Two Harbors Acquired by UWM | Financial Services M&A Deal

UWM has rejected an acquisition of Two Harbors, a mortgage business in Washington, for $150 million. Two Harbors Investment Corp. is a mortgage servicer and holder of mortgage servicing rights, making it a target in mortgage acquisition and financial services M&A. UWM acquisitions in the mortgage sector are designed to expand servicing scale, but Two Harbors says the proposed UWM acquires Two Harbors structure would introduce financing, closing, business, and credibility risks. The other acquisition bid was terminated, and Two Harbors reaffirmed support for a $11.30 per share all-cash offer from CrossCountry Mortgage, citing lower blended value versus the UWM stock option and questioning UWM’s stated synergy expectations.