ADP Dealer Services, the DMS provider, is set to be spun off into an independent publicly-listed company by its giant US owner ADP.
ADP, which has group turnover of $11bn, wants to focus on growing its human capital management (HCM) solutions business so has approved a plan to separate the Dealer Services business 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 chief executive officer, ADP.
"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.
"ADP’s ongoing efforts and commitment will be focused on executing against our global HCM strategy.”
ADP Dealer Services is a global provider of retail and digital marketing solutions to automotive retailers and manufacturers, with global revenues of almost $2bn.
ADP expects to complete the separation in the early part of the fourth quarter of 2014.