Automatic Data Proc

Automatic Data Proc is a fortune 500 stock listed company trading under the symbol ADP. The company has a proven track record of its stock performance.

For more than half a century ADP has been creating business solutions for clients of all types and sizes, in virtually every industry. ADP
is a leading provider of software, services and information that helps insurance carriers, collision repair shops and automotive recyclers automate core business processes, streamline workflows with industry partners, and manage performance.
Automatic Data Processing, Inc. has entered into a definitive agreement to sell its Claims Services business to Solera, Inc.  Solera, a consulting and outsourced services, and strategic technology solutions company focused on the claims process, was formed in partnership with GTCR Golder Rauner, LLC, a leading private equity firm.

Arthur F. Weinbach the Chairman and chief executive officer of ADP announced recently that  Solera, a consulting, outsourced services, and strategic technology solutions company focused on the claims process, was formed in partnership with GTCR Golder Rauner, LLC, a leading private equity firm. ADP expects the transaction to close shortly subject to normal regulatory review and customary closing conditions. Commenting on the transaction, Mr. Weinbach said that as part of their strategic planning process, they continuously review their lines of business for their strategic fit. They concluded that given the size of relative to other core businesses, and with the current favorable market conditions, it was timely to sell. They were pleased that Solera's experience, focus, and commitment to the industry will provide a positive experience for clients and associates.

ADP expects to report a one-time pretax gain of approximately 600 million dollars, or 450 million dollars after tax, upon closing. Excluding the one-time gain, the transaction will be dilutive approximately 0.01 - 0.02  dollar per share in fiscal 2006 and 0.07 dollar per share in fiscal 2007. Fiscal 2006 guidance, prior to the announcement of this transaction, was 10 percent revenue growth and 23 percent – 25 percent growth in earnings per share from continuing operations assuming stock compensation was expensed in both fiscal 2006 and 2005.

ADP, with 8.5 billion dollars in revenues and approximately 590,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions.