Aug 10 (Reuters) – 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 C$2 billion ($1.44 billion).
Here are some details:
• Moneris, founded 25 years ago, is one of Canada’s largest commerce solutions providers, helping businesses accept and manage payments.
• BMO and RBC will each receive a 50% share from the sale.
• RBC said it expects to record an after-tax gain of about C$475 million from the sale, which is expected in the first quarter of fiscal 2027.
• Many banks have shed their payments businesses as the accelerated pace of digitization in the North American payments industry in recent years pushed them to regularly spend capital to remain competitive.
• “The deep relationships we have built with BMO and RBC extend well beyond ownership. Their decision to establish long-term referral agreements and maintain ongoing commercial relationships with Moneris reflects the confidence both organizations have,” said Moneris CEO James Hicks.
• Moneris said that with access to Francisco Partners’ global platform it will accelerate modernization and growth across small, medium and enterprise businesses in the Canadian marketplace.
• U.S.-listed shares of RBC were little changed in extended trading. The bank’s Toronto-listed stock has risen nearly 26% so far this year, giving it a market cap of roughly C$408 billion.
• Meanwhile, BMO’s stock has surged 42% with the bank’s market value now at nearly C$177.6 billion, according to LSEG data.
($1 = 1.3937 Canadian dollars)
(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar and Diti Pujara)
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