Global Payments Buyout Talks Put Potential LBO in Focus

According to CNBC, Global Payments is in talks to go private, though the discussions may not result in a transaction; details on the deal’s size and financing have not emerged. Shares surged 13% Friday after the Financial Times reported that Clayton, Dubilier & Rice was partnering with GTCR, Global Payments’ largest shareholder, to evaluate a deal. The stock has risen about 45% since March. GTCR owns approximately 16% of Global Payments, and rolling its stake into a new company could reduce financing needs. Global Payments has nearly $22 billion in net debt, about 3.7 times estimated 2027 EBITDA. William Blair analyst Andrew Jeffrey put the odds of a completed deal comfortably below 50%. The company is due to report third-quarter results Thursday.