RBC and BMO are exploring the possibility of selling Moneris — Canada’s leading payment processor, valued at approximately $2 billion.
This is reported by Finway
Moneris: A Key Player in Canada’s Payment Services Market
Founded in 2000 by the Royal Bank of Canada (RBC) and the Bank of Montreal (BMO), Moneris is one of the largest payment processors in Canada. The company processes about one in every three business transactions in the country. It offers digital, mobile, and POS payment solutions for approximately 325,000 merchant locations across Canada.
“The owners are in the early stages of exploring a potential sale of Moneris, sources who wished to remain anonymous said, as the negotiations are confidential.”
Reasons for Potential Sale and Market Trends
Reportedly, RBC and BMO are still in the initial stages of evaluating options for the sale of Moneris. The owners are being advised by boutique investment bank PJT Partners, as well as the investment divisions of RBC Capital Markets and BMO Capital Markets.
Moneris generates approximately $700 million in revenue annually. According to sources, the company’s value could be around $2 billion or slightly less. However, a decision on the sale has not yet been finalized, and the owners may choose to retain a stake or keep the business entirely within their portfolio.
In recent years, the payment services market in North America has been undergoing significant changes due to the digitization of the industry. Banks are increasingly selling their payment divisions to focus on core activities and to avoid the need for continuous capital investment in the competitiveness of such services. New owners often include companies specializing in payment technologies that expand their business through mergers and acquisitions, as well as private equity funds interested in stable income from fees.
Last month, TD Bank, another leading financial player in Canada, entered into a strategic partnership with Fiserv to develop its Canadian merchant payment services division.