Triad Guaranty (TGIC) Agrees to Sell IT and Operating Platform to Essent Guaranty
Triad Guaranty Inc. (Nasdaq: TGIC) today announced that it has reached a definitive agreement to sell its information technology and operating platform to Essent Guaranty, Inc. ("Essent").
Under the terms of the asset purchase agreement, Essent will acquire all of Triad's proprietary mortgage insurance software and substantially all of the supporting hardware, as well as certain other assets, in exchange for up to $30 million in cash and the assumption by Essent of certain software contractual obligations. $15 million was paid up front, with the remaining $15 million contingent on Essent writing a certain amount of insurance business in the ensuing years.
The transaction is expected to close in the fourth calendar quarter of 2009.
Triad Guaranty Insurance Corporation is a nationwide mortgage insurer pursuing a voluntary run-off of its existing in-force book of business.
Essent Guaranty is preparing to offer private mortgage insurance and reinsurance coverage with respect to United States risks.
Under the terms of the asset purchase agreement, Essent will acquire all of Triad's proprietary mortgage insurance software and substantially all of the supporting hardware, as well as certain other assets, in exchange for up to $30 million in cash and the assumption by Essent of certain software contractual obligations. $15 million was paid up front, with the remaining $15 million contingent on Essent writing a certain amount of insurance business in the ensuing years.
The transaction is expected to close in the fourth calendar quarter of 2009.
Triad Guaranty Insurance Corporation is a nationwide mortgage insurer pursuing a voluntary run-off of its existing in-force book of business.
Essent Guaranty is preparing to offer private mortgage insurance and reinsurance coverage with respect to United States risks.
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