UBS will buy the robo-advisory firm Wealthfront for $1.4 billion, the two companies announced Wednesday.
The announcement characterized the deal as an “all-cash transaction valued at $1.4 billion.” According to the press statement, “Wealthfront’s existing clients will see no immediate change to their experience and can look forward to benefiting from UBS’s breadth of products, services, and intellectual capital.”
“The transaction is currently expected to close in the second half of 2022, subject to closing conditions including regulatory approvals,” per the release.
The announcement is notable in the crypto context given that last summer, Wealthfront began offering crypto-related access to its clients in the form of the Grayscale Bitcoin Trust and Grayscale Ethereum Trust. Wealthfront had signaled its plan to provide such access in April 2021, citing interest from younger investors.
UBS leadership has struck a largely negative tone when it comes to crypto, as noted last fall by Fortune. Earlier this month, the bank told clients that “we view direct exposure in crypto coins or tokens as attractive only for highly risk-tolerant and speculative investors.” The bank also said that it “does not conduct any business within the digital asset space.”