UWM Holdings to Acquire Two Harbors in $1.3B All-Stock Merger to Create Mortgage Servicing Giant

Group 1 - UWM Holdings Corporation announced a definitive merger agreement to acquire Two Harbors Investment Corp for approximately $1.3 billion in an all-stock transaction, utilizing a fixed exchange ratio of 2.3328x [1] - The acquisition aims to enhance UWM's servicing capabilities by adding a high-quality mortgage servicing rights (MSR) portfolio with an unpaid principal balance of $176 billion, nearly doubling UWM's existing book to around $400 billion, positioning the combined entity as the eighth-largest mortgage servicer in the US [2] - The merger is expected to be highly accretive, with potential annual cost and revenue synergies of approximately $150 million, leveraging Two Harbors' capital markets expertise to improve financing, hedging, and secondary market activities [3] Group 2 - UWM Holdings Corporation is engaged in the origination, sale, and servicing of residential mortgage lending in the US, indicating its focus on the mortgage sector [4]