Two Harbors Enters Definitive Merger Agreement with CrossCountry Mortgage for $10.80/Share Cash, Terminates UWM Deal

summarizeSummary

Two Harbors has signed a definitive agreement to be acquired by CrossCountry Mortgage for $10.80 per share in cash, simultaneously terminating its previous merger agreement with UWM Holdings.

check_boxKey Events

• Definitive Merger Agreement Signed

  Two Harbors Investment Corp. has entered into a definitive merger agreement with CrossCountry Intermediate Holdco, LLC, an affiliate of CrossCountry Mortgage, LLC.

• All-Cash Acquisition at $10.80 Per Share

  Each outstanding share of Two Harbors common stock will be converted into the right to receive $10.80 in cash. This is a premium over the previously reported unsolicited offer of $10.70 per share.

• Termination of UWM Merger Agreement

  The company terminated its previously announced merger agreement with UWM Holdings Corporation. The special meeting of stockholders for the UWM merger has been canceled.

• Acquirer Pays Termination Fee

  CrossCountry Mortgage, on behalf of Two Harbors, agreed to pay the $25.4 million termination fee to UWM Holdings Corporation.

auto_awesomeAnalysis

This 8-K announces a definitive merger agreement where Two Harbors Investment Corp. will be acquired by CrossCountry Intermediate Holdco, LLC for $10.80 per common share in cash. This transaction follows the company's board deeming a prior unsolicited offer superior and simultaneously terminates the existing merger agreement with UWM Holdings Corporation. The new acquirer, CrossCountry Mortgage, will pay the $25.4 million termination fee to UWM. This all-cash deal provides certainty and a premium to common shareholders, resolving the prior merger uncertainty and creating a fully integrated mortgage company spanning origination through servicing.