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.
AI-driven job fears are weighing on retirement confidence, especially among Gen Z and Millennials, Thrivent survey finds
It’s the second time in as many years regulators have penalized Centaurus Financial for lack of compliance with Reg BI.
AI Teammate is embedded within Wells Fargo’s Advisor Gateway desktop platform.
Elsewhere, Ameriprise added a $470 million Wells team in New York, while an ex-Morgan Stanley advisor bolsters UBS' Austin, Texas office.
Financial advisors play an essential role in helping small business owners navigate their transition out of the company — and into retirement.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
