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ADP to Acquire Employease, Capping Successful Strategic Partnership


Acquisition Will Expand ADP’s Presence in the Mid-Market to Address the Growing Demand for Hosted, On-Demand Payroll and HRMS

ROSELAND, New Jersey -- August 17, 2006 -- The Employer Services Division of Automatic Data Processing, Inc. (NYSE: ADP) today announced it has entered into an agreement to acquire Employease®, Inc., a leading provider of Web-based solutions and outsourcing options for HR and benefits professionals. The agreement follows a successful partnership between Employease and ADP® Major Accounts Services, part of ADP Employer Services. The acquisition is expected to further expand ADP’s presence within the mid-market to fulfill a growing demand for Software-as-a-Service (SaaS) solutions.

In October 2004, ADP Major Accounts Services and Employease entered into a strategic partnership to provide medium-sized businesses with an integrated suite of Web-based, hosted payroll, human resources and benefit administration service solutions. Since then, ADP has sold, implemented and serviced Employease Network solutions under the brand name ADP HR/Benefits Solution.

“This acquisition will build on our combined strengths and business momentum,” said Vince Coppola, President, ADP Major Accounts Services. “Combining Employease’s top-rated Web-based business solutions with ADP’s industry leading payroll, HR and benefit services enables our clients to address many of today’s most critical business issues, such as rising benefits costs, compliance and employee retention. We are excited to welcome Employease into the ADP family, and proactively meet the rapidly growing demand for hosted, on-demand services.”

Gartner named both ADP and Employease as 2006 Magic Quadrant leaders in the mid-market Human Resource Management Systems (HRMS) sector*. Furthermore, analysts noted that many U.S. mid-market companies are still buying new HRMS solutions, and predicted that by 2008, more than half of HRMS purchases in this sector would be for on-demand/software-as-a-service solutions.

“After our successful collaboration with ADP, we are confident this is the right move for our company, our clients and our associates,” said Phil Fauver, Chief Executive Officer, Employease. “ADP shares our commitment to providing quality service and easy-to-use solutions that help employers reduce the administrative burdens of HR and Benefits Administration. ADP’s global presence and payroll expertise will surely enrich and expand core product features while broadening our reach in the HR/Benefits space.”

The acquisition is subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, as amended. Following the completion of the acquisition, Employease will become part of ADP Major Accounts Services. Currently, Employease provides solutions to more than 1,500 clients, and has more than one million client records under management. Upon completion of the transaction, ADP Major Accounts Services will provide its World Class Service to all clients of Employease.

ADP HR/Benefits Solution

Delivered as a service over the Web, ADP HR/Benefits Solution makes world-class HRMS and employee self-service functionality available to companies of all sizes. In addition, ADP HR/Benefits Solution connects employers electronically with their service providers via 180 digital pipes.

With this highly flexible and scalable solution, employers do not have to install, configure, customize or maintain any hardware or software to begin redefining how they manage every business process that depends on employee information. ADP HR/Benefits Solution seamlessly links to ADP’s payroll products, PC/Payroll and Pay eXpert®.

For more information about ADP HR/Benefits Solution please visit:

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 and information-based business solutions. ADP® Employer Services (ES), a division of ADP, offers the widest range of HR, payroll, and benefit 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 1.800.225.5237 or visit the company’s Web site at

About Employease

Employease®, Inc. ( is helping companies redefine how they manage employee information to improve HR, benefits and payroll processes. Employease combines award-winning technology with a dynamic service center and a pioneering network to bring new levels of functionality, flexibility and connectivity to the market. By focusing on people, not paper, more than 1,500 organizations improve service to employees and managers and positively impact their bottom line using Employease.

Employease and the Employease logo are registered trademarks and Employease Network is a trademark of Employease, Inc. All other trademarks are property of their respective owners.

*Gartner Magic Quadrant Report for mid-market Human Resource Management Systems, May 2006

This release and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like “expects,” “assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could be” and other words of similar meaning, are forward-looking statements. These statements are based on management’s expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: ADP’s success in obtaining, retaining and selling additional services to clients; the pricing of products and services; changes in laws regulating payroll taxes, professional employer organizations, employee benefits and registered clearing agencies and broker-dealers; overall market and economic conditions, including interest rate and foreign currency trends; competitive conditions; stock market activity; auto sales and related industry changes; employment and wage levels; changes in technology; availability of skilled technical associates and the impact of new acquisitions and divestitures. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.


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