Marshall & Ilsley to split off Metavante in investment agreement with Warburg Pincus

By Lisa Kerner

Charlotte, N.C., April 3 - Marshall & Ilsley Corp. said it plans to split Marshall & Ilsley and Metavante Corp. into independent public companies as the result of an investment agreement with equity investor Warburg Pincus, a move unanimously approved by the company's board of directors.

The investor agreed to invest $625 million to acquire an equity stake of 25% in Metavante, with Marshall & Ilsley shareholders owning the remaining 75%, a company news release stated.

Approximately $1.75 billion of new Metavante debt will be arranged by J.P. Morgan Securities Inc. and Morgan Stanley as part of the planned split.

Marshall & Ilsley shareholders will receive one share of Marshall & Ilsley stock and one share of Metavante stock for every three shares of Marshall & Ilsley stock held.

The transaction is expected to close in the fourth quarter of 2007 and is subject to shareholder approval.

Frank Martire will remain president and chief executive officer of Metavante, with Mike Hayford continuing as senior executive vice president and chief operating officer.

"This transaction will create two well-positioned public companies and will provide substantial benefits to the shareholders of both companies," Marshall & Ilsley chairman and chief executive officer Dennis Kuester said in the release.

Marshall & Ilsley is a diversified financial services corporation based in Milwaukee, Wis.

Metavante delivers banking and payments technologies to financial services firms and businesses.

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