CD&R pursuit of Global Payments buyout

Description Clayton, Dubilier & Rice and GTCR are discussing a leveraged buyout of Global Payments that could value the processor above $40 billion. Overview CD&R has entered talks to acquire payment processor Global Payments in a potential leveraged buyout. The firm is partnering with GTCR, Global Payments’ largest shareholder, according to the report. No agreement has been reached, but the possible transaction would target a company with about $23 billion of market value and more than $17 billion of net debt. Why it matters The talks matter for Global Payments shareholders, payments-industry competitors, private-equity lenders and leveraged-buyout markets because a deal would be one of the largest buyouts of its kind. Key details • Potential valuation is reported at more than $40 billion. • Global Payments shares rose about 10% on the report. • The company’s market value was about $23 billion. • Global Payments has more than $17 billion in net debt. • CD&R is reportedly partnering with GTCR.