DivestmentAug 11, 2026, 06:07 AM
RBC Sells Moneris to Francisco Partners for $2B; Expects $475M Gain
AI Summary
Royal Bank of Canada (RBC) announced an agreement with BMO Financial Group to sell their jointly-owned Moneris Solutions Corporation to Francisco Partners for approximately $2 billion in cash. RBC's share of the consideration is 50%, and the bank expects to record an after-tax gain of approximately $475 million. The transaction, anticipated to close by the end of the first quarter of fiscal year 2027, will also see RBC and BMO enter into new exclusive, long-term customer referral arrangements with Moneris. RBC expects a marginally positive impact on its CET1 ratio and no significant impact on future run-rate earnings.
Key Highlights
- Royal Bank of Canada (RBC) and BMO Financial Group agreed to sell jointly-owned Moneris Solutions Corporation to Francisco Partners.
- The transaction involves a cash consideration of approximately $2 billion.
- RBC's share of the sale consideration is 50%.
- RBC expects to record an after-tax gain of approximately $475 million ($560 million pre-tax) on closing.
- The transaction is expected to close by the end of the first quarter of fiscal year 2027.
- RBC and BMO will enter into new exclusive, long-term customer referral arrangements with Moneris.
- The transaction is expected to have a marginally positive impact on RBC’s common equity Tier 1 (CET1) ratio.
Price Impact
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