Payment processor Moneris to sell U.S. business: sources

Moneris Solutions Inc has put its U.S. business up for sale, three sources familiar with the situation said.

The auction began last week, one of the sources said. Who is advising on the auction is unclear. Sources pointed to Royal Bank of Canada as the likely banker.

RBC and Bank of Montreal established Moneris as a joint venture in December 2000. Toronto-based Moneris processes more than 3 billion credit and debit card transactions a year for more than 350,000 merchant locations across North America, the company’s website said. Moneris employs more than 1,300 people. UPDATE: A third source said RBC and BMO are advising on the auction.

Moneris’s U.S. operations are based out of Schaumburg, Illinois. They were originally known as Harris Bank Merchant Services/the Charge-It-System. The value of the U.S. operations was unclear.

Private equity has been a frequent investor in the payments space.

One of the larger payment-processing deals involved the much larger TransFirst, which handles about $48 billion in annual transaction volume for more than 200,000 merchants and financial institutions.

In April, Vista Equity Partners closed its $2.35 billion sale of TransFirst to TSYS after owning the company for less than two years. Welsh, Carson, Anderson & Stowe had owned TransFirst for seven years before selling it to Vista in 2014.

Other PE firms that have invested in the payments space include GTCRLindsay Goldberg and Hellman & Friedman.

Executives for Moneris, RBC and BMO could not immediately be reached for comment.

Action Item: Contact Moneris: customer.relations@moneris.com

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