The firms have mutually agreed to terminate their merger agreement.
Instead, UBS has agreed to purchase a USD 69.7 million note convertible into Wealthfront shares—at the same $1.4 billion valuation as the deal they announced in January. According to a press release announcing the move, UBS remains committed to its growth plans in the US and strengthening its digital offering.
In January the firms announced that UBS had entered an agreement to purchase robo-advisor Wealthfront in an all-cash transaction valued at $1.4 billion, further broadening the firm’s reach in the U.S. among young, affluent investors. At the time the deal was said to net UBS an additional $27 billion in AUM and more than 470,000 clients in the U.S.
No reason was given for the decision, which was described as “mutual.”
