UBS is to buy robo-adviser Wealthfront for £1.04bn to accelerate its digital growth ambitions in the US.

UBS said the deal will expand its distribution and wealth management capabilities.

The deal is on an all-cash basis and is expected to complete in the second half of the year.

It is subject to regulatory approval.

Wealthfront has over £20.15bn in assets under management for over 470,000 US-based clients. It does not yet operate in the UK.

The robo-advice platform provides access in the US to Financial Planning capabilities, banking services and investment management solutions.

Wealthfront’s primary focus is on millennial and Generation Z investors.

UBS says the platform will provide the foundation of a new digital offering which will also include access to remote human advice.

Ralph Hamers, group CEO of UBS, said: “Wealthfront complements our core business in the US providing wealth management to high net worth and ultra high net worth investors through trusted relationships with financial advisors, and will enhance our long-term ambition to deliver a scalable, digital-led wealth management solution to affluent investors.”

Wealthfront will become a wholly owned subsidiary of UBS and will operate as a business within UBS Global Wealth Management Americas.