MGIC to acquire Radian for $4.9 billion in stock
- Share via
MGIC Investment Corp., the largest U.S. mortgage insurer, will buy No. 3 Radian Group Inc. for $4.9 billion in stock as the market for protection against home-loan defaults stagnates.
Milwaukee-based MGIC agreed to exchange 0.9658 of a share of its stock for each share of Philadelphia-based Radian, paying no premium to Radian’s $61.28 closing share price Friday, the two companies said.
The new company, assuming control of about a third of the country’s mortgage insurance market, plans to cut almost a quarter of its combined costs as second, or “piggyback,” home loans reduce the need for insurance on mortgages with low down payments.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
