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RBC and BMO sell Moneris to Francisco Partners
The deal ends more than 25 years of joint ownership of one of Canada’s most important merchant payments businesses. Established by the two banks in 2000, Moneris now processes around one-third of Canadian business transactions and supports more than 325,000 points of commerce.
Banks Retain Moneris Relationship
BMO and RBC will each receive 50% of the proceeds, but the transaction does not represent a complete commercial separation.
Both banks have entered long-term agreements to exclusively refer customers requiring payment services to Moneris, allowing them to retain an important distribution relationship without owning the underlying processing business.
RBC expects to record an after-tax gain of approximately C$475 million when the transaction completes.
The structure reflects a broader trend among banks to reconsider ownership of merchant acquiring and processing operations as competition intensifies from technology-led payments specialists such as Stripe and Adyen.
Francisco Partners Targets Payments Expansion0300
Francisco Partners has extensive experience investing across payments and financial technology, with previous investments including Hypercom, Paymetric, PayLease, NMI and Verifone.
The new ownership will also bring significant industry experience to Moneris’ leadership. Jeff Sloan, the former president and chief executive of Global Payments, is set to become chairman following the acquisition.300
Moneris employs around 2,000 people in Canada and provides services spanning in-store terminals, mobile point-of-sale technology, self-service kiosks, online checkout and e-commerce.
Chief executive James Hicks said Francisco Partners’ expertise would allow the company to accelerate its strategy and expand the range of payment solutions offered to Canadian businesses.
The transaction is expected to close by the end of the first quarter of BMO and RBC’s 2027 fiscal year, subject to regulatory approvals and customary closing conditions.
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