Moneris Solutions Corp.

Fintech · Payments · Private Equity

Acquisition

Francisco Partners acquires Moneris from RBC and BMO for $1.43B

The sale hands control of one in three Canadian payment transactions to a foreign private equity owner.

• Francisco Partners, a San Francisco private equity firm, agreed to acquire Moneris Solutions Corp. from joint owners Royal Bank of Canada and Bank of Montreal for about C$2 billion, roughly $1.43 billion USD.
• Moneris processes payments at roughly 325,000 points of commerce across Canada, handling about one in three of the country's payment transactions online, mobile and in-store.
• Jeff Sloan, former CEO of Global Payments, will join Moneris as chairman, and BMO and RBC will each sign new long-term exclusive customer referral agreements with the company post-closing.
• RBC expects to net about $475 million after tax from the sale and BMO about $600 million, with both banks' shares rising on the announcement.
• BMO and RBC had jointly owned Moneris as a 50/50 venture since founding the payments processor in December 2000.
• Handing a payments processor that touches a third of Canadian commerce to a U.S. private equity firm has revived debate over Canada's financial and data sovereignty amid ongoing trade tensions with Washington.