RBC, BMO agree to sell payment processing company Moneris for about $2 billion
The cash sale includes long-term referral agreements and a board change as Moneris keeps serving about 325,000 points of commerce.
- On Monday, Royal Bank of Canada and BMO Financial Group agreed to sell Moneris Solutions to Francisco Partners for about $2 billion, with each bank receiving a 50 per cent share.
- Banks have increasingly shed payments businesses as accelerated digitization in North American markets forces them to regularly spend capital to remain competitive; Moneris has served commerce for over 25 years.
- RBC expects to record an after-tax gain of about $475 million from the sale, while the bank holds a market cap of roughly $408 billion and BMO's market value has surged to nearly $177.6 billion.
- Following the closing, RBC and BMO will enter long-term customer referral arrangements with Moneris, and Jeff Sloan, former CEO of Global Payments Inc., will join the company's board as chairman.
- The transaction remains subject to customary closing conditions and regulatory approvals under the Retail Payment Activities Act and Competition Act, with completion expected by the end of the first quarter of fiscal 2027.
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RBC and BMO to sell off Canadian payment giant Moneris in $2-billion deal
BMO and RBC are selling off Moneris, one of Canada’s largest payment processors, to US-based private equity firm Francisco Partners. The news: The two Canadian banks announced an agreement to sell their co-owned operation for $2 billion CAD on Monday evening. As part of the deal, BMO and RBC will each receive 50 percent of the sale’s proceeds and exclusively refer their customers to Moneris going forward. The transaction is expected to close in…
TVA Nouvelles
Le Journal de MontrealRBC and BMO announced on Tuesday the sale of Moneris to American investment firm Francisco Partners for approximately $2 billion.
Royal Bank of Canada (RBC) and BMO Financial Group have agreed to jointly divest Moneris Solutions Corporation.
RBC, BMO to sell Moneris to Francisco Partners in $2 billion deal
The Royal Bank of Canada and BMO Financial Group on Monday agreed to sell jointly owned Moneris Solutions to technology investment firm Francisco Partners in a deal valued at $2 billion (US$1.44 billion).
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