Mortgage insurer Radian Group Inc., of Philadelphia, said it will acquire Connecticut-based Clayton Holdings in a deal Radian valued at $305 million, including Clayton debt.

In 2013, Clayton, which provides outsourcing services to the mortgage industry, had annual revenue of $135 million and net income of $9.1 million, Radian said.

Clayton, which employs 700, will become a subsidiary of Radian. The company will issue new debt and shares to finance the acquisition, it said. The deal is expected to close in the summer, Radian said.

- Reid Kanaley