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Investing.com -- 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.