Japan’s SoftBank Group (SBG) said it reached a definitive agreement with Swiss conglomerate ABB Ltd to acquire ABB’s robotics business for $5.375 billion.
ABB said it will not pursue its earlier intention to spin off the robotics business as a separately listed company.
The ABB Robotics division has a workforce of 7,000. With 2024 revenues of $2.3 billion, it represented 7% of ABB Group revenues.
SoftBank Group said: “The center of the ‘Information Revolution’ has evolved from personal computers, the Internet, and broadband to smartphones, and has now entered a new phase led by artificial intelligence (AI).
“In this context, SBG has declared its mission to realize artificial super intelligence (ASI) for the advancement of humanity.
“As part of this mission, SBG is actively investing and expanding its businesses in four essential areas: (i) AI chips, (ii) AI robots, (iii) AI data centers, and (iv) energy, as well as investing in companies at the forefront of generative AI.
“The acquisition is part of this strategy and is expected to significantly strengthen SBG’s AI robotics business.
“ABB’s robotics business is a globally recognized brand, known for its reliability and high performance, supported by extensive sales channels and customer relationships.
“SBG is well-positioned to reignite the robotics business’s growth, particularly through investment in cutting-edge technologies such as AI.
“Following the acquisition, the robotics platform, expertise, and existing local footprint will be complemented by the technological foundations of SBG’s existing robotics-related investments — SoftBank Robotics Group Corp., Berkshire Grey, Inc., AutoStore Holdings Ltd., Agile Robots SE, and Skild AI, Inc., among others — to accelerate innovation in AI robotics and drive progress and growth toward the realization of ASI.”
SoftBank Group chairman & CEO Masayoshi Son said: “SoftBank’s next frontier is Physical AI. 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.”
ABB CEO Morten Wierod said: “SoftBank will be an excellent new home for the business and its employees.
“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.”
ABB chairman 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 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.”
ABB added: “Upon closing, the divestment will result in a non-operational pre-tax book gain of approximately $2.4 billion with expected cash proceeds, net of transaction costs, of approximately $5.3 billion.
“The expected separation costs related to the divestment are approximately $200 million, about half of which was already included in our 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 – $500 million.
“ABB Robotics is a leader in its industry at the core of secular and future automation trends and as communicated previously, there are limited business and technology synergies between the ABB Robotics business and the remainder of ABB’s businesses, with different demand and market characteristics.”
The acquisition has been approved by SoftBank’s board of directors and remains subject to customary regulatory approvals including in the European Union, China and the United States, and the satisfaction of other customary closing conditions.
SoftBank expects the acquisition to close in mid-to-late 2026.