UBS has terminated the previously announced $1.4bn purchase of US-based automated wealth management firm Wealthfront.
The deal, which was scrapped mutually, was signed in January this year. It proposed to acquire Wealthfront by UBS Americas.
Go deeper with GlobalData
However, UBS is expected to proceed with the plan to buy a $69.7m note convertible into Wealthfront shares.
At the time of signing the deal, Wealthfront had more than $27bn assets under management for over 470,000 clients in the US. The company mainly serves the millennial and Gen Z investors.
It offers a range of financial planning solutions as well as banking services and investment management products.
Had the deal culminated, it would have further boosted UBS’ footprint in the US and also strengthened its distribution and capabilities.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn a statement, UBS said: “UBS remains committed to its growth plans in the US and will continue the build-out of its digital wealth management offering.”
Wealthfront, in a blog post, also confirmed its plans to continue to operate as an independent entity.
The firm stated: “We are continuing to explore ways to work together in a partnership and UBS has given us $69.7m in financing at a $1.4bn valuation.
“I am incredibly excited about Wealthfront’s path forward as an independent company and am proud to share that thanks to the hard work of our team and the trust you put in us, we will be cash flow positive and EBITDA profitable in the next few months.”
