Friday, July 09, 2010
COBALT SALE TO ADP IS OFFICIAL
ADP to buy online marketer Cobalt for $400 million
July 09, 2010: 09:17 AM ET
ADP to spend $400 mln on online car marketer Cobalt
* Says purchase will boost car dealer services business
NEW YORK (Reuters) - Automatic Data Processing Inc said Friday it will buy the online car marketing company Cobalt for about $400 million, in an effort to gain more business from automotive dealers.
The transaction should close in about four to six weeks, and should slightly boost ADP's earnings in the first year, ADP said Friday.
Cobalt, which is privately held and based in Seattle, provides online marketing services to car dealers and manufacturers.
ADP, the world's largest payroll processing company, said the purchase will help its own automotive dealer services unit gain more business from its existing clients.
(Reporting by Maria Aspan, editing by Gerald E. McCormick)
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