The Goldman Sachs Group has announced that it has entered into an agreement to acquire United Capital Financial Partners, Inc. for $750m in cash - its biggest deal in two decades.
The company said in a statement that the transaction is expected to close in the third quarter of 2019, subject to customary regulatory approvals and conditions.
United Capital is a registered investment advisor with $25 billion of assets under management and over 220 financial advisers serving 22,000 clients in over 90 offices across the United States. United Capital also operates FinLife CX, a digital platform that helps independent advisers grow their business and form stronger relationships with their clients.
The acquisition will expand Goldman Sachs' wealth management business, which is comprised of Private Wealth Management and Ayco that together have nearly $500 billion of assets under supervision.
David M. Solomon, chairman and CEO of Goldman Sachs, said: "We have a leading wealth management franchise, driven by our preeminent Private Wealth Management and Ayco offerings, which will serve as a cornerstone of our business as we execute on our long-term strategy to offer clients solutions across the wealth spectrum."
"United Capital will help accelerate this strategy by broadening our reach, allowing more clients to access the intellectual capital and investment capabilities of Goldman Sachs."
As part of the transaction, Joe Duran, Founder and CEO of United Capital, will join Goldman Sachs. The firm will also welcome the team of employees at United Capital, including its advisers in offices across the United States.
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