Marshall & Ilsley Corp. said that it spent $2.3 million last quarter preparing to spin off its Metavante Corp., and that the effort has cost $3.6 million to date.
The Milwaukee banking company disclosed the figures Wednesday in its second-quarter earnings report.
Metavante's revenue rose 6% from the same quarter last year, to $396 million. Net income for the unit rose 6.2%, to $42.9 million. Excluding its share of the spinoff costs, Metavante earned $43.8 million.
M&I announced in April that it would sell 25% of Metavante to the private-equity company Warburg Pincus LLC and distribute the rest to M&I shareholders. The transaction is expected to close next quarter and to bring in $1.67 billion.
Gregory A. Smith, M&I's chief financial officer, said that the spinoff is on track. A registration statement was filed with the Securities and Exchange Commission in May, and the banking company has filed the appropriate paperwork with the Internal Revenue Service, the Federal Reserve banks and the National Association of Securities Dealers. "We continue to make good progress on all of our most important timelines," he said.
