A prominent payment processing company that handles about one-third of all payment transactions in Canada is set to be acquired by an American private equity firm. The Royal Bank of Canada and Bank of Montreal revealed their plans to sell Moneris, a leading commerce solutions provider in Canada, to Francisco Partners for $2 billion. Following the announcement of the deal, both RBC and BMO experienced a positive response in the stock market, with RBC expected to gain approximately $475 million and BMO $600 million from the sale.
Concerns have been raised by some industry analysts regarding the potential negative impact on Canada’s digital sovereignty due to the ongoing trade tensions with the United States. Digital sovereignty broadly refers to a country’s or individual’s ability to maintain control over their digital assets. Minister Evan Solomon emphasized the need for Canada to establish a sovereign digital economy that is independent from external influence.
In a joint statement, numerous experts and academics urged Prime Minister Mark Carney to safeguard Canada’s digital sovereignty against external pressures. Sharon Polsky, President of the Privacy and Access Council of Canada, voiced concerns about the implications of the deal, highlighting the potential exposure of Canadians’ data to foreign entities, including law enforcement agencies.
Moneris is a key player in Canada, serving over 325,000 points of commerce and processing more than five billion transactions annually. Polsky cautioned that the acquisition could enable foreign governments to access Canadians’ data, posing privacy risks. The transaction could also potentially impact trade negotiations between Canada and the U.S., as highlighted by Polsky and Independent Canadian Senator Colin Deacon.
Both BMO and RBC refrained from elaborating further on the deal beyond their initial press releases, emphasizing that Moneris’ commitment to Canadian businesses will remain unchanged under new ownership. Polsky emphasized the inadequacy of current privacy legislation in protecting Canadians’ digital rights, pointing out the potential conflicts between Canadian and American data laws.
The Canadian government has introduced Bill C-36, the Protecting Privacy and Consumer Data Act, to enhance the private sector privacy framework and establish privacy as a fundamental right. The bill includes provisions for privacy impact assessments and restrictions on transferring personal data outside of Canada. Despite these efforts, Polsky criticized the legislation for not adequately addressing data sovereignty concerns. The sale of Moneris is pending regulatory approvals and is expected to conclude by the end of the fiscal first quarter in 2027, leaving Canada trailing in digital sovereignty protection efforts.