By Dow Jones Business News,
August 19, 2014, 08:05:00 AM EDT
By Michael Calia
Automatic Data Processing Inc. said Tuesday that its dealer-services business will be called CDK Global Inc. after its
spinoff is completed.
The new company will be listed on the Nasdaq stock exchange under the "CDK" symbol, ADP said.
ADP said the name of the spinoff is derived from three of the businesses' core operations: Cobalt Digital Marketing,
the core Dealer Services and global technology business Kerridge Computer Co., a U.K. company acquired in 2005.
The company announced its plans for the spinoff in April, saying it believed "it is the most appropriate time" to
establish the business as a stand-alone, even as the auto industry has experienced robust sales in the midst of a tepid
ADP said at the time that it expected $700 million in proceeds from the spinoff, which the company would then use to
fund share buybacks. The company also said then that it expected the move to be completed in October and to result in
about $15 million in expenses for the fiscal fourth quarter.
Moody's Investors Service and Standard & Poor's Ratings Services both downgraded the company from their top-level
triple-A ratings in the wake of the announcement.
Write to Michael Calia at email@example.com
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