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- All-cash deal set to close this year, pending approvals
- Purchase expands UBS’ U.S. market reach
- Wealthfront to become wholly owned subsidiary of UBS
ZURICH, Jan 27 (Reuters) – UBS (UBSG.S) has agreed to buy California-based digital wealth management start-up Wealthfront in a $1.4 billion all-cash deal, as the Swiss bank targets younger tech-savvy investors in the United States.
UBS said it would make Wealthfront’s capabilities “the foundation” as it seeks to grow business amongst the 130 million millennial and Gen Z investors in the United States who will “own an increasing share of the world’s wealth”.
The acquisition marks the first major deal in Chief Executive Ralph Hamers’ bid to reach customers outside UBS’s super-rich core client base – made up primarily of billionaires and multi-millionaires – by upping digital services.</…….