Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 303-139-1
Published by: INSEAD
Originally published in: 2003
Version: 08.2014
Revision date: 06-Apr-2016
Length: 16 pages
Data source: Field research

Abstract

This case is part of the ADP-GSI case series on mergers and acquisitions. Automatic Data Processing (ADP) is an American success story. The founder, with modest beginnings and a good idea, turns a company that does the payroll for a few companies in New Jersey, to a successful company that can boast 136 consecutive quarters of revenue and income growth since going public in 1961. The company is built on a solid economic model of providing outsourcing of payroll and other key applications to earn a recurring revenue stream. In the summer of 1995, management of the US-centric company with a few lacklustre overseas experiences, must decide whether it should acquire French-based GSI (Generale de Service Informatique). The case asks the reader to take the position of Gary Butler, President of ADP Employer Services, weighing the risks of a large overseas purchase with the rewards of growth that a new market can promise.
Location:
Industry:
Size:
USD2.9 billion revenues
Other setting(s):
1995

About

Abstract

This case is part of the ADP-GSI case series on mergers and acquisitions. Automatic Data Processing (ADP) is an American success story. The founder, with modest beginnings and a good idea, turns a company that does the payroll for a few companies in New Jersey, to a successful company that can boast 136 consecutive quarters of revenue and income growth since going public in 1961. The company is built on a solid economic model of providing outsourcing of payroll and other key applications to earn a recurring revenue stream. In the summer of 1995, management of the US-centric company with a few lacklustre overseas experiences, must decide whether it should acquire French-based GSI (Generale de Service Informatique). The case asks the reader to take the position of Gary Butler, President of ADP Employer Services, weighing the risks of a large overseas purchase with the rewards of growth that a new market can promise.

Settings

Location:
Industry:
Size:
USD2.9 billion revenues
Other setting(s):
1995

Related