Francisco Partners is in discussions to acquire payments processor Moneris, a joint venture owned by Royal Bank of Canada and Bank of Montreal, in a deal that could value the business at up to $2bn, according to a report by the Financial Times citing unnamed people familiar with the matter.
Moneris, one of Canada’s largest merchant payment processors, handles more than 5bn transactions annually. The company is co-owned by Royal Bank of Canada and Bank of Montreal, both of which have been exploring an exit from the business amid a broader industry shift away from in-house payment processing.
The discussions are ongoing and remain subject to change, with the possibility that other bidders could emerge or that negotiations ultimately fail to result in a transaction. A deal, if completed, could be finalised as soon as this summer.
The potential acquisition would align with Francisco Partners’ established focus on financial technology and payments infrastructure. The firm already owns payments-related assets including Verifone and holds a stake in Paysafe, and has been actively expanding its portfolio across enterprise software and fintech.
The deal also reflects a wider trend in North American banking, where institutions have been divesting merchant acquiring and payments businesses in response to increasing competition from digital-first platforms such as Stripe and Adyen. Several major banks, including TD Bank, Bank of America, Fifth Third Bank and PNC Financial Services, have all reduced or exited parts of their payments operations in recent years.
Francisco Partners manages approximately $45bn in assets and has been active in recent dealmaking, including the take-private acquisition of Jamf and the purchase of Blackline Safety.
The firm is also in the market raising a new $14bn fund, though broader technology deal activity has moderated as investors assess the longer-term impact of artificial intelligence on software and payments businesses.
