RBC and BMO to Sell Payments Processor Moneris for $1.44 Billion

Key Facts

1Royal Bank of Canada and Bank of Montreal agreed to sell payments provider Moneris to Francisco Partners.

2The deal is valued at approximately $1.44 billion and is expected to close by the end of Q1 fiscal 2027.

In a move reflecting a shift in strategic priorities for major Canadian lenders, Royal Bank of Canada (RBC) and Bank of Montreal (BMO) have agreed to sell their payments provider, Moneris, to Francisco Partners. The transaction is valued at approximately $1.44 billion, with the private equity firm intending to invest heavily in the company's technology platform and product innovation. According to reports, the deal is expected to reach completion by the end of the first quarter of fiscal 2027.

This divestment highlights a broader trend of traditional banks offloading non-core fintech assets to specialized investment firms. Per market data, the banks are moving forward with this exit to streamline operations while Francisco Partners positions Moneris for its next phase of growth. The transaction represents a significant realignment of the Canadian payments landscape, involving two of the country's most prominent financial institutions.

As of the close on August 11, 2026, the RBC instrument (0UKH.L) stood at $253.66. Investors will be watching for further details regarding the long-term impact of this capital injection on the banks' balance sheets as the 2027 closing date approaches. With no immediate sector-specific catalysts in the upcoming economic calendar, market attention remains on the execution of this $1.44 billion divestiture.

Sources:

IBS Intelligence