Royal Bank of Canada and Bank of Montreal have agreed to sell Moneris Solutions Corporation to Francisco Partners in a cash deal valued at about C$2 billion, giving both banks a sizeable financial gain while preserving their long-term commercial relationship with the payments company.
RBC and BMO each own 50% of Moneris, so each bank is expected to receive roughly C$1 billion in gross cash consideration before taxes, transaction costs and closing adjustments.
The accounting gains will be smaller than the cash proceeds. RBC expects an approximately C$560 million pre-tax gain and C$475 million after tax. BMO expects about C$620 million before tax and C$600 million after tax.
Together, the banks are currently projecting approximately C$1.075 billion in combined after-tax gains from the sale.
How the C$2 billion Moneris deal affects RBC and BMO
For shareholders, the most important point is that the C$1 billion each bank receives is not the same as profit. The final accounting gain depends on the carrying value of the investment and other transaction-related adjustments.
BMO has also said the transaction should improve its Common Equity Tier 1 ratio by about 15 basis points on a pro forma basis. CET1 is a closely watched measure of a bank’s highest-quality capital.
BMO does not expect the sale to have a significant impact on its future run-rate earnings, which suggests Moneris is not expected to leave a major hole in recurring profitability.
Investors tracking the broader Canadian banking sector can also compare the deal with the factors driving attention around BMO stock, including earnings, capital strength and shareholder returns.
RBC and BMO are not completely leaving Moneris
The banks are selling their ownership stakes, but they are not ending their relationship with the payments company.
After the transaction closes, RBC and BMO are expected to enter exclusive, long-term customer referral agreements with Moneris. That means they can continue directing eligible commercial customers to Moneris even though Francisco Partners will own the business.
For merchants, this is an important point. The ownership change does not automatically mean that existing connections between Moneris and the two banks will disappear.
Why Moneris is worth C$2 billion
Moneris has been operating in Canadian payments for more than 25 years and has built significant scale.
The company says it supports payments at more than 325,000 points of commerce and represents approximately one in three transactions across Canada.
Its business includes ecommerce and omnichannel payments, point-of-sale hardware and software, integrated business tools, data services and payment acceptance across physical stores, online channels and mobile devices.
Moneris also employs nearly 2,000 people across Canada. Its headquarters and technology infrastructure are based in the country, with offices in Toronto, Sackville, Montreal, Quebec City, Calgary and Burnaby.
According to the official Moneris acquisition announcement, the company intends to maintain its Canadian operations and continue serving businesses across the country after the ownership transition.
What Francisco Partners could change
Francisco Partners specializes in technology investments and has previous experience in payments and financial technology through companies including Hypercom, Paymetric, PayLease, NMI and Verifone.
That background suggests the acquisition is about more than Moneris’ existing payment-processing volume. Francisco Partners has said it plans to support innovation, platform expansion and long-term growth as payments become increasingly connected with software, ecommerce, analytics and digital commerce.
Jeff Sloan, the former president and CEO of Global Payments Inc., will also join Moneris as chairman. Moneris president and CEO James Hicks is expected to remain in place.
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What the sale means for RBC shareholders
RBC’s expected C$475 million after-tax gain gives investors a clear near-term financial impact from the transaction.
The bank plans to treat the gain as an adjusting item, meaning investors should separate it from recurring operating earnings when evaluating RBC’s underlying performance.
For additional market context, RBC’s recent share-price performance and analyst expectations show how investors are also weighing earnings growth, valuation and capital allocation.
What happens to Moneris customers?
Moneris has said its commitment to customers, partners and employees will remain unchanged. The ongoing referral agreements with RBC and BMO are also designed to provide continuity for business clients.
Customers should note that the acquisition has been announced but has not yet closed. Francisco Partners has signed a definitive agreement, but regulatory approvals and customary closing conditions still need to be completed.
When will the Moneris sale close?
The transaction requires approvals under Canada’s Retail Payment Activities Act and clearance under the Competition Act.
The parties currently expect the deal to close by the end of the first quarter of RBC and BMO’s fiscal 2027.
Until then, RBC and BMO remain Moneris’ owners, and the projected gains remain estimates.
The key point for investors and customers is that RBC and BMO are monetizing their Moneris ownership while maintaining a long-term business relationship with the company. Each bank receives roughly half of the C$2 billion consideration, both expect substantial accounting gains, and Moneris is set to continue operating in Canada under Francisco Partners’ ownership.
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