RBC, BMO to sell Moneris to Francisco Partners in $1.44 billion deal (updated)

Royal Bank of Canada

10/08/2026 23:33

 (Adds details throughout)
    Aug 10 (Reuters) - The Royal Bank of Canada  RY.TO  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  BMO.TO  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)
 ((Manya.Saini@thomsonreuters.com; X: manya__saini;))