Global Payments shares jumped 12% on Friday after the Financial Times reported that CD&R is exploring a buyout of the payments processor. The reported enterprise value is $40 billion, and the discussions may not result in a deal.
Global Payments shares jumped 12% on Friday after the Financial Times reported that private equity firm Clayton, Dubilier & Rice is exploring a buyout of the company. The report cited people familiar with the matter.
CD&R teams up with GTCR on a possible bid
CD&R is working with GTCR, Global Payments' largest outside shareholder, on a potential bid, according to the FT. The discussions remain ongoing and may not result in a transaction.
The reported $40 billion enterprise valuation would make the potential deal one of the largest leveraged buyouts on record. Global Payments' equity market value was approximately $23 billion on Friday afternoon, while its net debt exceeds $17 billion.
No purchase price or financing details have emerged. The FT reported that any transaction would likely include a premium, but the size of that premium is unknown.
Shares lost ground after the Worldpay agreement
The stock had lost significant ground after Global Payments agreed in 2025 to acquire Worldpay from GTCR for more than $24 billion. The deal used cash and stock, and investors raised concerns about the company's increased debt burden, dilution and strategic direction.
GTCR received more than $14 billion in cash and approximately $10 billion in Global Payments shares, which made it the largest outside shareholder. Elliott Investment Management then secured two mutually agreed-upon board appointments through a cooperation agreement after taking a stake.
CD&R declined to comment, while Global Payments and GTCR did not immediately respond to requests for comment, according to the FT. Reuters could not independently verify the report.
Sources: All News, All News (Reuters report)
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