HOFFMAN ESTATES, Ill. (AP) -- Once the division of Automatic Data Processing's dealer-services business becomes an independent company it will get a new name, CDK Global.
Automatic Data Processing Inc., better known as ADP, unveiled the new name in a statement on Tuesday. Once the spin-off is finished, the new publicly traded company will be listed on the NASDAQ market under the ticker "CDK," according to the statement.
ADP unveiled its plans to break off the business, which provides services to car dealerships and manufacturers, in April. CDK's new logo resembles a traffic signal with the green light illuminated at the bottom. The name stems from the company's three business lines: the C is for Cobalt Digital Marketing; the D for dealer services; and K for Kerridge Computer, a company based in the U.K. that ADP bought in 2005.
ADP previously said that the spin-off should be finished in the last three months of this year. The move could raise at least $700 million for ADP. The company said it plans to use that money to buy its own stock.
- Automatic Data Processing