Swiss bank UBS has agreed to buy U.S.-focused automated wealth management provider Wealthfront, which has more than $27 billion in assets under management, in an all-cash deal the two companies said was worth $1.4 billion.
UBS had said in October it wanted to build a digitally scalable advice model for affluent clients in the Americas who have up to $2 million to invest.
This followed a trend set by U.S. rivals Goldman Sachs and Morgan Stanley in looking to broaden their client bases beyond the super-high-net-worth individuals they traditionally served.
The companies said UBS Investment Bank is acting as financial adviser to UBS and Sullivan & Cromwell is legal counsel. Qatalyst Partners is Wealthfront’s financial adviser and Fenwick & West is acting as legal counsel.
Read more: Reuters
