Shares of Global Payments (NYSE:GPN) surged over 6% in premarket trading on Wednesday following media reports that activist investor Elliott Investment Management has acquired a significant stake in the fintech company.
According to sources familiar with the situation, Elliott’s holding in the Atlanta-based payment processor is described as “sizable.” However, Reuters noted that the exact stake size and Elliott’s intentions for the company remain unclear.
The Financial Times was the first to break the story.
This development comes less than three months after Global Payments completed its $24.3 billion purchase of Worldpay from FIS and private equity firm GTCR. As part of the deal, Global Payments’ card processing and account services business was sold to FIS, with the transaction expected to finalize in the first half of 2026.
The deal drew skepticism from analysts, as Global Payments’ leadership had previously indicated plans to divest assets and return capital to shareholders. Notably, the three-way arrangement does not require shareholder approval, so Elliott cannot block it.
Global Payments’ share price has fallen more than 30% year-to-date, though it has gained slightly more than 1% over the past month.
Jefferies analysts commented that while the stock appears “objectively cheap,” trading below six times forward earnings estimates, they “do not see an obvious activist playbook” guiding Elliott’s investment.
They further noted that Elliott’s previous involvement with payments firm PayPal (NASDAQ:PYPL) centered on cost reductions and better capital allocation, but given Global Payments’ strong balance sheet and healthy margins, those “are not potential levers” available to Elliott in this case.
“We struggle to see what could be done through the traditional activist lens,” the analysts said.
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