TORONTO, August 10, 2026, 19:44 EDT — The announcement came after U.S. and Canadian equity markets had shut for the day.
- Royal Bank of Canada and Bank of Montreal reached an agreement to sell Moneris for C$2 billion.
- RBC anticipates an after-tax profit of approximately C$475 million.
- The banks will maintain ongoing long-term referral and commercial relationships with Moneris.
- The transaction is anticipated to be completed during the first quarter of fiscal 2027.
Royal Bank of Canada NYSE:RY and Bank of Montreal NYSE:BMO have reached a deal to divest their jointly held payments firm Moneris Solutions to Francisco Partners. The deal puts Moneris’s valuation at C$2 billion, equivalent to roughly US$1.44 billion.
While the banks will no longer hold direct ownership, they will maintain customer access. Each bank will uphold long-term referral agreements and other commercial partnerships with Moneris. This approach allows them to continue participating in merchant payments, while transferring ongoing technology investments to a private-equity owner.
Moneris CEO James Hicks said the move demonstrated ongoing backing from both banks. “The deep relationships we have built with BMO and RBC extend well beyond ownership. Their decision to establish long-term referral agreements and maintain ongoing commercial relationships with Moneris reflects the confidence both organizations have,” he said. Reuters
| Deal term | Verified figure |
|---|---|
| Moneris sale value | C$2.0 billion / US$1.44 billion |
| Seller ownership | 50% RBC / 50% BMO |
| Gross value per seller | C$1.0 billion |
| RBC expected after-tax gain | Approximately C$475 million |
| BMO accounting gain | Undisclosed |
| Expected closing | First quarter of fiscal 2027 |
The gross value per bank amounts to C$1 billion, reflecting their equal stakes. This figure represents value, not profit. RBC anticipates a net gain after taxes of about 47.5% of its gross allocation. BMO did not disclose an equivalent gain figure in its statement.
The price hit the top of the C$1.5 billion to C$2 billion range disclosed when the sale process surfaced in August 2025. Moneris was established by the two banks 25 years back.
| Moneris scale measure | Figure | Deal-value comparison |
|---|---|---|
| Points of commerce | 325,000+ | Roughly C$6,154 for each point |
| Transactions per year | 5 billion+ | Approximately C$0.40 per yearly transaction |
| Annual revenue reported during 2025 sale process | Nearly C$700 million | Roughly 2.9 times revenue |
Moneris states it serves upwards of 325,000 points of commerce, handling more than 5 billion transactions annually. Reuters previously reported annual revenue of approximately C$700 million at the outset of the sale process. The above value multiples are straightforward calculations based on these numbers, not official company forecasts.
The comparison offers some value, but isn’t exact. Payment processors manage much greater transaction volumes than what appears as revenue. As a result, the acquisition price is determined by elements such as fee structures, merchant loyalty, and necessary investment, rather than the total sum of payments handled.
Moneris provides Francisco Partners with access to a significant Canadian merchant network. For the banks, the sale turns an established joint venture into cash and keeps distribution in place. The referral agreements remain the central connection.
Investors could continue to prioritize valuation over the one-off profit. Canadian financial shares started the week at nearly their highest level in eight years, accounting for approximately 37% of the Toronto Stock Exchange. Major Canadian banks were valued at about 15 times forward earnings, compared to close to 12 times for their U.S. counterparts.
| Market position at August 10 close | RBC | BMO |
|---|---|---|
| Share price in U.S. listing | US$210.79 | US$181.91 |
| One-day change | -0.14% | +0.20% |
| Forward price-to-earnings | 17.72 | 17.28 |
| Analyst average rating | Buy | Hold |
| Consensus price target | US$193.28 | US$161.71 |
| Percent to target | -8.31% | -11.10% |
| Estimated EPS growth for fiscal 2026 | 11.49% | 19.36% |
Data from S&P Global analysts, aggregated by StockAnalysis, indicated that each bank had coverage from 14 analysts. RBC was given a Buy consensus, whereas BMO received a Hold rating. The mean price targets were lower than the latest U.S.-listed closing prices, signaling that recent rallies had squeezed anticipated upside.
The agreement was announced after markets closed on Monday. The market’s first complete reaction will come on Tuesday. Investors will assess if the cash from the deal compensates for forgoing future Moneris profits and oversight.
Risks: The deal is subject to regular approvals and may not close as scheduled. Banks face potential losses in long-term payment revenues. Referral volumes might not meet expectations. Private-equity ownership could alter pricing or shift investment focus.
BMO is set to release its next earnings update later in August, while RBC will report on August 27. Key new details will include BMO’s accounting gain, information on the use of proceeds, and each bank’s projection of earnings lost following the closure.
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