CD&R and GTCR eye buyout of Global Payments in potential mega-LBO

Private equity firm Clayton, Dubilier & Rice is pursuing a potential buyout of payments processor Global Payments, according to a source familiar with the matter who spoke to Reuters.

The discussions remain in early stages and may not lead to a completed transaction, the source cautioned.

CD&R has teamed up with GTCR, which holds the largest stake in Global Payments, to explore a joint acquisition offer, the Financial Times reported recently.

If completed, the transaction would rank among the largest leveraged buyouts in history. Neither CD&R nor GTCR provided comment on the reports. Global Payments did not immediately respond to requests for comment.

The buyout exploration comes after Global Payments agreed in 2025 to acquire Worldpay from FIS and GTCR for more than $24 billion.

The deal announcement sent Global Payments' stock tumbling as investors raised doubts about the purchase price and the significant debt burden required to finance the acquisition.

Activist investor Elliott Investment Management later accumulated a substantial position in the company, intensifying scrutiny on management's decision to pursue the Worldpay transaction.

Shareholders expressed concern that the acquisition contradicted prior management pledges to divest non-core assets and return capital to investors.

Global Payments shares have dropped more than 60% from their 2021 peak. The company now carries a market capitalisation of approximately $23 billion, based on LSEG data.

Established payment processors face intensifying competition from fintech startups, technology giants, and emerging digital payment platforms.

The competitive pressure has compressed valuations across the sector, drawing attention from private equity buyers and strategic acquirers seeking opportunities in the fragmented market.

Earlier this year, Stripe and Advent International made an offer to buy PayPal in a deal valued at roughly $53 billion, Reuters reported.

Those discussions subsequently stalled over pricing disagreements, following years of sustained pressure on PayPal's share price.

The parallel deal attempts underscore a wave of consolidation interest in the payments industry as traditional processors navigate mounting competitive threats and valuation challenges.