UBS said that it will remain committed to its growth plans in the US and will continue to build its digital wealth management offering
UBS US wealth management headquarters. (Credit: Arnapoli/Wikipedia)
Swiss investment bank UBS and US-based automated wealth management company Wealthfront have mutually agreed to terminate their previously announced $1.4bn deal.
In January this year, UBS Americas entered into an agreement to acquire the robo-adviser in an all-cash transaction valued at $1.4bn.
The transaction was expected to close in the second half of this year, subject to certain closing conditions including regulatory approvals.
The valuations of both companies declined since they signed the agreement, reported Bloomberg.
UBS said that it will remain committed to its growth plans in the US and will continue to build its digital wealth management offering.
Large-scale financial firms including JPMorgan Chase & Co., Goldman Sachs, and Morgan Stanley have recently ventured into new client bases, beyond the high-net-worth individuals, reported Reuters.
Wealthfront provides financial planning, banking services and investment management solutions, primarily to millennial and Gen Z investors.
Wealthfront chief executive officer David Fortunato was quoted by Reuters as saying: “We are continuing to explore ways to work together in a partnership and UBS has given us $70m in financing at a $1.4bn valuation.”
In a separate development, UBS Wealth Management announced that a team of four advisors, managing more than $500m in client assets has joined the company in Sherman Oaks, California.
The team led by Roshan Ghaznavi as managing director and financial advisor and Matthew Seukunian as a financial advisor is focused on the pre- and post-retirement needs of clients.
UBS Wealth Management USA greater Los Angeles market head Jim Kottoor said: “We’re excited to welcome Roshan, Matthew and their team to UBS as we continue to grow our business in this important market.
“We remain focused on recruiting and retaining the most productive advisors in the industry, and we’re thrilled to add their expertise to our team.”