Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 08.2014
Revision date: 6-Apr-2016
Length: 27 pages
Data source: Field research
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Abstract
This case is part of the ADP-GSI case series on mergers and acquisitions. This is an expanded version of the case 'ADP-GSI: The Integration Challenge'. Automatic Data Processing (ADP) signs its largest acquisition deal in history, to purchase GSI (Generale de Service Informatique) in August 1995. If the divergence of cultures in both companies isn't enough - ADP management being used to tighten controls and double-digit growth and GSI management groomed to run their own show in spite of recent poor financial results - there are tremendous differences in operations across functional areas to resolve. Both companies have developed and positioned their unique product offerings to serve different market segments in distinct geographies. Consequently, the sales and customer service organisations are also very different, with scopes and profiles that correspond to their own markets. Financial reporting practices are also divergent, for the most part due to country legislation. Human resource practices are polar opposites. The reader is asked to take the position of Philippe Gluntz, the new President of ADP Europe, straddling the ocean to manage the post-acquisition process.
Location:
Industry:
Size:
ADP USD2.9 billion, GSI USD500 million
Other setting(s):
1995
About
Abstract
This case is part of the ADP-GSI case series on mergers and acquisitions. This is an expanded version of the case 'ADP-GSI: The Integration Challenge'. Automatic Data Processing (ADP) signs its largest acquisition deal in history, to purchase GSI (Generale de Service Informatique) in August 1995. If the divergence of cultures in both companies isn't enough - ADP management being used to tighten controls and double-digit growth and GSI management groomed to run their own show in spite of recent poor financial results - there are tremendous differences in operations across functional areas to resolve. Both companies have developed and positioned their unique product offerings to serve different market segments in distinct geographies. Consequently, the sales and customer service organisations are also very different, with scopes and profiles that correspond to their own markets. Financial reporting practices are also divergent, for the most part due to country legislation. Human resource practices are polar opposites. The reader is asked to take the position of Philippe Gluntz, the new President of ADP Europe, straddling the ocean to manage the post-acquisition process.
Settings
Location:
Industry:
Size:
ADP USD2.9 billion, GSI USD500 million
Other setting(s):
1995