Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 08.2014
Revision date: 6-Apr-2016
Length: 16 pages
Data source: Field research
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https://casecent.re/p/8106
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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.
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.