Wednesday 26th of January 2022 09:29:42 AM

UBS to acquire Wealthfront for $1.4B for wealth management offering to millennial and Gen Z

UBS bank in the Swiss financial center of Zurich city yuelan/iStock Editorial via Getty Images
  • UBS (UBS +1.2%) and Wealthfront, automated wealth management provider serving the next generation of investors, signed an agreement wherein the former would acquire the latter in an all-cash transaction valued at $1.4B.
  • Through this acquisition, UBS will accelerate its growth ambitions in the U.S., broaden the firm’s reach among affluent investors and expand its distribution and capabilities.
  • Wealthfront boosts of $27B in assets under management and 470K+ clients in the U.S with main focus on millennial and Gen Z investors, a client segment with significant domestic growth potential.
  • Post the transaction, Wealthfront and its clients will benefit from access to UBS's leading wealth management capabilities.
  • Wealthfront will become a wholly owned subsidiary of UBS and will operate as a business within UBS Global Wealth Management Americas.
  • Transaction is expected to close in 2H22.
  • SA Contributor Wolf Report updated its Buy rating on the billionaire bank.


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