consistent with our strategy to grow our position as a global provider of HCM solutions, we have concluded that the separation of Dealer Services will allow both companies to focus on their respective industries,” said Carlos Rodriguez, president and CEO of ADP, in a press release. “The Dealer Services business remains attractive in terms of long-term growth opportunities; however, we believe this transaction will benefit ADP’s shareholders by allowing each management team to better focus on its own business and strategic opportunities.”
Dealer Services is a leading global provider of retail and digital marketing solutions to automotive retailers and manufacturers. The global automotive market is the strongest it has been since 2007, and the volume of U.S. vehicle sales continues its recovery to pre-crisis levels.