UBS and Wealthfront mutually agree to terminate merger agreement

Rhea-AI Summary

UBS has decided to purchase a USD 69.7 million note convertible into Wealthfront shares following the mutual termination of their merger agreement, which was originally announced on 26 January 2022. This transaction aligns with UBS's commitment to expanding its growth initiatives in the US and enhancing its digital wealth management services.

Positive

• UBS is purchasing a USD 69.7 million convertible note, positioning itself for potential future ownership of Wealthfront.
• The move indicates UBS's ongoing commitment to growth in the US market.
• Strengthens UBS's digital wealth management capabilities.

Negative

• Termination of the merger agreement with Wealthfront may signal potential integration challenges or strategic shifts.

UBS to purchase a USD 69.7 million note convertible into Wealthfront shares

UBS remains committed to its growth plans in the US and strengthening its digital offering

NEW YORK--(BUSINESS WIRE)-- UBS and Wealthfront have mutually agreed to terminate their merger agreement, initially announced 26 January 2022, under which Wealthfront was to be acquired by UBS Americas Inc.

UBS will purchase a USD 69.7 million note convertible into Wealthfront shares.

UBS remains committed to its growth plans in the US and will continue the build-out of its digital wealth management offering. 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220902005337/en/

UBS Americas Inc.

Investor Relations:

Americas: +1-212-882 5734

Switzerland: +41-44-234 41 00

Media Relations:

Americas: +1-212-713 1302

Switzerland: +41-44-234 85 00

UK: +44-207-567 47 14

APAC: +852-297-1 82 00

www.ubs.com/media

Source: UBS

FAQ

What is UBS's recent acquisition involving Wealthfront?

UBS is purchasing a USD 69.7 million note convertible into Wealthfront shares after terminating their merger agreement.

Why did UBS terminate its merger agreement with Wealthfront?

The merger agreement was mutually terminated, but the press release does not specify the reasons for this decision.

How does UBS plan to use the convertible note for Wealthfront?

The convertible note allows UBS to potentially acquire Wealthfront shares in the future, enhancing its digital offerings.

When was the merger agreement between UBS and Wealthfront initially announced?

The merger agreement was initially announced on 26 January 2022.