UWM Holdings Corporation announces the strategic acquisition of Two Harbors Investment Corp.
The acquisition aims to expand UWM's servicing portfolio and capabilities, enhancing profitability and resilience.
This all-stock transaction is valued at $1.3 billion and is expected to unlock substantial opportunities for increased profitability and cash flow.
Transaction Details
UWMC will acquire TWO in an all-stock transaction for $1.3 billion in equity value based on a fixed exchange ratio of 2.3328x.
Strategic Advantages
The acquisition will provide UWM with expanded servicing expertise and scale, a high-quality MSR portfolio, and approximately $150 million of annual cost and revenue synergies.
Financial Impact
The combined company is expected to service over $400 billion in MSR, ranking number 8 among servicers nationwide, and UWM shareholders will own approximately 87% of the combined company.
- The acquisition strengthens UWM's long-term vision, creating opportunities for increased profitability and cash flow.
- It aligns two highly-complementary organizations, positioning the combined company for accelerated growth and enhanced outcomes for stakeholders.
- The transaction is expected to drive meaningful earnings accretion through cost and revenue synergies and leveraged capital markets expertise.
The acquisition of TWO by UWM Holdings Corporation marks a significant strategic move that is set to reshape the mortgage industry landscape, driving growth and value for stakeholders.