Private-equity firm Clayton, Dubilier & Rice is exploring a takeover of Global Payments Inc. alongside GTCR, the card processor’s biggest shareholder, in what would rank among the largest leveraged buyouts ever attempted.
The discussions, first reported late last week and confirmed by a person familiar with the matter, are at an early stage and could end without a deal. Global Payments shares jumped about 11% on Oct. 30 after the talks surfaced. CD&R and GTCR declined to comment, and Global Payments didn’t respond to requests for comment.
A stock that never recovered
The Atlanta-based company has an enterprise value of roughly $40 billion, made up of a market capitalization of about $23 billion plus net debt. Its shares sit near their lowest level in about a decade and have fallen more than 60% from their 2021 peak. Much of the damage dates to 2025, when Global Payments agreed to buy Worldpay from FIS and GTCR in a cash-and-stock deal valued at more than $24 billion while selling its issuer-processing business to FIS. Investors balked at the price and the extra leverage, and activist Elliott Investment Management later built a sizable stake.
That transaction is also why GTCR is at the table. The Chicago buyout firm took Global Payments shares as part of its Worldpay proceeds and now owns about 15% of the company, according to analysts at William Blair, who called a joint bid credible on that basis.
The debt problem
Financing is the obvious hurdle. Estimates of Global Payments’ net debt range from about $17 billion to nearly $22 billion, and any buyer would have to layer acquisition borrowing on top of that or refinance it in a market where rates have been climbing. William Blair flagged the debt as a potential impediment and said a completed deal could herald a fresh wave of take-privates that leaves few traditional payments companies on public markets.
Pressure on legacy processors from newer fintech rivals has pushed several of them into play. A buyout of Global Payments would follow a busy autumn for large take-privates, including Thrive Holdings’ $15.3 billion deal for ADT.
