RBC, BMO sell payment processor Moneris in $2 billion PE deal
As part of the transaction, BMO and RBC have each entered into exclusive long-term referral agreements with Moneris, ensuring continued ties between the processor and its former parent banks even after the ownership transition is complete.
James Hicks will remain as President and Chief Executive Officer following the change of ownership, providing continuity for the company’s clients and partners. The company has also announced that Jeff Sloan, the former President and CEO of Global Payments Inc., will join Moneris as Chairman, bringing significant global payments expertise to the leadership team.
Hicks said the announcement “marks an exciting next step in Moneris’ continued evolution as the company that powers Canadian commerce,” adding that the company plans to accelerate its strategy while maintaining its commitment to customers and its Canadian operations.
Francisco Partners brings considerable resources to the table. The San Francisco-based firm has raised more than US$75 billion in capital over its 25-year history and has a track record in the payments sector, having previously backed companies including Verifone, NMI, and Hypercom.
The acquisition also underscores the growing role of private equity in reshaping Canadian financial infrastructure. The deal requires sign-off under the relatively new Retail Payment Activities Act, which came into force to provide oversight of payment service providers operating in Canada.
