OH-based Vantiv has inked an agreement to acquire Moneris Solutions from Moneris Solutions Corporation (Moneris) for $425 million. Schaumburg, IL-based Moneris USA is the U.S. subsidiary of Moneris, which is a joint investment between BMO Financial Group and Royal Bank of Canada (RBC).
Upon closing of the transaction, Vantiv will begin servicing Moneris USA’s merchants and other business relationships, including its relationship with BMO Harris Bank, which operates approximately 600 branches in the United States. Moneris USA processed approximately $12 billion in U.S. transaction volume in 2015.
Vantiv, the nation’s second largest payment processor, serves more than 800,000 merchant locations and 1,400 financial institutions.
Moneris says the acquisition will enable Moneris USA to continue its successful path and provide merchants the high-level of service they’ve come to expect while leveraging Vantiv’s scale and omni-channel payments capabilities.
The transaction is expected to close in the fourth quarter of 2016, subject to required U.S. antitrust clearance and other customary closing conditions. Vantiv will fund the transaction with cash-on-hand. Vantiv expects the acquisition to have an immaterial impact on its 2016 results and be accretive to its pro forma adjusted net income in 2017.
Credit Suisse acted as lead financial advisor and Morgan Stanley & Co. LLC and BofA Merrill Lynch also acted as financial advisors to Vantiv; Benesch served as its legal advisor. BMO Capital Markets and RBC Capital Markets LLC were financial advisors to Moneris. Sullivan & Cromwell acted as legal advisor for Moneris.
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