Latest news with #Moneris
Economic Times
32 minutes ago
- Business
- Economic Times
RBC and BMO explore $2 billion sale of Canadian payments venture Moneris
Synopsis Royal Bank of Canada and Bank of Montreal are exploring sale of payments joint venture Moneris, valued at approximately $2 billion. The payment processor handles one-third of Canadian business transactions across 325,000 merchant locations with $700 million annual revenue Reuters Moneris payment processing terminal representing the $2 billion Canadian payments venture jointly owned by Royal Bank of Canada and Bank of Montreal, which handles one-third of business transactions across 325,000 merchant locations nationwide Royal Bank of Canada and Bank of Montreal have initiated the potential sale of their joint payments venture Moneris, with sources indicating the transaction could value the business at approximately $2 represents one of Canada's largest payment processors, handling one in every three business transactions nationwide. The company was established in 2000 as a joint venture between RBC and BMO, providing digital, mobile, and in-store payment systems for approximately 325,000 merchant locations across Canada. Also read: Economist PM Mark Carney's big shock - Canada loses 41,000 jobs in July as youth unemployment hits 14-year The banks are in early stages of exploring a potential Moneris sale, according to four people familiar with the matter who requested anonymity due to the private nature of discussions. Investment banking firms advising on the potential transaction include boutique firm PJT Partners, along with RBC Capital Markets and BMO Capital Markets. Sources estimate Moneris could achieve a $2 billion valuation, or slightly below that threshold, based on the company's annual revenue generation of nearly $700 million. The revenue-based valuation reflects standard industry multiples for payment processing businesses. However, completion of a sale remains uncertain, with sources indicating the bank owners could ultimately decide to retain some or all of the Moneris business operations. The potential transaction represents one of the larger Canadian fintech deals under consideration. The potential Moneris sale aligns with broader trends in the North American banking sector, where financial institutions have increasingly divested payment processing operations. Banks have found the pace of digitization requires regular capital investments to maintain competitive positioning in the payments processing companies have emerged as willing acquirers, seeking to expand geographic reach and enhance product offerings through mergers and acquisitions. Private equity firms also represent active buyers, attracted by the recurring fee revenue streams that characterize payments industry activity includes TD Bank's announcement last month of a strategic partnership with Fiserv regarding its Canadian merchant payments operations, demonstrating continued consolidation in the read: Canada's economy flexes while everyone freaks about tariffs, so no rate cut for you for now! BMO, Moneris, and PJT Partners declined to provide comments regarding the potential sale discussions. RBC did not respond to requests for comment about the Canadian payments processing market has experienced significant growth driven by increased digital adoption and electronic transaction volumes. Moneris's market position, processing approximately 33 per cent of Canadian business transactions, positions the company as a valuable asset for potential processing businesses typically generate stable revenue through transaction-based fees, making them attractive targets for investors seeking predictable cash flows. The recurring nature of merchant relationships provides additional stability for payment processors like Moneris.
Time of India
an hour ago
- Business
- Time of India
RBC and BMO explore $2 billion sale of Canadian payments venture Moneris
Royal Bank of Canada and Bank of Montreal have initiated the potential sale of their joint payments venture Moneris, with sources indicating the transaction could value the business at approximately $2 billion. Moneris represents one of Canada's largest payment processors, handling one in every three business transactions nationwide. The company was established in 2000 as a joint venture between RBC and BMO, providing digital, mobile, and in-store payment systems for approximately 325,000 merchant locations across Canada. Also read: Economist PM Mark Carney's big shock - Canada loses 41,000 jobs in July as youth unemployment hits 14-year The banks are in early stages of exploring a potential Moneris sale , according to four people familiar with the matter who requested anonymity due to the private nature of discussions. Investment banking firms advising on the potential transaction include boutique firm PJT Partners, along with RBC Capital Markets and BMO Capital Markets. Moneris valuation based on revenue performance Sources estimate Moneris could achieve a $2 billion valuation, or slightly below that threshold, based on the company's annual revenue generation of nearly $700 million. The revenue-based valuation reflects standard industry multiples for payment processing businesses. Live Events However, completion of a sale remains uncertain, with sources indicating the bank owners could ultimately decide to retain some or all of the Moneris business operations. The potential transaction represents one of the larger Canadian fintech deals under consideration. Banking industry payments divestiture trend The potential Moneris sale aligns with broader trends in the North American banking sector, where financial institutions have increasingly divested payment processing operations. Banks have found the pace of digitization requires regular capital investments to maintain competitive positioning in the payments landscape. Payment processing companies have emerged as willing acquirers, seeking to expand geographic reach and enhance product offerings through mergers and acquisitions. Private equity firms also represent active buyers, attracted by the recurring fee revenue streams that characterize payments businesses. Recent industry activity includes TD Bank's announcement last month of a strategic partnership with Fiserv regarding its Canadian merchant payments operations, demonstrating continued consolidation in the sector. Also read: Canada's economy flexes while everyone freaks about tariffs, so no rate cut for you for now! Market response and industry context BMO, Moneris, and PJT Partners declined to provide comments regarding the potential sale discussions. RBC did not respond to requests for comment about the transaction. The Canadian payments processing market has experienced significant growth driven by increased digital adoption and electronic transaction volumes. Moneris's market position, processing approximately 33 per cent of Canadian business transactions, positions the company as a valuable asset for potential acquirers. Payment processing businesses typically generate stable revenue through transaction-based fees, making them attractive targets for investors seeking predictable cash flows. The recurring nature of merchant relationships provides additional stability for payment processors like Moneris.
Finextra
2 days ago
- Business
- Finextra
RBC and BMO explore $2bn sale of Moneris payments business
RBC and BMO explore $2bn sale of Moneris payments business - Reuters Royal Bank of Canada and Bank of Montreal are looking to offload payments processing joint venture Moneris for up to $2 billion, according to Reuters. 0 Editorial This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.
Yahoo
2 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
Globe and Mail
3 days ago
- Business
- Globe and Mail
RBC, BMO planning $2-billion sale of Moneris, sources say
Royal Bank of Canada RY-T and Bank of Montreal BMO-T have placed their Canadian payments joint venture up for sale, in a deal that may value the business as highly as US$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 US$700-million in annual revenue, so the sources estimated this could equate to a US$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.
