Oct 30 (Reuters) - Private equity firm CD&R is looking to acquire Global Payments, which has an enterprise value of roughly $40 billion, the Financial Times reported on Friday, citing people familiar with the matter.
CD&R has teamed up with private equity group GTCR, Global Payments' biggest shareholder, on a joint bid for the payment processor that would rank among the largest leveraged buyouts in history, the report added.
Shares of the company were last up 11% in afternoon trading. Talks are ongoing
and a deal may not materialize, the FT report said.
CD&R declined comment, while Global Payments and GTCR did not immediately respond to Reuters requests for comment. Reuters could not independently verify the report.
In 2025, Global Payments agreed to buy rival Worldpay from FIS and GTCR in a deal valued at more than $24 billion. The acquisition sent its shares tumbling as investors balked at the price tag and the additional debt burden.
Later that year, activist hedge fund Elliott Investment Management built a sizable stake in Global Payments, adding pressure on the company to justify the deal.
The backlash reflected investor frustration with a takeover that appeared to run counter to the management's earlier promises to focus on divestments and returning cash to shareholders.
The Global Payments stock has fallen more than 60% from its record high in 2021, based on Thursday's closing price. The company has a market value of roughly $23 billion, according to LSEG data.
More broadly, the payments industry has become increasingly competitive, with traditional players facing pressure from upstart fintech firms, technology companies and newer digital payment providers.
The intensifying competition has weighed on valuations of some established players, making them potential acquisition targets for private equity firms and strategic buyers looking to capitalize on depressed share prices, established customer bases and the growing importance of digital payments.
Earlier this year, Stripe and private equity firm Advent International offered to acquire payments giant PayPal in a deal valued at roughly $53 billion, Reuters reported.
The proposed price tag, a fraction of PayPal's peak market capitalization, reflected years of pressure on its stock, driven in part by intensifying competition in the payments industry. The talks have since reportedly stalled over the discount.
(Reporting by Manya Saini in Bengaluru; Editing by Shailesh Kuber)
