PE firm CD&R targets buyout of $40bn Global Payments – FT

Global Payments, the payments processor with an enterprise value of around $40 billion, is an acquisition target for private equity firm CD&R, according to the Financial Times.

CD&R is working with publicly-listed Global Payments’ biggest shareholder, GTCR, on a bid to take the firm private, says the FT, citing people familiar with the matter. Talks are ongoing and a deal may not materialise.

Shares in Global Payments rose by more than 11% in afternoon trading on the report.

“We aren’t surprised by the potential bid news,” Mizuho analyst Dan Dolev wrote in a note on Friday, according to Seeking Alpha.

CD&R’s interest comes a year after Global Payments agreed a $22.7 billion deal to acquire another payments giant, Worldpay, from GTRC and FIS while offloading its Issuer Solutions business to FIS for $13.5 billion.

At the time, the deal caused some consternation among investors who felt it was not in line with the company’s previous promises to focus on divestments and returning cash to shareholders.

Activist hedge fund Elliott Investment Management added to the pressure by building a stake in the firm.

Source: https://www.finextra.com/newsarticle/48681/pe-firm-cdr-targets-buyout-of-40bn-global-payments—ft