By Denny Jacob

 

UBS Group AG said Wednesday it would acquire automated wealth management provider Wealthfront in an all-cash transaction valued at $1.4 billion.

Wealthfront, which primarily focuses on millennial and Gen Z investors, has over $27 billion in assets under management and more than 470,000 clients in the U.S.

Wealthfront will become a wholly owned subsidiary of UBS and will operate as a business with UBS Global Wealth Management Americas. Wealthfront will expand UBS's existing offering through the firm's Wealth Advice Center and its Workplace Wealth Solutions business.

"Adding Wealthfront's capabilities and client base to our global investment ecosystem will significantly boost our ability to grow our business in the U.S.," Group Chief Executive Ralph Hamers said in prepared remarks.

The transaction is expected to close in the second half of 2022.

 

Write to Denny Jacob at denny.jacob@wsj.com

 

(END) Dow Jones Newswires

January 26, 2022 12:33 ET (17:33 GMT)

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