Goldman Sachs Group (GS - Get Report) on Thursday agreed to buy United Capital Financial Partners for $750 million in cash, a nod to the investment bank's ongoing efforts to broaden its retail wealth management offerings.
In a statement, Goldman said the transaction will boost the firm's longer-term wealth management strategy. The acquisition is scheduled to close in the third quarter. Goldman currently has $500 billion in wealth management assets.
We are very pleased to announce that United Capital has entered an agreement to become part of The Goldman Sachs Group, Inc. Learn more: https://t.co/EghR73t5Vc @GoldmanSachs pic.twitter.com/VCk9MTm642— United Capital (@United_Capital) May 16, 2019
United Capital, a leading aggregator of registered investment advisers, has $25 billion of assets under management and more than 220 financial advisers. It also offers advisers a digital platform, FinLife CX, that helps oversee and manage client investments.
"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," Goldman CEO David Solomon said in the statement.
WATCH: In the latest episode of #CatchUpWithDavid, CEO David Solomon speaks with $GS' global head of consumer Harit Talwar on building the firm's online consumer banking platform @marcus: https://t.co/MFYCN9YKnR pic.twitter.com/wmmldmQ5kb— Goldman Sachs (@GoldmanSachs) May 13, 2019
The move allows Goldman to pivot its business from the ultra-high-net-worth market toward the mass affluent, where United Capital has a strong foothold.
Joe Duran, the founder and CEO of United Capital, will join Goldman, the company said.
Shares of Goldman were up 1.19% at $198.67 in early trading on Thursday.