US private equity firm CD&R is exploring a possible deal to take payments processor Global Payments private, Reuters reported, citing a source familiar with the matter.
The discussions are at an “early stage” and may not result in a transaction, the source said.
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CD&R has partnered with GTCR, Global Payments’ largest shareholder, on a potential joint offer, according to a recent Financial Times report.
A deal could rank among the largest leveraged buyouts in history.
CD&R and GTCR declined to comment. Global Payments did not immediately respond to a Reuters request for comment.
The potential bid follows Global Payments’ agreement in 2025 to buy Worldpay from FIS and GTCR for more than $24bn.
The announcement triggered a fall in Global Payments’ shares, with investors questioning both the price and the additional debt required for the acquisition.
Later that year, activist hedge fund Elliott Investment Management built a significant stake in the company, increasing pressure on management to explain the rationale for the Worldpay transaction.
The investor response reflected concerns that the purchase ran counter to previous management commitments to pursue divestments and return cash to shareholders.
Global Payments’ stock has fallen more than 60% from its 2021 record high. The company’s market value stands at about $23bn, according to LSEG data.
Traditional payments companies face mounting competition from fintech groups, technology companies, and newer digital payment providers. The pressure has reduced valuations for some established operators and attracted interest from private equity firms and strategic buyers.
Earlier this year, Stripe and Advent International offered to acquire PayPal in a deal valued at about $53bn, Reuters reported.
The talks reportedly stalled over the discount, after years of pressure on PayPal’s share price.
