Radian Group Inc., a Philadelphia-based company specializing in mortgage and real estate services, is selling Clayton Services LLC to Covius Holdings, a provider of technology-enabled solutions to the financial services industry.
Clayton Services, acquired by Radian as part of Clayton Holdings, provides loan acquisition, RMBS securitization and distressed asset reviews and servicer and loan surveillance services. The sale is consistent with Radian’s strategic focus on its core mortgage and real estate businesses and reflects the repositioning of its services segment initiated in 2017. Terms of the transaction were not disclosed.
Radian does not expect the sale of Clayton Services to have a material net impact on its future financial results but does anticipate that for the fourth quarter of 2019 it will record a pre-tax, non-cash impairment of goodwill and other acquired intangible assets of approximately $18.5 million related to this transaction without reference to other factors affecting its fourth quarter results.
In addition to its core Mortgage Insurance and Risk Services businesses, Radian will maintain all of the services and products offered through Green River Capital, a provider of REO asset management and single-family rental services; Red Bell Real Estate, a company using data and analytics combined with technology to deliver real estate brokerage services and a broad array of residential real estate valuation products; Five Bridges Advisors, a developer of proprietary software, data analytics and predictive models leveraging artificial intelligence, machine learning and traditional econometric techniques; Radian Title Insurance, a national title underwriter, and Radian Settlement Services, a national centralized title agency and settlement services provider. These companies remain important contributors to Radian’s growing Real Estate Services business.
Approximately 550 employees supporting Clayton Services will join the Covius team.