BMO Sells Stake in Moneris to Francisco Partners in $2 Billion Deal | LeapRate
BMO Financial Group has announced it is selling its share of Moneris Solutions Corporation.
The deal is being made together with Royal Bank of Canada, which co-owns Moneris. Both banks have agreed to sell the payments company to Francisco Partners, a technology investment firm, for around $2.0 billion in cash. BMO will receive half of that amount.
Moneris is one of Canada’s biggest names in commerce and payment solutions. Over the past 25 years, it has grown to serve more than 325,000 business locations across the country.
The company helps merchants accept and manage payments through a range of tools built for the Canadian market.
Once the sale closes, BMO and RBC will each sign new long-term referral agreements with Moneris, with the banks continuing to direct customers to Moneris, even though they will no longer own the company.
Sharon Haward-Laird, a senior BMO executive, said Moneris has built trust with Canadian businesses over the years and that the new ownership will help Moneris grow faster while still supporting its customers through the referral deals.
BMO expects to book a gain of about $600 million after tax once the deal closes. The transaction should also boost the bank’s capital position slightly, though it is not expected to change BMO’s regular earnings much going forward.
The sale is expected to close by early 2027, pending regulatory approval. BMO Capital Markets advised on the deal, with Osler, Hoskin and Harcourt LLP providing legal support.
