UBS Makes Private Client Acquisition

Contributing Editor

11 April 2006

UBS has acquired the private-client arm of Piper Jaffray, a US-based financial services firm. The Swiss bank will pay $500 million for the business, which will add around 800 brokers to its current number of 7,500. The acquisition appears to fit in well with UBS’s current strategy, articulated on numerous occasions by Peter Wuffli, the bank’s chief executive, of making bolt-on acquisitions in wealth management. UBS said the transaction is expected to close at the beginning of the third quarter, subject to regulatory approval. The transaction also includes the assignment of a portfolio of client loans for approximately $300 million and an additional cash consideration of $75 million at closing, dependent on certain criteria and business thresholds being met, said UBS in a statement. Piper Jaffray Financial Advisors is based in Minneapolis and has total client assets of $52 billion. It provides wealth management services to private clients including estate planning, retirement planning, brokerage and insurance. Its business has nearly 90 branch offices located across 17 states. UBS said the business will be integrated into UBS Wealth Management US and will enhance its presence in the Midwest and western US. “This transaction is a natural fit with our current wealth management offering in the US,” said Marten Hoekstra, head of UBS Wealth Management US, in a statement. “This network of talented individuals will allow UBS to serve a broader base of clients.”