Summary
Automatic Data Processing, Inc. (ADP) has announced a significant strategic move by agreeing to sell its Claims Services business (CSG) to Solera, Inc. This divestiture, effective February 8, 2006, signals a potential shift in ADP's operational focus. The company has reclassified CSG as a discontinued operation, and prior period financial information will be restated accordingly. Investors should monitor how this sale impacts ADP's overall revenue streams and its strategic direction moving forward.
Key Highlights
- 1Agreement to sell Claims Services business (CSG) to Solera, Inc.
- 2Sale officially entered into on February 8, 2006.
- 3CSG will be treated as a discontinued operation.
- 4Prior financial periods will be updated to reflect CSG as a discontinued operation.
- 5Press release announcing the sale is attached as Exhibit 99.1.
- 6Karen E. Dykstra, Chief Financial Officer, signed the report.
Frequently Asked Questions
The main event is Automatic Data Processing, Inc. (ADP) entering into an agreement to sell its Claims Services business (CSG) to Solera, Inc.
CSG will be reclassified as a discontinued operation. This means that financial information for prior periods will be updated and presented to reflect this change, separating the results of CSG from ADP's ongoing operations.
The agreement to sell CSG was entered into on February 8, 2006.
Exhibit 99.1 is the press release issued by ADP on February 9, 2006, which announces the sale of the Claims Services business and provides related financial information.