Zurich (awp) – UBS has given up on the purchase of the American online wealth manager Wealthfront. The deal, which was announced last February, was expected to win the big bank wealthy young customers from Generations Y and Z.
In a press release released overnight from Friday to Saturday, the three-key bank said that it had been decided by mutual agreement to abandon this $1.4 billion transaction, without further details. The integration of Wealthfront into the Wealth Management subsidiary of UBS was planned for the second half of this year.
UBS only specifies in its press release that it intends to maintain its growth projects in the United States and that it will continue to develop its online wealth management offer. It will also buy bonds convertible into Wealthfront shares for a total of $69.7 million.
Wealthfront offers automated wealth management solutions. The Californian company has, according to previous indications, 470,000 customers and manages more than 27 billion dollars.
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