UBS To Acquire Wealthfront For $1.4B In 'Digital-Led Wealth Management' Push

In an all-cash transaction, UBS Group AG UBS will acquire fintech Wealthfront For $1.4 billion.

The acquisition of this next-generation banking service plays into UBS’ commitment to delivering scalable, digital-first wealth management solution to customers. Wealthfront helps users manage and grow their wealth through cash accounts that offer some of the highest APYs on the market, as well as free financial advice, among other offerings. 

“Adding Wealthfront’s capabilities and client base to our global investment ecosystem will significantly boost our ability to grow our business in the US,” said Ralph Hamers, group CEO of UBS.

“Wealthfront complements our core business in the US providing wealth management to high net worth and ultra-high net worth investors through trusted relationships with financial advisors, and will enhance our long-term ambition to deliver a scalable, digital-led wealth management solution to affluent investors.”

Why It Matters: Wealthfront’s primary focus is on the growing demographic of millennial and Gen Z investors.

“Partnering with UBS will allow Wealthfront to offer our clients additional value-added services and best in class research that will help accelerate our vision to make growing wealth delightfully easy,” said David Fortunato, CEO of Wealthfront.

“We couldn’t be more excited to have found a strategic partner who has the same view on the power of technology as we do. We look forward to providing our service to even more millennial and Gen Z investors.”

The transaction is expected to close in the second half of 2022. UBS Investment Bank is serving as financial advisor to UBS and Sullivan & Cromwell is acting as legal counsel.

Qatalyst Partners is serving as Wealthfront’s exclusive financial advisor and Fenwick & West is acting as legal counsel.

Photo by Savvas Stavrinos from Pexels.