U.S. Markets closed

ADP to spin off auto business

Automatic Data Processing (ADP) will spin its auto Dealer Services business into a separate, publicly traded company via a tax-free transaction. The unit provides retail and marketing services to car dealers and makers. ADP expects to complete the separation in Q4. It plans to use the estimated $700 mil in proceeds to buy back shares. ADP rose early but closed down 0.9% to 75.22.