UBS Americas Inc. and Wealthfront said Friday they have mutually decided to terminate their acquisition agreement.
In January, the bank announced plans to acquire the robo-adviser for $1.4 billion. Instead, UBS is purchasing a $69.7 million note that is convertible into Wealthfront shares, an investment that values the company at $1.4 billion.
Though Wealthfront will remain an independent company, it plans to “explore ways” to work with UBS in a partnership, according to a blog post from Wealthfront CEO David Fortunato. The robo-adviser will be cash flow positive and EBITDA profitable in the next few months, he added.
“With this fresh round of funding under our belt along with the ability to begin self-funding the business, we are committed to building a lasting company that positively impacts the lives of our clients for decades to come,” Fortunato said.
UBS said the bank is committed to growing in the U.S. and building out a digital wealth management offering.
A UBS spokesperson refused to comment. Wealthfront did not immediately respond to a request for comment.
The latest arrivals, including a 10-advisor ensemble from Ameriprise, bolster the firm's independent contractor and employee advisor channels.
The firm has also appointed Mike Downing and Sean Brennan as co-presidents to its US operations as it looks to proceed with an ambitious five-year growth plan.
Meanwhile, Kestra partner Coastline Wealth Management passes a milestone in its geographic expansion with a former Ameriprise team in New York.
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