Philadelphia-based mortgage insurer Radian Group (RDN) said Tuesday that it has completed the acquisition of loan review firm Clayton Holdings LLC.
As previously disclosed, Radian planned to sell 15.5 million shares of common stock and $200 million in bonds to help pay for its first major acquisition in seven year.
“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,” Radian’s Chief Executive Officer S.A. Ibrahim said in a statement. “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.”
Headquartered in Shelton, Connecticut, Clayton, which in FY 2013 had annual revenue of $135 million and net income of $9.1 million, is now a Radian subsidiary, serving as a complement to its existing mortgage-related products and services.
Radian gained less than 1% Wednesday to $14.79 in New York and has gained nearly 5% this year, and more the than 27% in the last 52 weeks. At the $15 price-level, the company has a market value of about $2.9 billion.