RBC, BMO sell Moneris for $2 billion after more than 25 years

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceBankingFintechRBC, BMO sell Moneris for $2 billion after more than 25 yearsSale of payment processing company to U.S. firm adds capital to banks' war chests, says analyst You can save this article by registering for free here. Or sign-in if you have an account.Moneris, a payment processing company, was created as a joint venture between RBC and BMO in 2000. Photo by Peter J. Thompson/National PostThe Royal Bank of Canada and the Bank of Montreal are selling Moneris Solutions Corp., a company that helps businesses accept card and digital payments from customers, to San Francisco-based investment firm, Francisco Partners, for $2 billion.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOnce the sale is completed, RBC expects to earn about $475 million after-tax, while BMO will gain approximately $600 million. Neither bank expects the sale to have a significant impact on future earnings.“We view this transaction as incrementally positive for both banks, crystallizing value from a non-core asset, adding capital to the war chest,” Matthew Lee, an analyst at Canaccord Genuity Corp., said in a note on Wednesday. “It fits the broader sector trend of banks simplifying their balance sheets and monetizing non-core holdings to redeploy capital.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againCanada’s big banks regularly sell businesses or operations that they no longer consider as part of their core business. In May, for instance, BMO said that it was selling a majority interest in its transportation and finance lending businesses.Moneris was created as a joint venture between RBC and BMO in 2000. Since then, the organization has grown to become one of Canada’s largest commerce solution providers. Today, it helps 325,000 businesses and sales locations across Canada accept payments and represents one in three transactions in Canada.“Moneris has played a central role in enabling Canadian businesses to modernize and scale by connecting them with more consumers, Sean Amato-Gauci, RBC’s Group Head of commercial banking said in a statement on Monday.The deal will allow Moneris to grow further, said Moneris chief executive James Hick. Francisco Partners has a track record for growing technology-based businesses globally, as evidenced by its investments in companies like Hypercom, Paymetric, PayLease and Verifone, Moneris said.Francisco Partners sees a significant opportunity for long-term growth with Moneris, “while preserving the deeply Canadian identity,” Peter Christodoulo, who is a partner at the company, said in a statement.The deal is expected to close by the end of the first quarter of 2027. Despite selling the company, both banks will continue to partner with Moneris in the form of exclusive, long-term referral arrangements.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.