Note 2. Acquisitions

Effective November 1, 1995, ADP acquired control of GSI-Participations, a computer services company based in Paris, France for approximately $460 million in cash plus transaction costs and other related liabilities assumed. The GSI transaction resulted in approximately $596 million of goodwill and other intangibles (primarily customer lists and software), which are being amortized over periods ranging from 5 to 40 years.

During fiscal 1997, 1996 and 1995, the Company purchased several other businesses for approximately $122 million (including $7 million in common stock), $91 million (including $20 million in common stock), and $123 million (including $16 million in common stock), respectively, net of cash acquired. The results of these acquired businesses were not material to the Company's consolidated financial statements, and are included from the date of acquisition.

The Company also acquired several businesses in fiscal 1997, 1996 and 1995 in pooling of interest transactions in exchange for 2,827,000, 969,000 and 2,362,000 shares of common stock, respectively. The Company's consolidated financial statements were not restated because in the aggregate these transactions were not material.