Jeanne Larson

ADP signs its largest acquisition deal in history, to purchase GSI in August 1995. If the divergence of cultures in both companies isn’t enough -- ADP management being used to tight 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.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region Global

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This last document in the ADP-GSI series describes the outcome of the acquisition through interviews with ADP and former GSI managers. ADP management is very pleased with the results. ADP Europe management, particularly Philippe Gluntz, has played a key role as leader and buffer between the ADP and GSI culture and operations.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region Global

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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.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region North America

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ADP signs its largest acquisition deal in history, to purchase GSI in August 1995. If the divergence of cultures in both companies isn’t enough -- ADP management being used to tight 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.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region Global

View case
GSI is a computer services company, the leader in payroll outsourcing in France. The company founder sees the value in selling computer services to create a recurring revenue stream. His years in the French public administration prompt him to create a decentralized and non-bureaucratic company, taking to an extreme the values of empowerment, trust and respect for the individual.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region Europe

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The follow-on to the GSI A case presents the alternatives available to GSI in the summer of 1995. Former senior manager Gluntz has returned in February after a 10 year hiatus and created a plan to turnaround the company. By summer, it’s obvious that the option of selling GSI to an appropriate acquirer must be evaluated, given the mounting pressure of financial investors.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region Europe

View case
GSI is a computer services company, the leader in payroll outsourcing in France. The company founder sees the value in selling computer services to create a recurring revenue stream. His years in the French public administration prompt him to create a decentralized and non-bureaucratic company, taking to an extreme the values of empowerment, trust and respect for the individual.

Published 01 Jul 2003

Reference 5118

Topic Strategy

Industry Information Services

Region Europe

View case