By Lisa Kerner
Charlotte, N.C., Feb. 6 - MGIC Investment Corp. and Radian Group Inc. agreed to merge and form a new mortgage and credit risk insurance company called MGIC Radian Financial Group Inc., according to a news release.
Under the agreement, each share of Radian common stock will be exchanged for 0.9658 shares of MGIC common stock based on Feb. 5 closing prices.
Each company's board of directors approved the transaction, which is expected to close in the fourth quarter of 2007.
MGIC Investment's chairman and chief executive officer Curt S. Culver will hold the same positions at the new company. Radian Group's chief executive officer S.A. Ibrahim will serve as president and chief operating officer of MGIC Radian.
"Our companies have similar goals and shared values regarding increasing shareholder value," Culver said in the release.
"We will take a deliberate, methodical approach to integrating our companies, making certain that customers continue to receive high-quality service and that our shareholders realize the potential benefits of this merger."
MGIC Investment is a holding company and a private mortgage insurance provider based in Milwaukee.
Radian Group is a credit risk management company based in Philadelphia.
| Acquirer: | MGIC Investment Corp.
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| Acquirer: | Radian Group Inc.
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| Payment per share: | 0.9658 shares of MGIC for each share of Radian
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| Announcement date: | Feb. 6
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| Expected closing: | Fourth quarter of 2007
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| Stock price for MGIC: | NYSE: MTG; $62.93 on Feb. 5
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| Stock price for Radian: | NYSE: RDN; $60.84 on Feb. 5
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