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.
Zocks has inked an exclusive partnership with mega-RIA Hightower, while Jump becomes the choice AI operating system for Equitable Advisors' field force.
The agency's proposal to rescind the contentious 2024 Biden-era mandate opens up a 60-day public comment period.
The Carmel, Indiana RIA grew nearly 150% in assets since severing ties with its first backer following a FINRA dispute.
Meanwhile, Raymond James' employee arm adds a defector from D.A. Davidson, and South Carolina-based RIA Ballast Rock Private Wealth recruits a new advisor.
A FINRA arbitration panel sided with a former wealth manager fired over a $642 deli platter and a disputed client event.
As $84 trillion prepares to change hands, advisors who treat estate planning as peripheral are quietly building a sieve, not a book.
In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.
