Key insights
- Global Payments shares dropped 9% and were halted after private equity firms CD&R and GTCR ended discussions regarding a potential acquisition. The buyout consortium reportedly walked away due to the complexities of arranging a take-private deal of this scale, especially given Global Payments' market capitalization and current financing conditions. This development removes a potential catalyst for the company's stock.
Investing.com -- Global Payments shares fell 9% on Thursday and were halted under a volatility breaker after private equity firms Clayton, Dubilier & Rice (CD&R) and GTCR abandoned discussions about a potential acquisition of the payments processor, Reuters reported, citing two people familiar with the matter.
The buyout consortium walked away from talks after exploring a potential transaction over the past several weeks. Discussions remained at an early stage and failed to advance amid the complexities of arranging a take-private deal of this scale, according to the report.
The development removes the prospect of what could have been one of the largest leveraged buyouts in the payments sector, while eliminating a potential catalyst for Global Payments shares.
The company had a market capitalization of approximately $26.4 billion, making financing a transaction potentially worth tens of billions of dollars particularly challenging in an environment of elevated borrowing costs and tighter financing conditions for large leveraged buyouts.
The talks could potentially resume at a later date, or another buyer could emerge, the people said. CD&R declined to comment, while Global Payments and GTCR did not immediately respond to requests for comment.
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