ADP Signs Agreement to Acquire Intuit's Fully Outsourced Payroll Business.Acquisition Complements ADP's Long-term Growth Strategy; Expands Presence in the Small Business Space Delivering Fully Outsourced Payroll Solutions ROSELAND, N.J. & MOUNTAIN VIEW, Calif. -- ADP (1) (Automatic Data Processing) Synonymous with data processing (DP), electronic data processing (EDP) and information processing. (2) (Automatic Data Processing, Inc., Roseland, NJ, www.adp. [R] Employer Services, a division of Automatic Data Processing Same as data processing. , Inc. (NYSE NYSE See: New York Stock Exchange :ADP) and Intuit in·tu·it tr.v. in·tu·it·ed, in·tu·it·ing, in·tu·its Usage Problem To know intuitively. [Back-formation from intuition. Inc. (Nasdaq:INTU INTU Intuit, Inc. (stock abbreviation, AMEX) ) today announced they have entered into a definitive agreement whereby Intuit will transition its Premier customers and a portion of its Complete Payroll customers to ADP, representing up to 25,000 customers in total. These are business customers who prefer to completely outsource their payroll-related tasks to a third-party provider. ADP Employer Services is a leader in outsourced payroll, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and benefits administration solutions. Intuit is a leading provider of financial management software. This strategic acquisition enables ADP to continue to grow its customer base and leverage its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
"Transitioning this portion of our approximately 1 million payroll customer base to a best-in-class, fully-outsourced payroll provider allows us to focus our resources on offering easy-to-use and efficient services to customers who want to control their payroll and to those customers who want some assistance from accountants or Intuit," said Ginny Ginny is most often used as a short form of the name Virginia, but often also refers to Ginevra, Geneva, Genevieve and other Juniper-related names. In addition, when a food or beverage has a juniper taste, it is said to be ginny (the word gin is derived from the Dutch word for Lee, vice president and general manager of Intuit's Small Business Payroll business. "Intuit is committed to delivering world-class customer service and support." After the transaction is complete, Intuit will focus on its comprehensive portfolio of payroll services for those customers who prefer to control some or all payroll-related tasks. Together, ADP and Intuit are dedicated to ensuring a seamless customer experience for those customers who transition. The acquisition is subject to regulatory review and other customary closing conditions. About ADP Automatic Data Processing, Inc. (NYSE:ADP), with nearly $9 billion in revenues and more than 570,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and information-based business solutions. Employer Services (ES), a division of ADP, offers the widest range of HR, payroll, and benefits administration solutions from a single source, to meet the extensive business needs of employers worldwide. Built with more than 50 years of industry experience, ADP ES' cost-effective, easy-to-use solutions provide superior value to companies of all sizes. Approximately 540,000 companies rely on ADP ES for unparalleled service and compliance expertise, allowing them to focus on other core activities. For more information about ADP ES or to contact a local ADP sales office, reach us at 800-225-5237 or www.ADP.com. About Intuit Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. and services, including QuickBooks[R], Quicken A popular financial management program for PCs and Macs from Intuit, Inc., Mountain View, CA (www.intuit.com). It is used to write checks, organize investments and produce a variety of reports for personal finance and small business. [R] and TurboTax[R] software, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries[R] and Lacerte[R] are Intuit's leading tax preparation software suites for professional accountants. The company's financial institutions division, anchored by Digital Insight, provides on-demand banking services to help banks and credit unions serve businesses and consumers with innovative solutions. Founded in 1983, Intuit had annual revenue of $2.3 billion in its fiscal year 2006. The company has more than 8,100 employees with major offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada, the United Kingdom and other locations. More information can be found at www.intuit.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release includes forward-looking statements which are subject to safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created under the U.S. federal securities laws. All statements included in this press release that address activities, events or developments that Intuit or ADP expects, believes or anticipates will or may occur in the future are forward-looking statements, including, particularly, statements about the expected transition of customers, the potential benefits of the proposed transaction to Intuit or ADP, including the ability to provide new services to continuing customers, and the expected closing of the proposed transaction. All forward-looking statements are based on the opinions and estimates of Intuit's and ADP's respective management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include: the risk that the transaction is not consummated or is not consummated within the expected timeframe; the risk that the expected benefits of the proposed acquisition are not realized; the risk that disruption from the transaction may make it more difficult to maintain relationships with customers, employees, partners or suppliers. For information regarding risks related to Intuit, see discussion of risks and other factors in documents filed by Intuit with the Securities and Exchange Commission from time to time, including Intuit's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended July 31, 2006 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended Oct. 31, 2006. For information regarding risks related to ADP, see discussion of risks and other factors in documents filed by ADP with the Securities and Exchange Commission from time to time, including ADP's Form 10-K for the fiscal year ended June 30, 2006. Forward-looking statements represent the judgment of the management of Intuit and the management of ADP as of the date of this release, and each of Intuit and ADP disclaims any intent or obligation to update any forward-looking statements. |
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