BMO Financial Group and Royal Bank of Canada have agreed to sell their jointly-owned payment processor, Moneris Solutions Corporation, to private equity firm Francisco Partners for approximately $2.0 billion in cash. BMO’s 50% share of the proceeds is valued at roughly $1.0 billion. The transaction includes new exclusive long-term referral arrangements between the banks and Moneris. BMO expects to record an after-tax gain of approximately $600 million ($620 million pre-tax) in Non-Interest Revenue upon closing, which is projected to improve its common equity Tier 1 ratio by about 15 basis points. The deal is expected to close by the end of the first quarter of fiscal year 2027, subject to regulatory approvals. BMO Financial Group operates as a major diversified financial services provider offering personal and commercial banking, wealth management, global markets, and investment banking products across Canada, the United States, and select international markets.