Vantiv, a provider of payment processing services and related technology products, has agreed to acquire Moneris USA from Canada-based Moneris Solutions Corp. for $425 million, subject to certain adjustments.

Illinois-based Moneris USA is the U.S. subsidiary of Moneris, which is a joint investment between BMO Financial Group and Royal Bank of Canada, according to a press release about the announcement.

Upon closing the transaction, Vantiv will begin servicing Moneris USA merchants and other business relationships, including its relationship with BMO Harris Bank, which operates approximately 600 branches in the U.S. Moneris USA processed approximately $12 billion in U.S. transaction volume in 2015.

"Acquiring Moneris USA will further accelerate Vantiv's growth in key high-growth channels," said Charles Drucker, president and chief executive officer of Vantiv. "We look forward to serving their technology and bank partners with our deep payments expertise and strong customer service."

Vantiv, the nation's second largest payment processor, serves more than 800,000 merchant locations and 1,400 financial institutions.

"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 omnichannel payments capabilities," said Angela Brown, president and chief executive officer of Moneris. "Working together with Vantiv, Moneris will continue to support our mutual cross-border customers with a focus on innovation and service."

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.