UBS Acquires Wealthfront in $1.4 Billion Deal to Expand U.S. Reach

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The logo of Swiss bank UBS is seen at the company’s office at Bahnhofstrasse in Zurich in this July 1, 2009 file photo. REUTERS/Arnd Wiegmann/Files

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ZURICH, Jan 26 (Reuters) – Swiss bank UBS has agreed to buy Wealthfront, a U.S. automated wealth management provider with more than $27 billion in assets under management, in an all-cash deal. worth $1.4 billion.

The acquisition of Wealthfront, which has more than 470,000 clients in the United States and targets affluent millennial and Gen Z investors, is expected to close in the second half of 2022.

“UBS will accelerate its growth ambitions in the United States, broaden the company’s reach with high-net-worth investors and expand its distribution and capabilities,” the two companies said in a statement on Wednesday.

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Wealthfront will become a wholly owned subsidiary of UBS (UBSG.S) and operate as a business within UBS Global Wealth Management Americas, they added.

“Adding Wealthfront’s capabilities and customer base to our global investment ecosystem will significantly enhance our ability to grow our business in the United States,” said UBS CEO Ralph Hamers.

UBS Investment Bank is acting as financial advisor to UBS and Sullivan & Cromwell is legal advisor. Qatalyst Partners is the financial adviser to Wealthfront and Fenwick & West is acting as legal adviser, according to the statement.

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Reporting by Michael Shields; Editing by Jan Harvey and Alexander Smith

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