Two of Canada’s largest banks agreed to sell payments firm Moneris Solutions Corp. to Francisco Partners for C$2 billion ($1.4 billion) in cash.

Royal Bank of Canada and Bank of Montreal will each record a large gain on the sale of the business, which provides point-of-sale machines and other payment services to thousands of businesses in Canada. The two Toronto-based banks will equally share the proceeds, according to a statement.

RBC expects to record an after-tax gain of C$475 million upon the deal closing and said the transaction will have a “marginally positive” impact on its regulatory capital ratio. BMO expects to record an after-tax gain of about C$600 million and said it will improve its regulatory capital ratio by about 15 basis points.

The transaction is expected to close by the end of the banks’ fiscal first quarter in 2027, which is January.

The two banks “will enter into new exclusive, long-term customer referral arrangements with Moneris,” RBC said in the statement. “With access to Francisco Partners’ global platform, Moneris is expected to accelerate modernization and growth across small, medium and enterprise businesses in the Canadian marketplace.”

The transaction follows similar moves by other banks to divest or outsource payments-processing operations. Last year, Toronto-Dominion Bank agreed to sell part of its merchant processing business — about 3,400 contracts covering 30,000 locations — to Milwaukee-based payments provider Fiserv Inc. as part of a larger agreement to use Fiserv’s technology.

Moneris helps businesses accept and manage payments at over 325,000 points of commerce, accounting for one-third of transactions in Canada, the company and Francisco Partners said in their statement. As part of the transaction, Jeff Sloan, former president and chief executive officer of Global Payments Inc., will join Moneris as chairman, they said.

“This next chapter will enable Moneris to build on that strong foundation while accelerating its strategy in a rapidly evolving payments landscape,” Sharon Haward-Laird, BMO’s group head of Canadian commercial banking and North American integrated solutions, said in a separate statement.