RBC and BMO Explore $2B Sale of Moneris
Hey everyone, there’s some big news in the Canadian payments space that’s worth talking about. Royal Bank of Canada, or RBC, and the Bank of Montreal, BMO, are reportedly considering selling their joint payments venture, Moneris, in a deal that could reach as high as $2 billion. Now, this isn’t just a minor shift—Moneris is one of the largest payment processors in Canada, handling roughly one out of every three business transactions nationwide. So, this potential sale has a lot of people paying close attention.
Moneris was launched back in 2000 by RBC and BMO, and it has grown steadily since then. Today, it provides digital, mobile, and in-store payment solutions for over 325,000 merchant locations across the country. The company’s scale and established infrastructure make it a major player in the market, and it generates close to $700 million in annual revenue. Based on that, sources familiar with the talks suggest the $2 billion valuation could be justified, though nothing is guaranteed yet. The banks could ultimately decide to hold onto Moneris, either in part or in full, depending on how the negotiations unfold.
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The sale process is reportedly being advised by boutique investment bank PJT Partners, along with RBC and BMO’s own investment banking teams. As is often the case, details are being kept private for now, but the move aligns with a broader trend in the financial sector. Over the past few years, banks in North America have increasingly been shedding their payments businesses. The reason? Staying competitive in payments requires continual investment in technology, and some banks prefer to focus their capital on higher-margin areas like digital banking, wealth management, and AI-driven services.
Potential buyers for Moneris are likely to include both specialized payments technology companies and private equity firms. Payment tech firms such as Fiserv, Adyen, or Stripe could see Moneris as an opportunity to expand their reach in Canada, while private equity firms might be drawn to the recurring revenue model and operational scale that Moneris offers. Regulatory approval will be a key factor, since Moneris controls such a large share of the Canadian market, and Canada’s Competition Bureau will want to make sure any transaction doesn’t reduce competition.
In many ways, this potential sale is a snapshot of the changing landscape in payments. Banks are increasingly offloading legacy assets, private equity is actively investing in the sector, and fintech players are looking to scale through acquisitions. For RBC and BMO, this could free up capital for new initiatives, while for potential buyers, it’s a chance to tap into one of Canada’s most entrenched payment networks.
So, while the deal isn’t set in stone, the Moneris story highlights a bigger shift in the financial world—one where digital transformation, strategic divestments, and recurring revenue models are reshaping how money moves across the country. It’s definitely a story to watch for anyone interested in the future of banking and payments in Canada.
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