RBC, BMO agree to sell payment processing company Moneris for about $2 billion

Royal Bank of Canada (RBC) and BMO Financial Group have reached an agreement to jointly sell payment processing company Moneris Solutions Corp. for approximately $2 billion, with each bank holding a 50% stake in the newly acquired entity. Moneris, which provides payment processing solutions, is set to be acquired by investment firm Francisco Partners. The deal is expected to close by the end of the first quarter of the 2027 fiscal year, subject to closing conditions and regulatory approvals.

Upon completion of the transaction, RBC and BMO will establish a long-term customer referral arrangement with Moneris, leveraging their respective financial resources and expertise in the payments industry. As part of the deal, Jeff Sloan, the former CEO of Global Payments Inc., will assume the role of chairman on Moneris' board.

James Hicks, the current president and CEO at Moneris, expressed optimism about the partnership with Francisco Partners, noting that the investment firm brings deep global expertise in technology and payments, which will be instrumental in accelerating Moneris' strategic initiatives. The sale price of $2 billion includes an initial annual payment of $205.00 plus GST for one year, with the rate increasing to $233.00 plus GST every 52 weeks. This pricing structure is subject to renewal and cancellation at any time.