MUFG offers $664m to snap up Japanese robo-advisory firm WealthNavi
Mitsubishi UFJ Financial Group (MUFG) has made a move to acquire Japanese robo-advisory firm WealthNavi for approximately JPY 99.7 billion ($664 million).
MUFG to pay $664 million for WealthNavi
Founded in 2015, WealthNavi offers an automated platform for asset management, managing over JPY 1.3 trillion.
The solution features options for portfolio management, tax optimisation, rebalancing, and more, incorporating robo-advisors into the creation of diversified exchange-traded funds (ETFs) portfolios.
In February, MUFG acquired a 15% stake in WealthNavi. Reuters now reports that MUFG plans to make a tender offer of JPY 1,950 per share, an 84% premium over WealthNavi’s 28 November closing price, in a bid to turn the company into a wholly-owned subsidiary.
According to a MUFG statement, the financial services heavyweight believes the deal will allow for the “expansion of its asset management capabilities”, boosting its user experience by incorporating WealthNavi’s robo-advisor services into its “asset management product lineup”.
Furthermore, MUFG states it expects WealthNavi’s “established brand image, as well as its name recognition and corporate image,” to “further improve through the utilisation of the MUFG brand”.
This acquisition follows several investments by MUFG in global fintechs this year, including participation in Ascend Money’s $195 million raise, a $393 million investment in Mynt, and an additional $334 million in digital lender DMI Finance.
