SoftBank will acquire ABB's Robotics arm

ABB Ltd on Wednesday said it will sell its Robotics division to Japan's SoftBank Group Corp for an enterprise value of USD5.38 billion, expanding SoftBank's footprint in artificial intelligence-powered automation.

The Zurich-based electrical engineering company said the divestment reflects the "long-term strengths" of its robotics business and will create "immediate value" for shareholders.

ABB had previously considered spinning off the unit as a separately listed company but said SoftBank's offer provided a more attractive alternative.

The agreement, approved by both companies' boards, is expected to close in mid-to-late 2026, subject to regulatory approvals in the EU, China and US. ABB will report the division as a discontinued operation, starting from the fourth quarter of 2025.

ABB's robotics business employs about 7,000 people and generated USD2.3 billion in revenue in 2024, or roughly 7% of ABB's total sales, with an operational earnings before interest, tax and amortisation margin of 12%. It designs and manufactures industrial, collaborative, and autonomous robots used across manufacturing, logistics, and electronics sectors.

Upon completion, ABB expects a non-operational pretax gain of about USD2.4 billion and cash proceeds of around USD5.3 billion, net of transaction costs. The company estimated related cash tax outflows of between USD400 million and USD500 million.

ABB Chair Peter Voser said: "SoftBank's offer has been carefully evaluated by the board and executive committee and compared with our original intention for a spin-off. It reflects the long-term strengths of the division, and the divestment will create immediate value for ABB shareholders."

He added that ABB will deploy proceeds in line with its capital allocation principles, maintaining focus on its core electrification and automation businesses.

Chief Executive Officer Morten Wierod said the deal would provide a strong future for the robotics unit. "SoftBank will be an excellent new home for the business and its employees," he said.

"The combination of ABB's leading technology and industry expertise with SoftBank's capabilities in AI and next-generation computing will allow the business to strengthen and expand its position as a technology leader."

SoftBank said the acquisition supports its broader "physical AI" strategy; integrating artificial intelligence with robotics to advance automation.

"SoftBank's next frontier is physical AI," said SoftBank Chair & CEO Masayoshi Son. "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."

Following the disposal, ABB will reorganise its structure into three business areas. The Machine Automation division, currently part of Robotics & Discrete Automation, will join the Process Automation division.

As part of the restructuring, Sami Atiya, president of Robotics & Discrete Automation and a member of ABB's executive committee, will step down at the end of 2025 and leave the company in 2026 after serving as a strategic adviser during the carve-out.

CEO Wierod praised Atiya's contribution: "Sami has played an instrumental role in building a robotics business that covers everything from industrial robots to state-of-the-art collaborative and autonomous mobile robots. We thank him for his outstanding contribution to ABB's success."