Automatic Data Processing to acquire Cobalt for $400 million
10 Jul 2010
Business outsourcing service provider Automatic Data Processing Inc (ADP) yesterday enterdd into a deal to acquire Seattle-based automotive digital marketing company Cobalt for about $400 million in cash.
ADP, with nearly $9 billion in revenues and about 570,000 clients, is one of the world's largest providers of business outsourcing solutions.
New Jersey-based ADP offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. A leading provider of integrated computing solutions, it caters to a wide ranger of industries like auto, truck, motorcycle, marine and recreational vehicle dealers worldwide.
Privately-held Cobalt is North America's leading provider of automotive marketing services. It provides website, search, digital and display advertising, and owner marketing solutions; OEM solutions, such as OEM programs and services, consulting, marketing agency, and DMS data management solutions.
With this acquisition, ADP said that it will be positioned to deliver an improved and enhanced model for automotive retailing based on a set of digital marketing solutions that will help transform how vehicles are marketed, sold and managed throughout the entire customer lifecycle.
Moreover, ADP's Digital Marketing Group will expand its suite to include BZ Results, Cobalt and Dealix.
''Acquisitions that complement our core businesses are a key part of ADP's five-point strategic growth programme and the primary focus of our capital allocation strategy. This transaction aligns with ADP Dealer Services' global layered applications strategy to increase ''share of wallet'' beyond its core dealer management system offering, said Gary Butler, ADP's president & chief executive officer.
