- UBS withdraws offer to buy automated investment service Wealthfront
- The $1.4 billion deal was announced in January 2022
- In 2021, Wealthfront began offering customers access to the digital asset market
The Swiss financial holding UBS refused a deal for $1.4 billion. It was for this amount that the company planned to acquire a Wealthfront robotic consultant. The deal was reportedly terminated by mutual agreement.
The purchase of the investment service became known in January 2021. UBS argued that Wealthfront’s clients would not experience any change in the way the company operates after it is taken over by the financial holding.
At the moment, it is not known what prompted the termination of the deal. However, the released statement speaks of a mutual agreement to drop the takeover. The acquisition of Wealthfront was expected to be completed in the second half of this year.
In the context of the cryptocurrency industry, this news is interesting because in the summer of 2021, the robotic service began to expand into the digital asset market. The company opened access to such investment products as Grayscale Bitcoin Trust and Grayscale Ethereum Trust for clients.
“We are incredibly excited that Wealthfront is moving forward as an independent company and we are proud to announce that thanks to the hard work of our team and the trust you have placed in us, we will have a positive cash flow and EBITDA over the next few months ,” — Wealthfront representatives said.
As for UBS, the financial holding is still on course to expand in the US. The company plans to ramp up its digital wealth management offering in the near future.