Global Payments Inc. (GPN) stock rose Monday, extending Friday's rally after reports that private equity firms Clayton, Dubilier & Rice (CD&R) and GTCR are exploring a potential buyout of the payments processing giant.
The potential transaction could value Global Payments at an enterprise value of about $40 billion, making it one of the largest leveraged buyouts in history, according to the Financial Times.
However, discussions remain at an early stage, and there is no guarantee a deal will materialize, Reuters reported, citing people familiar with the matter.
Global Payments shares surged more than 12% Friday following the reports.
Potential Buyout Could Reshape Payments Industry
The takeover interest comes as Global Payments seeks to regain investor confidence after its shares lost more than 60% of their value from a record high in 2021.
According to market data, the company had a market capitalization of approximately $25.6 billion at Friday's close.
As of June 30, Global Payments held $5.4 billion in cash and cash equivalents.
William Blair analysts said a potential transaction appeared credible because GTCR already owns roughly 15% of Global Payments shares at a cost of $97 per share.
However, the analysts cautioned that the company's nearly $22 billion in net debt could complicate financing, particularly in a rising interest rate environment, Reuters reported.
William Blair also suggested that a successful buyout could accelerate consolidation across the payments industry, potentially leaving fewer traditional financial technology companies publicly traded.
The reported interest highlights private equity's growing appetite for established payment processors as competition from digital payment platforms and newer fintech companies pressures valuations.
Worldpay Deal and Activist Pressure
The potential buyout follows a major restructuring of Global Payments' business earlier this year.
In January, the company completed its $24.25 billion acquisition of Worldpay from Fidelity National Information Services Inc. (FIS) and GTCR.
Global Payments also completed the $13.5 billion sale of its Issuer Solutions business to FIS. Both transactions were initially announced in April 2025.
The deals sharpened Global Payments' focus on merchant payment processing while expanding its international reach and scale.
Meanwhile, activist investor Elliott Investment Management acquired a significant stake in Global Payments in 2025, adding pressure on management to demonstrate the financial and strategic benefits of the Worldpay acquisition.
The latest takeover speculation comes as investors assess whether the expanded business can deliver stronger growth, improve profitability and reduce debt.
Earnings and Analyst Outlook
Global Payments is scheduled to report quarterly earnings Thursday, Nov. 5.
Analysts expect earnings of $3.58 per share, compared with $3.26 a year earlier. Revenue is projected to increase to $3.18 billion from $2.43 billion.
The stock trades at a price-to-earnings ratio of 45.9 and carries a consensus Buy rating, with an average analyst price forecast of $101.32.
Recent analyst actions reflect differing views on the company's outlook.
On Oct. 23, Truist Securities lowered its price forecast to $86 while maintaining a Hold rating.
KeyBanc upgraded Global Payments to Overweight on Oct. 19 and maintained its $105 price forecast.
Meanwhile, Bank of America Securities reiterated its Buy rating on Oct. 15, maintaining a $114 price forecast.
GPN Price Action
Global Payments shares rose 2.92% to $99.68 at the time of publication Monday. The stock reached a new 52-week high, according to market data.
