The Swiss bank UBS is walking away from a $1.4 billion all-cash deal to buy California-based robo-adviser Wealthfront.
In a terse statement late Friday, the Zurich-headquartered multinational investment bank UBS Group AG UBS,
“UBS remains committed to its growth plans in the U.S. and will continue the buildout of its digital wealth-management offering,” UBS said.
The bank announced the Wealthfront deal in late January, saying the acquisition would “accelerate its growth ambitions in the U.S., broaden the firm’s reach among affluent investors and expand its distribution and capabilities.”
At the time, UBS said that Wealthfront, based in Palo Alto, Calif., had more than $27 billion in assets under management and more than 470,000 clients in the U.S., as well as a “state-of-the-art, digital-only platform tailored to next-gen affluent investors.”
The U.S. economy added 315,000 jobs in August, slightly below expectations of 318,000 and a deceleration from July's growth of 526,000 payrolls.
Claudia Assis is a San Francisco-based reporter for MarketWatch. Follow her on Twitter @ClaudiaAssisMW.
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