ADP Launches Venture Capital Arm, Focuses on Innovation
Automatic Data Processing, Inc. ADP shares have had an impressive run over the past three months. The stock has rallied 10% compared with the 6.7% rise of the industry it belongs to and the 4.5% decline of the Zacks S&P 500 composite.
The company recently announced the launch of its corporate venture capital arm and innovation lab, ADP Ventures.
Automatic Data Processing, Inc. Price
Automatic Data Processing, Inc. price | Automatic Data Processing, Inc. Quote
The Job
ADP Ventures aims to invest in and partner with technology startups in the human capital management (HCM) industry and beyond, which are capable of using and advancing ADP’s innovation strategies. This, in turn, will help ADP improve and strengthen its core business, as well as develop services that cater to new segments and geographies.
ADP Ventures has invested in SemperVirens Venture Capital, an early-stage venture capital fund that invests in technology transforming work, health and financial wellness.
The Goal
ADP Ventures seems to be a part of ADP’s broader objective of business development and client acquisition through increasing the quality of services and clients’ overall experience throughout their HCM journey.
Innovation and technology improvement on a consistent basis should further strengthen ADP’s strong business model characterized by high recurring revenues, good margins, robust client retention and low capital expenditure.
Sreeni Kutam, president of global product and innovation at ADP said, "ADP Ventures is investing in the total human experience, in technology that empowers people at work and beyond work, whether it's collaboration, health and wellbeing, talent acquisition, financial wellness or HCM analytics."
Zacks Rank & Other Stocks to Consider
ADP currently carries a Zacks Rank #2 (Buy).
The following top-ranked stocks from the Business Services sector are also worth consideration:
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