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Despite Street fears, Automatic Data Processing Inc.'s pending $500 million takeout of ProBusiness Services Inc. should fly, predicted at least one industry source.
Jan Tombow, president of the American Society for Payroll Management (ASPM), said, "I don't see how [the merger] impacts the industry. It's just another acquisition for ADP." Tombow said she found it curious that the Department of Justice would scrutinize this deal so closely, given that the industry "has [numerous] payroll service providers" which offer similar services as ProBusiness does. A not-for-profit organization, Covina, Calif.- based ASPM hosts networking conferences for payroll professionals, and provides analysis on legislative issues affecting the industry.
On Jan. 6, $24 billion market cap ADP and ProBusiness signed a $17-
a-share cash definitive (See M&AR 1/13/03). And on Feb. 13, the DOJ requested more information about the deal. Roseland, N.J.-based ADP provides payroll-processing services. An...