Summary
RBC and BMO agreed to sell their jointly owned payments processor Moneris to Francisco Partners in a C$2 billion cash transaction, ending more than 25 years of joint ownership. Moneris processes around one-third of Canadian business transactions and supports more than 325,000 points of commerce. The banks retain a distribution relationship via long-term exclusive referral agreements, and Jeff Sloan (former Global Payments CEO) will become chairman.
Key Points
- C$2 billion cash transaction to Francisco Partners; RBC and BMO each receive 50%
- Moneris processes ~one-third of Canadian business transactions; 325,000+ points of commerce
- Established 2000; more than 25 years of joint bank ownership ending
- Banks sign long-term agreements to exclusively refer customers needing payment services to Moneris
- RBC expects after-tax gain of ~C$475 million
- Francisco Partners experience: Hypercom, Paymetric, PayLease, NMI, Verifone
- Jeff Sloan (former Global Payments CEO) to become chairman
- Moneris employs ~2,000 in Canada; in-store terminals, mobile POS, kiosks, online checkout, e-commerce
- Close expected end of Q1 of BMO/RBC's 2027 fiscal year (regulatory approvals pending)
- Context: banks reconsidering ownership of merchant acquiring as competition intensifies from Stripe and Adyen