Royal Bank of Canada (TSX: RY) (NYSE: RY) announced that together with BMO Financial Group, it has entered into an agreement for the sale of jointly-owned Moneris Solutions Corporation (“Moneris”), a leader in Canadian commerce solutions, to Francisco Partners, a global technology investment firm, for cash consideration of approximately $2 billion, of which RBC’s share is 50%. Concurrent with the closing of the transaction, RBC and BMO will enter into new exclusive, long-term customer referral arrangements with Moneris.
The transaction marks the next chapter for Moneris, positioning the business to accelerate its strategy and continue delivering value to Canadian businesses. Since its creation 25 years ago, Moneris has become one of Canada’s largest commerce solutions providers, helping businesses accept and manage payments at over 325,000 points of commerce. Moneris offers versatile payment options and integrated solutions customized for the Canadian market, allowing merchants to focus on running and growing their business.
With a deep history in payments and financial technology and a strong track record in accelerating growth, Francisco Partners brings global experience in scaling financial technology companies and deep expertise in innovative Payments and Commerce offerings. Francisco Partners’ complementary portfolio companies include leaders in embedded payments, omni-channel commerce gateways as well as smart point-of-sale (POS) solutions.
With access to Francisco Partners’ global platform, Moneris is expected to accelerate modernization and growth across small, medium and enterprise businesses in the Canadian marketplace.
RBC and BMO will continue their long-standing relationships with Moneris through exclusive long-term customer referral arrangements, which will ensure that new and existing business clients receive the trusted support and innovative solutions they have come to expect from Moneris over many years.
“Moneris has played a central role in enabling Canadian businesses to modernize and scale by connecting them with more consumers more often through innovative payments solutions across the commerce ecosystem,” said Sean Amato-Gauci, Group Head, Commercial Banking, RBC. “The trusted team, leading platforms and unwavering commitment to clients that Moneris is known for will be leveraged and amplified by Francisco Partners in this next stage of growth. We’re eager to see the accelerated investment in innovation and modernized solutions Moneris will bring to our valued business clients and the Canadian market.”
The transaction is expected to close by the end of the first quarter of fiscal year 2027, subject to customary closing conditions, including receipt of required regulatory approvals. RBC expects to record a gain on closing of approximately $475 million after-tax ($560 million pre-tax) which will be treated as an adjusting item. The expected gain is based on current estimates and subject to change. The transaction is also expected to have a marginally positive impact to RBC’s common equity Tier 1 (“CET1”) ratio1 upon close and is not expected to have a significant impact on the bank’s future run rate earnings.
RBC Capital Markets acted as financial advisor to RBC. Blake, Cassels & Graydon LLP acted as legal counsel to RBC.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 101,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada’s biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.
CET1 is calculated based on OSFI’s Capital Adequacy Requirements (CAR) guideline.
Source : RBC Royal Bank
