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The Royal Bank of Canada and the Bank of Montreal are selling Moneris Solutions Corp., a company that helps businesses accept card and digital payments from customers, to San Francisco-based investment firm, Francisco Partners, for $2 billion.
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Once the sale is completed, RBC expects to earn about $475 million after-tax, while BMO will gain approximately $600 million. Neither bank expects the sale to have a significant impact on future earnings.
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“We view this transaction as incrementally positive for both banks, crystallizing value from a non-core asset, adding capital to the war chest,” Matthew Lee, an analyst at Canaccord Genuity Corp., said in a note on Wednesday. “It fits the broader sector trend of banks simplifying their balance sheets and monetizing non-core holdings to redeploy capital.”
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Canada’s big banks regularly sell businesses or operations that they no longer consider as part of their core business. In May, for instance, BMO said that it was selling a majority interest in its transportation and finance lending businesses.
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Moneris was created as a joint venture between RBC and BMO in 2000. Since then, the organization has grown to become one of Canada’s largest commerce solution providers. Today, it helps 325,000 businesses and sales locations across Canada accept payments and represents one in three transactions in Canada.
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“Moneris has played a central role in enabling Canadian businesses to modernize and scale by connecting them with more consumers, Sean Amato-Gauci, RBC’s Group Head of commercial banking said in a statement on Monday.
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The deal will allow Moneris to grow further, said Moneris chief executive James Hick. Francisco Partners has a track record for growing technology-based businesses globally, as evidenced by its investments in companies like Hypercom, Paymetric, PayLease and Verifone, Moneris said.
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Francisco Partners sees a significant opportunity for long-term growth with Moneris, “while preserving the deeply Canadian identity,” Peter Christodoulo, who is a partner at the company, said in a statement.
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The deal is expected to close by the end of the first quarter of 2027. Despite selling the company, both banks will continue to partner with Moneris in the form of exclusive, long-term referral arrangements.
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