‘Sponsored’ Spin-Off Eyed for Metavante

MILWAUKEE – Marshall & Ilsley is nearing a deal with private equity firm Warburg Pincus to spin-off its Metavante back-office services provider and take the unit public in a so-called ‘sponsored spin’. Under the deal, Marshall & Ilsley, the regional bank holding company, would spin off Metavante to its shareholders in a tax-free transaction, with Warburg Pincus paying cash for a minority state in the newly public firm. Metavante a offers check processing, electronic payments and ATM services through a conglomeration of services providers it accumulated over the past five years, including NYCE, Advanced Financial Services, NuEdge Systems, Response Data and Kirchman Corp. It is also owner of one of four competing electronic image/check networks, known as Endpoint Exchange. The deal is expected to be announced in the next few days.