Clayton Dubilier & Rice has teamed up with GTCR to pursue a take-private of Global Payments, which has an enterprise value of approximately $40bn, according to a report by the Financial Times.
Discussions remain ongoing and may not lead to a transaction. Global Payments had a market capitalisation of approximately $23bn on Friday afternoon and more than $17bn in net debt, with any acquisition likely to require a premium.
GTCR became the company’s largest outside shareholder after accepting cash and shares in Global Payments’ acquisition of Worldpay for more than $24bn. The transaction drew criticism from investors over additional leverage, dilution and its strategic rationale.
A buyout would rank among the largest leveraged acquisitions on record. Global Payments’ shares rose more than 9% following the report, having previously fallen towards their lowest levels in almost a decade.
