UBS buys Wealthfront in $1.4 bln deal to widen U.S. reach

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

ZURICH, Jan 26 (Reuters) – Swiss bank UBS has agreed to buy Wealthfront, a U.S.-focused automated wealth management provider with more than $27 billion in assets under management, in an all-cash deal the two companies said was worth $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 U.S., broaden the firm’s reach among affluent investors and expand its distribution and capabilities,” the two companies said in a statement on Wednesday.

Wealthfront will become a wholly owned subsidiary of UBS (UBSG.S) 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.

UBS Investment Bank is acting as financial adviser to UBS and Sullivan & Cromwell is legal counsel. Qatalyst Partners is Wealthfront’s financial adviser and Fenwick & West is acting as legal counsel, the statement said.

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

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