Royal Bank of Canada and Bank of Montreal have agreed to sell their jointly owned payments processor Moneris to Francisco Partners for approximately C$2 billion in cash, the companies announced on August 10.
The transaction transfers one of Canada's largest merchant acquiring platforms to the San Francisco-based private equity firm. Moneris processes payments for more than 325,000 merchants across Canada and serves the retail, hospitality, e-commerce and subscription sectors. The sale marks a significant exit for RBC and BMO, which have held the business since its formation in 2000 as a merger of their individual merchant services divisions.
Francisco Partners invests in software and services companies. The firm's portfolio includes payments and fintech assets. A person familiar with the deal said Francisco Partners plans to expand Moneris' product suite and geographic footprint, though no specific targets or timeline have been disclosed.
Moneris generated over C$600 million in annual revenue as of 2023, according to publicly available financial data. The C$2 billion valuation represents roughly 3.3 times that revenue figure, a multiple within range for mid-market payments platforms with established merchant networks and recurring revenue. Canadian payments processors have attracted increased private equity interest over the past three years as acquirers seek exposure to growing digital commerce volumes.
RBC and BMO did not disclose the deal's internal rate of return or hold period in their announcement. Both banks retain the option to repurchase a minority stake in Moneris following the close, according to transaction documents. The sale is expected to close in the fourth quarter of 2026, subject to regulatory approval.
The transaction reduces the two largest Canadian banks' direct exposure to merchant acquiring at a time when fintech platforms and independent processors have expanded market share. RBC and BMO will continue to serve as Moneris' primary banking partners following the sale, a person with knowledge of the arrangement said.
Francisco Partners acquired Equinix's managed services business in 2023 and has made over 20 technology-focused acquisitions since 2020. The firm manages approximately $46 billion in assets under management across its active funds. If Francisco Partners closes the Moneris acquisition by year-end as planned, the transaction will mark the firm's largest Canadian fintech investment to date.
