Francisco Partners Buys Moneris in $1.43 Billion Deal

Francisco Partners has agreed to acquire Moneris Solutions Corp., a Toronto-based payments-technology developer, from Bank of Montreal and Royal Bank of Canada for $2 billion Canadian, or $1.43 billion U.S.

The two institutions have owned the Ontario-based processor as a joint venture since its inception in December 2000.

Moneris reports it processes payments for 325,000 'points of commerce,' accounting for one-third of commerce transactions in Canada online, mobile, and at the counter.

The company says it is the only 'major [payments] provider' in Canada operating with an in-house field-services unit.

Jeff Sloan, former president and chief executive of Global Payments Inc., will join Moneris as its chairman. The deal is expected to close by the end of January.

'It's hard to say if this purchase will make Moneris more competitive,' notes Cliff Gray, principal at Gray Consulting, 'that will play out as [Francisco Partners] takes on governance.'

The investment firm says the deal includes long-term referral agreements with BMO and RBC that will involve funneling potential clients to Moneris.