Two Harbors sees increased cash offer in merger update

(NYSE: TWO) announced a major update to its merger agreement with CrossCountry Mortgage (CCM).

Following recent competitive bidding, CrossCountry Mortgage increased its all-cash offer to acquire all outstanding common shares of Two Harbors to $11.30 per share, an improvement from the previous $10.80 offer.

The Board of Directors at Two Harbors unanimously supports this deal, noting that the fixed cash compensation provides certainty for investors and avoids the risks associated with external financing.

This strategic move aims to integrate CrossCountry’s retail origination business with Two Harbors’ established 'RoundPoint' mortgage servicing platform.

This decision follows an unsolicited competing proposal from UWM Holdings received earlier in April.

After careful review, the Two Harbors Board concluded that the amended deal with CrossCountry remains the superior path forward.

Shareholders are set to vote on this transaction at a special meeting on May 19, 2026.

If approved, the merger is expected to close in the third quarter of 2026, at which point Two Harbors will be delisted from the New York Stock Exchange.

Meanwhile, the company reported Q1 2026 earnings available for distribution of $0.34 per share.