BY Richard Summerfield
In a move designed to bolster its position in the artificial intelligence (AI) space, SoftBank Group has announced it is to acquire the robotics division of Swiss engineering firm ABB for $5.4bn.
The deal, which is subject to regulatory approvals and further customary closing conditions, is expected to close in mid to late 2026.
Upon closing of the deal, for ABB, the divestment will result in a non-operational pre-tax book gain of approximately $2.4bn with expected cash proceeds, net of transaction costs, of approximately $5.3bn. The expected separation costs related to the divestment are approximately $200m, about half of which was already included in the company’s 2025 guidance. ABB’s current best estimate of the transaction-related cash tax outflows in respect of the local business carve-out is in the range of $400-$500m.
As a result of the deal, ABB has abandoned its original decision to spin off and separately list its industrial automation business. The company’s robotics division has experienced struggling sales and falling profitability in recent years amid increasing competition. ABB’s robotics division, which employs 7000 people, generated sales of $2.3bn last year, around 7 percent of ABB’s total revenues.
“SoftBank’s offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off,” said Peter Voser, chairman of ABB. “It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders. ABB will use the proceeds from the transaction in line with its well-established capital allocation principles. Our ambitions for ABB are unchanged and we will continue to focus on our long-term strategy, building on our leading positions in electrification and automation.”
“SoftBank will be an excellent new home for the business and its employees,” said Morten Wierod, chief executive of ABB. “ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank’s robotics offering can best shape this era together. ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics and next-generation computing. This will allow the business to strengthen and expand its position as a technology leader in its field.”
“SoftBank’s next frontier is Physical AI,” said Masayoshi Son, chairman and chef executive of SoftBank Group. “Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics - driving a groundbreaking evolution that will propel humanity forward.”
News: SoftBank to buy ABB's robot business for $5.4 billion in push to merge AI and robotics