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Administration June 1, 2003
ADP Set to Buy Outsource Service Administrator
January 6, 2003 (PLANSPONSOR.com) - Payroll
processor Automatic Data Processing Inc. (ADP) has agreed to
acquire a California outsourced employee service
administrator.
Reported by Fred Schneyer
According to a Dow Jones report, ADP will pay about $500 million in cash for ProBusiness Services Inc, of Pleasanton, California. That represents $17 for each share of ProBusiness, which is a premium of 66% from ProBusiness’s January 3 closing price of $10.26 on the Nasdaq Stock Market.
ADP said it expects the deal, which requires shareholder and regulatory approval, to reduce earnings by about a penny a share in the first year, and then add to earnings in the second year.
Automatic Data Processing, or ADP, based in Roseland, N.J., sees the acquisition as a way to boost its payroll and tax filing services, and benefits administration, Dow Jones said. ProBusiness Services has annual revenue of about $170 million.