Bank of Montreal and Royal Bank of Canada agreed to sell Moneris Solutions to Francisco Partners for approximately $2 billion.
BMO currently holds a 50% stake in the payment processor.
The bank expects to record an after-tax gain of about $600 million upon closing.
This transaction will improve BMO’s Common Equity Tier 1 capital ratio by approximately 15 basis points.
Both banks will maintain commercial relationships with Moneris through new long-term, exclusive referral arrangements.
The deal is expected to close by the end of the first quarter of fiscal year 2027, pending regulatory approvals.