Two of Canada’s financial institutions, Royal Bank of Canada (RBC) and Bank of Montreal (BMO), have reached an agreement to sell their jointly owned payments processing company, Moneris Solutions Corporation, to the technology-focused private equity firm Francisco Partners.
The all-cash deal is valued at approximately C$2 billion (about US$1.4 billion), with each bank receiving an equal 50 percent share of the proceeds.Moneris, established 25 years ago as a joint venture between the two Toronto-based banks, has grown into one of Canada’s foremost providers of commerce and payment solutions.
The company supports more than 325,000 points of commerce nationwide and processes roughly one in every three business transactions in the country.
It offers a range of services including point-of-sale systems, e-commerce and omnichannel payment options, integrated business tools, and data insights tailored to the Canadian market.
Under the terms of the agreement, Francisco Partners will acquire full ownership of Moneris.
Concurrent with the closing, both RBC and BMO will enter into exclusive, long-term customer referral arrangements with the company.
These agreements are designed to maintain continuity for business clients, ensuring they continue to access Moneris’ payment services and support.
RBC anticipates recording an after-tax gain of approximately C$475 million (C$560 million pre-tax) upon closing, treated as an adjusting item.
The transaction is expected to have a marginally positive effect on the bank’s common equity Tier 1 capital ratio and is not projected to significantly affect future run-rate earnings.
BMO expects an after-tax gain of about C$600 million (C$620 million pre-tax), also recorded as an adjusting item in non-interest revenue, with a pro forma improvement of roughly 15 basis points to its CET1 ratio and no material impact on ongoing earnings.
Francisco Partners, a global investment firm specializing in technology and technology-enabled businesses, brings extensive experience in the payments and fintech sectors.
Its portfolio includes companies such as Verifone, Hypercom, Paymetric, PayLease, and NMI.
The firm views Moneris as a strong platform for further growth in innovation, platform expansion, and modernization while preserving the company’s Canadian identity, leadership team, and local presence, including nearly 2,000 employees and technology infrastructure based in Canada.
As part of the transaction, Jeff Sloan, former President and CEO of Global Payments Inc., will join Moneris as Chairman.
Moneris President and CEO James Hicks noted that Francisco Partners’ expertise positions the company to accelerate its strategy and expand solutions for Canadian businesses of all sizes.
Executives from both banks expressed confidence that the partnership will enhance innovation and support for their commercial clients.
The deal remains subject to customary closing conditions and regulatory approvals, including under Canada’s Competition Act and the Retail Payment Activities Act.
It is expected to close by the end of the first quarter of the banks’ 2027 fiscal year.This transaction reflects a broader industry trend in which banks divest merchant payments businesses amid the high capital and technological demands of a digitizing sector, allowing specialized investors to drive further development.
