Private equity loses to Vantiv in Moneris U.S. auction: sources

Vantiv Inc has beat out private equity to emerge a winner in the Moneris U.S. auction, three sources familiar with the transaction said.

Blackstone Group and Genstar Capital made final bids for Moneris U.S., Buyouts reported earlier this month. North American Bancard also made an offer, one of the sources, a GP, said Tuesday.

“Moneris went strategic,” the GP said.

Vantiv, Cincinnati, provides payment-processing services for merchants and financial institutions. In 2014, Vantiv acquired Mercury Payment Systems Inc from Silver Lake for $1.65 billion. Vantiv could not be reached for comment.

RBC and Bank of Montreal established Moneris Solutions Inc 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. Moneris employs more than 1,300 people.

Moneris put its U.S. business up for sale in May, Buyouts reported. RBC and BMO advised on the auction of Moneris U.S., the story said.

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

Press reports said Moneris U.S. could fetch as much as $600 million. Sources told Buyouts in July that Moneris U.S. would likely sell for less, around $450 million.

Moneris, RBC, Bank of Montreal, Blackstone, Genstar and North American Bancard could not be reached for comment.

Action Item: Contact Vantiv: ir@vantiv.com

A man uses an iPhone 7 smartphone to demonstrate the mobile payment service Apple Pay at a cafe in Moscow on October 3, 2016. Photo courtesy Reuters/Maxim Zmeyev