UBS and Wealthfront terminate acquisition plans

UBS and Wealthfront terminate acquisition plans
Instead, UBS is purchasing a $69.7 million note that is convertible into Wealthfront shares, an investment that values the robo-adviser at $1.4 billion.
SEP 02, 2022

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.

Latest News

Trump executive order set to ease path for private assets in 401(k)s, but hurdles remain
Trump executive order set to ease path for private assets in 401(k)s, but hurdles remain

A new Pitchbook analysis unpacks sticking points relating to liquidity, costs, and litigation risk for would-be investors and plan sponsors.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

Vestmark, BlackRock, iCapital, and Dynasty forge four-way private market partnership
Vestmark, BlackRock, iCapital, and Dynasty forge four-way private market partnership

The collaboration will give RIAs yet another access point into the alternatives space through a new unified managed account capability.

DeVoe: Record-breaking RIA M&A run led by private equity's consolidator comeback
DeVoe: Record-breaking RIA M&A run led by private equity's consolidator comeback

A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year- their highest share since 2021 according to DeVoe & Company.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.