09:13 AM EST, 12/17/2025 (MT Newswires) -- UWM (UWMC) will acquire Two Harbors Investment ( TWO/PA ) in an all-stock merger deal for an equity value of $1.3 billion, the companies said Wednesday.

The companies said the deal is based on a fixed exchange ratio of 2.3328 shares of UWM class A common stock for each share of Two Harbors. UWM shareholders are expected to own about 87% of the combined company, with Two Harbors shareholders owning about 13% upon closing, according to a statement.

The transaction, expected to close in Q2 2026, will add a mortgage servicing rights portfolio with an unpaid principal balance of $176 billion to UWM, nearly doubling its existing portfolio to about $400 billion, the companies said.

It will also expand the combined company's in-house servicing capabilities and generate recurring revenue, with the companies estimating potential annual cost and revenue synergies of about $150 million.

Shares of Two Harbors were up over 9% in Wednesday's premarket activity, while UWM shares were down more than 6%.