UBS increases US press by $ 1.4 billion Wealthfront purchase

The logo of the Swiss bank UBS can be seen in the company office on Bahnhofstrasse in Zurich in this file from July 1, 2009. REUTERS / Arnd Wiegmann / Files

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  • The cash agreement is due to close this year awaiting approvals
  • Purchases expand UBS ‘US market reach
  • Deal lets Wealthfront offer more services, research

ZURICH, January 26 (Reuters) – Swiss bank UBS has agreed to buy US-focused automated asset management provider Wealthfront, which has more than $ 27 billion in assets under management, in a cash deal that the two companies said was 1, Worth $ 4 billion.

The acquisition of Wealthfront, which has more than 470,000 customers in the United States and is aimed at affluent Millennium and Gen Z investors, is expected to be completed in the second half of 2022.

“UBS will accelerate its growth ambitions in the United States, expand the firm’s reach among wealthy investors, and expand its distribution and capacity,” the two companies said in a statement Wednesday.

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

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

Joining UBS will allow Wealthfront to offer customers additional services and research, said its CEO David Fortunato, adding: “We could not be more excited to have found a strategic partner who has the same view on the power of technology.”

UBS had said in October that they wanted to build a digitally scalable advisory model for wealthy clients in America that has up to $ 2 million to invest. Read more

This followed a trend set by US rivals Goldman Sachs (GS.N) and Morgan Stanley (MS.N) in trying to expand their customer bases beyond the super-high-net-worth individuals they traditionally served.

UBS said it would fund the deal with excess capital.

The companies said that UBS Investment Bank acts as financial advisor to UBS and Sullivan & Cromwell is the legal advisor. Qatalyst Partners is Wealthfront’s financial advisor, and Fenwick & West acts as legal advisor.

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

Our standards: Thomson Reuters Trust Principles.

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