CD&R Teams Up with GTCR to Take Global Payments Private in Deal Potentially Worth $40 Billion
nashnova research
Private-equity firm CD&R is partnering with GTCR to take payments processor Global Payments private at an enterprise value of roughly $40 billion — a deal that, if completed, would rank among the largest leveraged buyouts in history.
How big is this deal?
Global Payments has a market cap of about $23 billion and carries more than $17 billion in net debt, putting its enterprise value at roughly $40 billion.
Any bid must include a premium over the current share price. This means → the final price tag would far exceed Blackstone's $26 billion acquisition of Hilton in 2007, long the industry benchmark.
In plain terms = if it closes, this becomes one of the biggest private-equity buyouts ever attempted.
Why are CD&R and GTCR the buyers?
CD&R is leading the bid. GTCR is Global Payments' largest outside shareholder — the two are bidding together.
GTCR's stake traces back to a controversial deal: Global Payments bought Worldpay from GTCR for over $24 billion in cash and stock, handing GTCR more than $14 billion in cash and roughly $10 billion in shares.
This means → GTCR went from seller to major shareholder, and now joins the buy-side consortium — a full "sell → hold → buy" loop in one company.
Why has Global Payments' stock hit a near-decade low?
The trigger was the Worldpay acquisition itself. Many investors called it a strategic misstep — one that would stretch management thin, pile on leverage, and dilute shareholders.
The stock dropped about 20% on the announcement and kept falling through 2025.
Activist investor Elliott Investment Management then took a stake and struck a cooperation deal, placing two mutually agreed directors on the board. This reflects a deep erosion of market confidence in management.
What is happening across the payments industry?
The sector has been under sustained pressure as tech-native firms — Adyen, Stripe — steadily take share from traditional processors.
A telling parallel: Stripe teamed with PE firm Advent International to propose a $53 billion acquisition of PayPal, though early talks have stalled.
In plain terms = legacy payments companies are undervalued in public markets, and PE firms see a window to buy cheap and restructure in private.
Will this deal actually close?
Negotiations are ongoing. Sources stress that the outcome is uncertain and the deal may not happen.
CD&R declined to comment; Global Payments and GTCR did not respond.
This means → even if both sides are willing, engineering a $40 billion leveraged buyout in today's high-rate environment is itself a major financing hurdle.
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