Swiss bank UBS has agreed to buy US-focused automated wealth management provider Wealthfront, which has more than US$27 billion in assets under management, in an all-cash deal the two companies said was worth US$1.4 billion.
The acquisition of Wealthfront, which has more than 470,000 clients in the United States and caters to well-off millennial and Gen Z investors, is set to close in the second half of 2022.
“UBS will accelerate its growth ambitions in the US, broaden the firm’s reach among affluent investors and expand its distribution and capabilities,” the two companies said in a statement on Wednesday, January 26.
Wealthfront will become a wholly owned subsidiary of UBS and will operate as a business within UBS Global Wealth Management Americas, they added.
“Adding Wealthfront’s capabilities and client base to our global investment ecosystem will significantly boost our ability to grow our business in the U.S.,” UBS CEO Ralph Hamers said.
Joining up with UBS will let Wealthfront offer clients additional services and research, its CEO David Fortunato said, adding, “We couldn’t be more excited to have found a strategic partner who has the same view on the power of technology”.
UBS had stated in October it wanted to build a digitally scalable advice model for affluent clients in the Americas who have up to US$2 million to invest.
This followed a trend set by US rivals Goldman Sachs and Morgan Stanley in looking to broaden their client bases beyond the super-high-net-worth individuals they traditionally served.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI