RBC, BMO Sell Moneris for C$2 Billion, Maintain Referral Agreements

Royal Bank of Canada (RBC) and Bank of Montreal (BMO) have reached an agreement to sell Moneris, a payments firm they jointly own, for C$2 billion. The sale price is equivalent to US$1.44 billion, representing a valuation multiple of about 2.9 times revenue.

The banks will maintain customer access and ongoing referral agreements with Moneris, ensuring their continued participation in merchant payments. This approach allows them to transfer technology investments to private-equity owner Francisco Partners while preserving the long-term commercial relationships they have built.

Moneris CEO James Hicks stated that the move demonstrates the confidence both banks have in the firm's future, citing the deep relationships they have established with RBC and BMO. The sale is expected to be completed during the first quarter of fiscal 2027.