AsianFin -- Mitsubishi UFJ Financial Group Inc. (MUFG) is set to acquire Japanese robo-adviser WealthNavi Inc. for up to ¥99.7 billion ($665 million) as part of its strategy to enhance its financial technology offerings and tap into the growing trend of online investing among Japanese households.

MUFG aims to acquire WealthNavi through a tender offer at ¥1,950 per share, which represents an 84% premium over the fintech firm’s closing price on Thursday. The goal is to make WealthNavi a fully owned subsidiary, according to a filing on Friday.

This move reflects the broader trend in Japan, where financial institutions are expanding services to encourage households to invest more of their substantial cash reserves, estimated at $7.5 trillion, amidst rising inflation. The popularity of NISA (Nippon Individual Savings Accounts) has surged, especially following the expansion of Japan’s tax-free investment program this year, boosting the local stock market.

Earlier this year, MUFG took a 15% stake in WealthNavi. Before news of the deal, the Tokyo-based robo-adviser, which went public in 2020, had a market capitalization of ¥62.8 billion.