UPDATE 2-ADP to buy online marketer Cobalt for $400 million

* ADP to spend $400 mln on online car marketer Cobalt

* Says purchase will boost car dealer services business

* ADP shares up 0.2 percent
(Adds background on ADP, online marketing, ADP jobs
announcement, byline, share price)

By Maria Aspan

NEW YORK, July 9 (BestGrowthStock) – Automatic Data Processing Inc
(ADP.O: ) is buying online car marketing company Cobalt for about
$400 million to gain more business from automotive dealers, the
world’s largest payroll processing company said on Friday.

The transaction should close in four to six weeks and
slightly boost earnings in the first year, ADP said.

Cobalt, which is privately held and based in Seattle,
provides online marketing services to car dealers and
manufacturers.

ADP said the purchase would help its own automotive dealer
services unit gain more business from its existing clients.

Despite persistently high unemployment, ADP’s business has
has started to recover along with the economy. The company said
in April that it was seeing more demand from small and
mid-sized businesses.

ADP expects those clients to continue spending more money
on online advertising than on other kinds of marketing, Chief
Executive Gary C. Butler said in Friday’s announcement.

Also on Friday, ADP said it would create “hundreds of jobs”
and open a new office in the Pittsburgh area to support its
employer service unit. More details will follow on Tuesday,
when the new office opens.

ADP shares were up 0.2 percent at $40.46 in morning
trading.
(Reporting by Maria Aspan, editing by Gerald E. McCormick and
Lisa Von Ahn)

UPDATE 2-ADP to buy online marketer Cobalt for $400 million