(Bloomberg) — Radian Group Inc., the largest U.S. mortgage insurer, said it will purchase Clayton Holdings for $305 million to expand outsourcing services for the home-lending industry.
Radian will issue shares and bonds to fund the purchase, the Philadelphia-based company said today in a statement on its website. The $305 million sum includes the repayment of Clayton's outstanding debt, according to the statement.
To help pay for the deal, Radian plans to sell 15.5 million shares of common stock and $200 million in bonds, the insurer said today in a separate statement. Goldman Sachs Group Inc. is managing the sale.
Radian declined 1.8% today to $14.05 in New York and has slipped less than 1 percent this year. At that price, shares being sold have a value of about $218 million.
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