Two Harbors Investment Corp. (TWO) and CrossCountry Mortgage (CCM) announced a definitive merger agreement on March 27 2026, in which CrossCountry will acquire all outstanding shares of TWO common stock for $10.80 per share in cash. Preferred stock holders will receive $25.00 per share plus accrued dividends.
The transaction values the deal at approximately $1.13 billion based on the number of shares outstanding, and includes a $25.4 million termination fee paid to UWM Holdings Corporation for the termination of the prior all‑stock agreement dated December 17 2025. Upon completion, TWO common stock will be delisted from the NYSE and the company will become a wholly owned subsidiary of CrossCountry.
CrossCountry’s strategy is to build a fully integrated mortgage platform by combining its leading retail origination network with Two Harbors’ mortgage servicing rights portfolio and RoundPoint’s servicing platform. The combined entity will leverage CrossCountry’s #1 retail origination position and its top‑six non‑bank servicing platform to capture synergies in customer retention, cost efficiencies, and recurring revenue.
Two Harbors has faced significant financial volatility, swinging from a net income of $298.17 million in 2024 to a net loss of $454.30 million in 2025. The loss, driven by a $200 million litigation settlement and higher interest expense, made the cash‑based offer attractive to shareholders and helped justify the $10.80 per share price, which is below the prior market price but above the $10.80 offer.
The deal is expected to close in the second half of 2026, after regulatory approvals and shareholder votes. Investor sentiment was cautious, citing concerns about the timing of the transaction and the valuation relative to Two Harbors’ recent earnings performance.
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