Latest news with #BankOfMontreal
Yahoo
4 days ago
- Business
- Yahoo
RBC, BMO explore sale of $2 billion payments processor Moneris, Reuters reports
-- Royal Bank of Canada and Bank of Montreal are considering selling their jointly owned payments processor, Moneris, in a deal that could fetch as much as $2 billion, according to Reuters, citing people familiar with the matter. The move comes as the banks weigh options for the business they founded together in 2000. Moneris is one of Canada's largest payment processors, handling one in every three business transactions nationwide. The company serves approximately 325,000 merchant locations with digital, mobile and in-store payment systems. The lenders are in the early stages of exploring a potential sale, the sources said, requesting anonymity because the discussions are private. Advisors include boutique investment bank PJT Partners, along with RBC Capital Markets and BMO Capital Markets. Moneris generates close to $700 million in annual revenue, according to the people. Based on these figures, the valuation could approach $2 billion, though Reuters reports some suggested the final price might come in slightly lower. A sale is not certain and the banks could choose to keep part or all of the company, the sources cautioned. Still, an outright transaction would mark one of the most significant moves in Canada's payments sector in recent years. Related articles RBC, BMO explore sale of $2 billion payments processor Moneris, Reuters reports Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names If Powell goes, does Fed trust go with him? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Exclusive-RBC, BMO planning sale of $2-billion Canadian payments venture, sources say
By Milana Vinn and David French (Reuters) -Royal Bank of Canada and Bank of Montreal have placed their Canadian payments joint venture up for sale, in a deal that may value the business as highly as $2 billion, four people familiar with the matter said. Moneris is one of the largest payment processors in Canada, handling one in every three business transactions in the country. It was founded in 2000 by the two banks, and offers digital, mobile, and in-store payment systems for about 325,000 merchant locations, according to its website. The owners are in the early stages of exploring a potential sale of Moneris, according to the people, who asked not to be named because the talks are private. Boutique investment bank PJT Partners, as well as investment bankers from RBC Capital Markets and BMO Capital Markets, are advising on the sale effort. Moneris generates nearly $700 million in annual revenue, so the sources estimated this could equate to a $2-billion valuation, or slightly below that amount. A sale is not guaranteed, and the owners could ultimately retain some or all of the business, the people added. BMO, Moneris, and PJT declined to comment. RBC did not respond to a request for comment. As the pace of digitization has increased in the North American payments industry in recent years, with the need to regularly spend capital to remain competitive, many banks have shed their payments businesses. They have found willing buyers in payments companies, which have been growing through mergers and acquisitions to boost geographic scale and product offerings, as well as private equity firms, which value the recurring fee revenue that payments businesses generate. Last month, Canada's TD Bank said it was forming a strategic partnership with Fiserv in relation to its Canadian merchant payments business. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
BMO exploring sale of transportation finance arm, Bloomberg News reports
(Reuters) -Canada's Bank of Montreal is exploring a sale of its transportation finance business for about $1 billion, Bloomberg News reported on Wednesday, citing people familiar with the matter. The bank has been lining up for potential buyers of the business, which could attract private equity firms and private credit players, as per the report. No final decision has been made in regards to the business — which has about $11 billion in assets — and BMO might opt to hold onto it, Bloomberg said. Bank of Montreal declined comment on the report. The bank's transportation finance arm provides loans and leases, which are tailored primarily for trucks and trailers across North America. It also serves inventory financing and fleet cost management needs for the sector. Bank of Montreal had acquired General Electric Capital Corporation's transportation finance business about a decade ago, to boost its commercial banking at the time. The bank has made several key executive changes in the recent past to foster growth and expand its footprint in the United States.
Globe and Mail
6 days ago
- Business
- Globe and Mail
What industry consolidation can teach advisors about their own succession planning and firm value
Succession planning has long been the Achilles' heel of the wealth management industry. Some studies suggest that 80 to 90 per cent of advisors have no formal succession plan – a startling gap for a profession built on planning for others. At the same time, the industry is experiencing an unprecedented wave of consolidation. The result? A perfect storm of capital, urgency and opportunity. Two recent transactions capture this moment: Bank of Montreal's acquisition of Burgundy Asset Management Ltd. and Sagard Private Equity Canada's take-private of Lorne Park Capital Partners Inc. (also known as Bellwether Investment Management). These are more than headline-grabbing deals. They reflect a profound shift in how value is being defined and who's best positioned to capture it. A feeding frenzy is underway in the Canadian wealth management space. Banks, independent dealers, private equity firms and consolidators are seeking exposure to high-margin, recurring, fee-based revenue. The demographics are on their side: more than half of Canadian financial advisors are over the age of 50, with succession planning looming large. But while capital is abundant, high-quality platforms are not. That's why deals like Burgundy and Lorne Park matter. They're not just M&A transactions – they're signals to the rest of the market about what gets rewarded. In Burgundy's case, the co-founders were remarkably candid. In an email to clients shortly after the sale announcement, Tony Arrell explained that their original intention had been to transition ownership internally. However, by the time they considered it seriously, the opportunity had passed: employees lacked the capital to fund a meaningful buyout, and the leadership was unwilling to dilute their long-held value-investing principles to attract outside financing. In the end, BMO offered what internal succession could not: a culturally aligned partner, liquidity through publicly traded stock, and a structure that preserved Burgundy's investment autonomy while ensuring long-term continuity for clients and staff. It's a story many founders know too well: they want to keep ownership 'in the family,' but the financial, operational and leadership handoff is rarely achievable without compromise. For firms that don't have Burgundy's scale or brand equity, it's even harder. Ask most advisors what their practice is worth and you'll hear a familiar refrain: two to three times trailing revenue. The widely accepted industry rule of thumb implies a 2- to 3-per-cent price relative to assets under management (AUM), assuming a 1 per cent average fee rate. But here's the catch. Burgundy, a firm with $27-billion in AUM, just traded at 2.3 per cent, while Lorne Park, with $3.9-billion in AUM, traded at 3.9 per cent of AUM. These are full-firm transactions with sophisticated infrastructure and recognizable brands. So, why would a large wealth management firm pay an advisor 3 per cent of AUM to buy their book when other firms are only trading at 2 to 3 per cent? The truth is, they might. But it won't be because of an advisor's revenue multiple – it will be because of earnings before interest, tax, depreciation and amortization (EBITDA). Buyers are focused on what your business earns, not just what it brings in. If your practice generates strong margins, recurring cash flow, and has low advisor/key-person risk, it might justify a premium. If it doesn't, even 2 per cent of AUM may be a stretch. Firms with strong EBITDA margins, scalable operations and sticky client relationships are trading at 10 to 15 times EBITDA even if the AUM multiple looks modest. But for those running a lifestyle practice, in which profits are drawn down annually and the business revolves around a single advisor, then even a two-times revenue multiple may be generous. If you're an advisor or firm principal considering the next chapter – be it succession, retirement or recapitalization – now is the time to understand how buyers are evaluating value. Multiples are a starting point, not a finish line. The Canadian wealth industry is entering its next phase. Buyers are sitting on the sidelines, ready to act. However, value creation and capture belong to those who look beyond the headline metrics and focus on building enduring, cash-generating businesses. The lesson from Burgundy is simple. Succession is not optional; it's a matter of timing. The difference is whether you drive the process or respond to it. Joe Millott is a partner at Fort Capital Partners, an independent investment bank that specializes in wealth and asset management mergers and acquisitions, with offices in Vancouver, Calgary and Toronto.
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Bank of Montreal Announces Pre-Stabilisation for EUR 1 Billion Notes
Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Bank Of Montreal ( (TSE:BMO)) has issued an update. Bank of Montreal's London Branch has announced a pre-stabilisation notice for the issuance of EUR 1,000,000,000 Callable Fixed-to-Floating rate notes due January 2032. The stabilisation period is set to begin on July 2, 2025, and may last up to 30 days. The bank's stabilising manager may engage in market activities to support the securities' price, although such actions are not guaranteed. This move reflects the bank's strategic efforts to manage market conditions and investor expectations in the European financial markets. More about Bank Of Montreal Bank of Montreal is a major financial institution operating in the banking industry, providing a wide range of financial services and products. It focuses on serving both individual and corporate clients with offerings that include personal banking, commercial banking, wealth management, and investment services. Find detailed analytics on BMO stock on TipRanks' Stock Analysis page.
