Private equity firm CD&R is working with GTCR, Global Payments' largest shareholder, on a bid that would take the payment processor private, according to the Financial Times as cited by Finextra. Global Payments has an enterprise value of around $40 billion. Talks are ongoing and may not lead to a deal. The interest comes a year after the company agreed to buy Worldpay and sell its Issuer Solutions business to FIS.

What it means: The possible deal shows that large card acquirers remain a target for private equity, despite fierce competition from newer platforms. Global Payments is still integrating Worldpay, one of the largest acquirers worldwide, and the market did not warm to that strategy. Taking the company private would let new owners restructure away from quarterly pressure, which often means cost cuts, disposals and pricing changes. For merchants working with companies in the group, including many sellers with international business and large online shops, a change of ownership does not affect services directly but may bring new terms at contract renewal. Greek businesses that rely on a single card acquirer have reason to look at alternatives and at change-of-control clauses in their contracts. More broadly, consolidation in the sector continues, with a few large groups controlling an ever bigger share of card payments in Europe and the US, which weakens merchants' bargaining position.

Read the original on Finextra

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