Radian Completes Acquisition of Clayton Holdings
PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) announced today it has completed the acquisition of Clayton Holdings LLC. As previously disclosed, Radian Group paid aggregate cash consideration of $305 million, subject to customary purchase price adjustments, to purchase all of the outstanding equity interests in Clayton and to repay Clayton's outstanding debt.
“In addition to joining a market leader in the mortgage insurance industry that has a clear vision of the evolving needs of the U.S. housing market, we now have the opportunity to bring our mortgage solutions to Radian’s established and growing customer base”
“Today we welcome Clayton Holdings to our family. The mortgage solutions and capabilities they bring will help diversify our revenue stream and expand our core competencies, positioning Radian for new opportunities as the U.S. housing market evolves,” said Radian’s Chief Executive Officer S.A. Ibrahim. “The Clayton acquisition builds on Radian's strong heritage and experience in delivering innovative products and solutions that allow our customers to achieve their goals.”
Clayton has built its success providing outsourced mortgage solutions and is widely recognized as a leader in its industry. The acquisition will complement Radian’s existing mortgage-related products and services. This transaction is consistent with Radian’s growth and diversification strategy to pursue alternatives for providing mortgage risk-related products and services to the mortgage finance market.
"In addition to joining a market leader in the mortgage insurance industry that has a clear vision of the evolving needs of the U.S. housing market, we now have the opportunity to bring our mortgage solutions to Radian’s established and growing customer base,” said Clayton’s Chief Executive Officer Paul T. Bossidy.
Headquartered in Shelton, Connecticut, Clayton employs approximately 700 people. Clayton Chief Executive Officer Paul Bossidy, President and Chief Operating Officer Joseph D’Urso and the Clayton management team have built a strong, market-leading franchise in each of the mortgage services areas where they participate. As part of Radian, they will focus on serving their clients and growing their business, as well as exploring additional opportunities to offer new and existing services to Radian’s established customer base.
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.
Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements. These forward-looking statements, which may include without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2013, Item 1A of Part II of our Quarterly Report on Form 10-Q filed in 2014, and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.