Automatic Data Processing Inc. continues to solidify its position as one of the largest providers of human resources software and services in the world with its proposed acquisition this week of the RightThing, a leading recruitment process outsourcing provider.
It's the second acquisition in two months for the ADP, which has been snapping up companies in recent years in an effort to establish itself as more than a provider of payroll services. The company is best known for processing payroll checks.
"We are looking to continue to establish our credibility in the human capital management space," said Terrence McCrossan, division vice president of strategy for ADP. "We think that adding the RPO capability of the RightThing will set us up to be a key player in providing a broad range of solutions from a single provider which we see as highly desirable to our clients."
Details of the deal were not disclosed.
The Right Thing is privately owned company based in Findlay, Ohio, and parent company of AIRS, a recruitment Internet training provider.
In September, ADP bought Asparity Decision Solutions, a privately held company that develops decision support software for employee benefits management, and in March, ADP entered the health care information technology market with the purchase of AdvancedMD, which provides practice management and electronic medical record products.
"ADP has a proud heritage in the payroll arena but in last five to 10 years we've tried to develop a broader portfolio," McCrossan said.
On Oct. 3, the company unveiled a new product dubbed ADP Vantage HCM. ADP officials portray the launch as a "big bet" designed to move the company from its traditional back-office role to center stage in the hotly contested human capital management market.
In addition to payroll services, ADP provides human resource outsourcing, tax and compliance services, benefits administration and integrated computing solutions for car dealers.
"With the addition of the RightThing's industry-leading RPO services, technology and management team, ADP will not only expand into a strategic adjacent market, but will also immediately become a principal player in the RPO industry," said Regina Lee, president of ADP's National Account Services, Major Account Services, GlobalView and ADP Canada business units. "Expansion into complementary markets—such as RPO—will be of great benefit to our clients and is a critical element in our plan to grow our business.
"This acquisition underscores ADP's commitment to help our clients drive business success by helping them better manage talent, make quality hires and control costs associated with the recruitment process."