UWMC Holdings Corporation ("UWMC") has announced a strategic acquisition of Two Harbors Investment Corp. ("Two") in an all-stock transaction valued at $1.3 billion. This acquisition is expected to significantly enhance UWMC's long-term vision, profitability, and cash flow. The merger will result in a stronger balance sheet, streamlined operations, and elevated client success.
The transaction is anticipated to provide UWMC with expanded servicing expertise and scale, nearly doubling its existing mortgage servicing rights (MSR) portfolio to approximately $400 billion, leading to substantial recurring revenues. Furthermore, the acquisition is expected to generate approximately $150 million of annual cost and revenue synergies, driving meaningful earnings accretion.
Following the acquisition, the combined company is projected to service over $400 billion in MSR, ranking eighth among servicers nationwide. UWMC's leading originations business, combined with Two's servicing expertise, will position the merged entity as a world-class complete mortgage company.
The terms of the agreement stipulate that Two stockholders will receive a fixed exchange ratio of 2.3328 shares of UWMC Class A common stock for each share of Two common stock, representing a value of $11.94 per share based on UWMC's closing price as of December 16, 2025. Upon completion of the transaction, UWMC shareholders will own approximately 87% of the combined company on a pro forma fully diluted basis, while Two shareholders will own approximately 13%.
The transaction, which is expected to close in the second quarter of 2026, is subject to approval by Two's stockholders and customary regulatory approvals.
Following these announcements, the company's shares moved -5.37%, and are now trading at a price of $4.845. Check out the company's full 8-K submission here.
