Royal Bank of Canada has announced a $2 billion sale of Moneris to Francisco Partners, a move that could reshape payment solutions for Canadian businesses. This transaction marks a significant shift in the landscape of Canadian commerce solutions.
On August 10, 2026, RBC revealed its agreement with BMO Financial Group to sell Moneris Solutions Corporation to Francisco Partners for approximately $2 billion, with RBC retaining a 50% stake. This strategic move aims to enhance Moneris' ability to innovate and grow within the Canadian market, benefiting businesses across the country.
Investor takeaway: Long-term Canadian investors should watch how this transition impacts Moneris' growth trajectory and the competitive landscape in payment solutions.
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Bank of Montreal Pref Class B
BMO-PE.TO
BMO-PE.TO
Bank of Montreal Pref Class B
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Market cap
$83.44B
P/E
1.5x
Div. yield
24.51%
Div. / share
$6.60
52W high
$27.17
52W low
$24.60
Beta
1.15
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Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on BMO-PE's historical volatility
30-Day Vol
9.7%
Annualized
90-Day Vol
8.3%
Annualized
Trend (90d)
+3.4%
Annualized drift
90d Mean
C$27.25
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$27.03 | C$26.14 – C$27.95 |
| 60 trading days | C$27.14 | C$25.89 – C$28.45 |
| 90 trading days | C$27.25 | C$25.72 – C$28.87 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
What the $2 Billion Sale Means for Moneris' Future
With a cash consideration of approximately $2 billion, RBC's sale of Moneris is expected to yield a significant gain, enhancing the bank's capital position while allowing Moneris to focus on modernization and growth. This transaction could redefine the competitive landscape in Canadian payment solutions as Moneris seeks to innovate under Francisco Partners' guidance.
Bull case
- The sale allows Moneris to tap into Francisco Partners' expertise in financial technology, which could speed up innovation in payment solutions.
- RBC and BMO's ongoing referral arrangements might provide stability and a steady client base for Moneris during this transition.
- RBC is expected to gain around $475 million after taxes, which could strengthen its financial position.
Bear case
- The transition may create uncertainties for Moneris' existing clients as they adjust to new ownership and strategies.
- Regulatory approvals and closing conditions could delay the transaction, which might affect market confidence.
- Moneris' performance after the sale may not meet past expectations, posing risks to its growth.
RBC and BMO's Strategic Move
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The joint sale of Moneris by RBC and BMO to Francisco Partners highlights a strategic shift in the Canadian financial landscape. By divesting from Moneris, both banks can focus on their core banking operations while allowing Moneris to thrive under a dedicated technology investment firm. This partnership is expected to enhance Moneris' capabilities, enabling it to better serve over 325,000 merchants across Canada.
What Francisco Partners Brings to Moneris
Francisco Partners, known for its expertise in scaling financial technology companies, is poised to inject fresh capital and innovative strategies into Moneris. This firm has a history of enhancing payment solutions and commerce offerings, which could lead to significant advancements in Moneris' service delivery. As the Canadian market continues to evolve, Moneris' alignment with Francisco Partners may foster new growth opportunities.
The Future of Payment Solutions in Canada
With the sale expected to close by the end of the first quarter of fiscal year 2027, the Canadian payment solutions landscape is set for a transformation. Moneris aims to accelerate its modernization efforts, potentially reshaping how businesses engage with consumers through innovative payment solutions. As this transition unfolds, stakeholders should monitor how these changes impact the competitive dynamics within the Canadian commerce ecosystem.
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This content has been reviewed by CFA® charterholders and Certified Financial Planners (CFP®) with over a decade of experience in Canadian financial markets. All information is fact-checked against official Canadian sources and regulations.
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