- The finance UBS group recalls its $1.4 billion deal to buy Wealthfront.
- The firm mutually terminated its deal on September 2, 2022.
The multinational investment bank and finance firm UBS AG Group and the financial accounting company, Wealthfront mutually terminate its $1.4 billion deal. On this Friday, both firms officially announced their recall on the deal. The following deal was a part in which the automated wealth management provider was to be acquired by UBS.
UBS’s Deal of $1.4 Billion With Wealthfront
On January 26, 2022 the deal was firstly announced and it was expected to fast-track the growth of UBS in the U.S. market. Ralph Hamers, CEO of UBS previously added in his statement that, “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.”
While, he also said that Wealthfront’s addition will boost UBS’ “long-term ambition to deliver a scalable, digital-led wealth management solution to affluent investors.”
It must be noted that the leading financial firms like Wall Street giants JPMorgan Chase & Co, Goldman Sachs and Morgan Stanley recently ventured in the new client bases.
UBS, stated that it is committed to its plan of growing in the U.S. hence it will continuously build its digital wealth management offerings.
In addition, the Chief Executive Officer of Wealthfront, David Fortunato, added that, “We are continuing to explore ways to work together in a partnership and UBS has given us $70 million in financing at a $1.4 billion valuation.” He further said, “Thank you all for continuing on this journey with us.”
Although the deal with Wealthfront as one of the largest digital wealth management firms known as “robo-advisers,” was expected to close in the second half of the year.
Source: https://www.thecoinrepublic.com/2022/09/03/ubs-recall-1-4-billion-deal-to-buy-robo-advisor-wealthfront/