UWM Holdings To Acquire Two Harbors Investment In $1.3B Deal - How Much Of The Combined Company Will UWM Shareholders Own?

The acquisition is expected to nearly double UWM’s MSR book to about $400 billion.

UWM Holdings Corp. (UWMC) is set to acquire Two Harbors Investment Corp. (TWO) in a $1.3 billion all-stock deal, which is expected to nearly double UWM’s existing mortgage servicing rights (MSR) book to about $400 billion and create a significant source of recurring revenue.

Following the transaction, UWM shareholders will own about 87% of the combined company, with Two Harbors Investment shareholders holding roughly 13%. 

Under the agreement, UWM will acquire Two Harbors Investment at a fixed exchange ratio of 2.3328 shares of UWMC stock for each share of TWO, valuing the latter at $11.94 per share.

At the time of writing, UMMC stock was down 3.7% while TWO shares surged nearly 10%.

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