RBC and BMO to sell Moneris to Francisco Partners in $1.44 billion deal

• Moneris is one of Canada's largest commerce solutions providers, helping businesses accept and manage payments, and was founded 25 years ago
• RBC expects to record an after-tax gain of approximately C$475 million from the transaction
• The deal is expected to close in the first quarter of fiscal 2027, with both banks establishing ongoing referral agreements with Moneris post-sale

RBC and BMO Sell Moneris to Francisco Partners for $1.44 Billion

Royal Bank of Canada (RBC) and BMO Financial Group have agreed to sell their jointly owned payment solutions company, Moneris Solutions, to technology investment firm Francisco Partners for C$2 billion ($1.44 billion).

Key Transaction Details:

• Each bank owns 50% of Moneris and will receive equal proceeds from the sale
• RBC expects to record an after-tax gain of approximately C$475 million
• Transaction is expected to close in the first quarter of fiscal 2027
• Both banks will maintain long-term referral agreements and ongoing commercial relationships with Moneris post-sale

About Moneris:

Founded 25 years ago, Moneris is one of Canada's largest commerce solutions providers, specializing in helping businesses accept and manage payments.

Market Implications:

The sale represents a strategic shift for both Canadian banking giants, allowing them to monetize their payment processing assets while maintaining business relationships with the platform. The decision to establish referral agreements suggests both RBC and BMO see value in continuing to leverage Moneris's services for their customer bases without direct ownership.

The substantial gain RBC expects to recognize indicates the payment processing business has appreciated significantly under joint bank ownership. For Francisco Partners, the acquisition strengthens their portfolio in the fintech and payment solutions sector, gaining access to a mature, established player in the Canadian market.

The deal reflects broader trends in financial services, where traditional banks are divesting non-core assets to technology-focused investors while maintaining strategic partnerships to serve their customers.