Toronto-based Wealthsimple Inc. has sold its U.S. book of business to New York-based Betterment Holdings Inc.
The sale, announced on Thursday, will involve transferring all of Wealthsimple’s U.S. clients and accounts to Betterment, a digital wealth management company. The deal doesn’t include any of Wealthsimple’s technology, operations or employees.
“We are excited to bring these customers on board and help them secure a better financial future,” said Sarah Levy, Betterment’s CEO, in a release. “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.”
The accounts will be transitioned to Betterment by June 2021.
“As we shift our focus to our Canadian business for the time being, finding a partner for our U.S. business that shared our commitment to putting clients first was our top priority,” said Michael Katchen, co-founder and CEO of Wealthsimple, in a release. “It’s been a privilege to serve our U.S. clients, and we’re confident that their investments will continue to be in good hands with Betterment.”
Wealthsimple first entered the U.S. market in 2017. The robo-advisor also has a U.K. division.
This is not the first time Wealthsimple has carved off one its divisions. The tech company sold its advisory business, Wealthsimple for Advisors, to Toronto-based Purpose Advisor Solutions in early 2020.