Betterment, one of the largest U.S.-based independent digital advisors, is acquiring the U.S. business of Wealthsimple, a Canadian robo-advisor.
The acquisition could add as many as 17,400 customers, with $190 million in assets, to Betterment's client base, according to a spokesperson. Terms of the deal were not disclosed.
"We are excited to bring these customers on board and help them secure a better financial future," said Betterment CEO Sarah Levy, who succeeded Jon Stein in the job two months ago, in a statement. "This was an excellent opportunity for us to grow our customer base, and we'll continue to be aggressive in opportunities that accelerate our business goals."
Wealthsimple's U.S. customer accounts will be transferred to Betterment by June 2021 if customers choose that option.
Michael Katchen, co-founder and CEO of Wealthsimple, said his firm will focus on its Canadian business "for the time being."
