Shares of Two Harbors Investment Corp (NYSE:TWO) jumped 6.2% in premarket trading on Wednesday after UWM Holdings Corporation (NYSE:UWMC) revealed plans to acquire the mortgage servicing rights–focused REIT in an all-stock deal valued at approximately $1.3 billion.
Under the agreement, Two Harbors shareholders will receive 2.3328 shares of UWMC Class A common stock for each share of Two Harbors they own. Based on UWMC’s closing price on December 16, 2025, the consideration values Two Harbors at $11.94 per share, representing a 21% premium to the company’s 30-day volume-weighted average price.
The transaction will nearly double UWM’s mortgage servicing rights portfolio to roughly $400 billion, positioning the combined group as the eighth-largest mortgage servicer in the United States. UWM expects the deal to generate about $150 million in annual cost and revenue synergies once fully integrated.
“This transaction is a true win for both stockholders and our mortgage broker partners, which is why it makes so much sense,” said Mat Ishbia, Chairman, President and CEO of UWM. “The timing of doubling our servicing book as we bring servicing in-house is the perfect alignment, allowing us to deliver meaningful upside to stockholders and leverage increased cash flow to invest deeper into the broker network.”
In contrast, UWM Holdings shares fell 5.7% in premarket trading following the announcement. After the transaction closes, UWM shareholders are expected to own approximately 87% of the combined company, with Two Harbors shareholders holding the remaining 13%.
The acquisition is expected to be completed in the second quarter of 2026, subject to approval by Two Harbors shareholders as well as customary regulatory clearances.