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Bank of Montreal and Royal Bank of Canada are offloading their payments joint venture Moneris to the US-based tech investor Francisco Partners in a cash deal valued at approximately CAD 2 billion ($1.44 billion). Subject to regulatory approval, the transaction is expected to close by the end of Q1 2027. BMO and RBC will each receive CAD 1 billion from the sale. The two Canadian banks have been exploring the sale of Moneris for the past 12 months. New York-based investment bank PJT Partners served as the exclusive financial advisor to the deal.
New leadership takes the helm
Industry veteran Jeff Sloan will assume the role of chairman at Moneris as part of the acquisition. Sloan notably led Global Payments for almost a decade as CEO. He currently holds board positions at Corpay, Guidewire Software, and NCR Voyix, and acts as an advisor to Oak HC/FT. Headquartered in Toronto with five additional offices throughout Canada, Moneris was created in 2000 to provide e-commerce, omnichannel, and point-of-sale solutions to businesses. The company also offers tools for fraud protection, gift cards, and data insights.
Scale of operations
The company employs more than 2,000 people and, under the leadership of president and CEO James Hicks, enables businesses to accept and manage payments across over 325,000 points of commerce. Moneris claims to process over five billion transactions each year, accounting for approximately one in three retail purchases in Canada. The acquisition gives Francisco Partners a significant foothold in the Canadian market. FP holds investments in fintech companies including PayLease, NMI, and Verifone.
Moneris is a major processor, handling a massive volume of retail transactions across Canada. The company’s scale gives it a unique position to influence how merchants operate. This deal represents a significant shift in ownership for a long-standing Canadian institution. The banks are likely looking to shed non-core assets to focus on their primary banking operations. For Francisco Partners, the purchase provides immediate scale and established relationships within the Canadian payment ecosystem. The long-term agreements with both BMO and RBC to “exclusively refer customers” to the paytech will help maintain the business’s revenue streams. The transaction must still pass regulatory hurdles before it can be finalized.
James Hicks will remain president and CEO of the paytech following the sale. The firm processes over five billion transactions annually, a volume that accounts for roughly one in three retail purchases in Canada. Francisco Partners has acquired the joint venture to establish a significant presence in the country. The deal is expected to close by the end of Q1 2027, pending regulatory approval. [1] User Blocked After Policy Violation
