Global Payments surges on report of CD&R takeover interest
GPN•Global Payments shares rose 12% to $96.19 after the Financial Times reported that private equity firm CD&R is looking to acquire the payments processor, which has an enterprise value of roughly $40 billion. The report said CD&R teamed up with Global Payments' biggest shareholder, GTCR, on a joint bid.
1. Reported joint bid
CD&R is looking to acquire Global Payments, the Financial Times reportedly said, citing people familiar with the matter. The report said CD&R teamed up with GTCR, Global Payments' biggest shareholder, on a joint bid.
2. Debt and deal hurdles
William Blair analysts said the idea was credible given GTCR owns roughly 15% of Global Payments shares at $97, but the company's nearly $22 billion of net debt could be an impediment, especially in a rising rate environment. The analysts added that a deal would likely signal another M&A wave that could leave the market devoid of public traditional fintechs. CD&R and GTCR declined to comment, while Global Payments did not immediately respond to a request for comment.
