Japan’s SoftBank Group has struck a $5.4 billion deal to acquire ABB’s Robotics division, one of the world’s leading makers of industrial and collaborative robots. The deal, announced Wednesday, marks SoftBank’s boldest step yet into what CEO Masayoshi Son calls the era of “Physical AI,” where intelligent machines blend digital cognition with physical capability.
Masayoshi Son, the Chairman and CEO of SoftBank Group, said, “SoftBank’s new focus is on Physical AI. Along with ABB Robotics, we will bring together top technology and talent. Our goal is to combine advanced AI and robotics to create a change that helps all of humanity move forward.”
The deal is subject to regulatory approvals (EU, U.S., China, etc.) and customary closing conditions and is expected to close in mid-to-late 2026.
With this acquisition, ABB will adjust its reporting structure and move to three business areas. Starting in the fourth quarter of 2025, the Robotics division will be considered a separate part of the company and reported as discontinued operations.
Meanwhile, the Machine Automation division, which currently works with the ABB Robotics division under the Robotics & Discrete Automation area, will join the Process Automation area.
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 company has estimated that the costs of separating the business will be around $200 million, with half of that already included in their plans for 2025. They also expect to pay about $400 to $500 million in local taxes because of this change.
Peter Voser, the Chairman of ABB, said: “We have carefully looked at SoftBank’s offer. We compared it to our plan to spin off a part of our business. This offer shows the long-term strengths of our division, and selling it will provide immediate benefits to ABB shareholders. We will use the money from this sale according to our clear budget plans. Our goals for ABB remain the same, and we will keep focusing on our long-term strategy, strengthening our positions in electrification and automation.”
The ABB Robotics division has about 7,000 employees and is expected to earn $2.3 billion in revenue in 2024. This amount represents about 7 per cent of ABB’s total earnings and has an operational profit margin of 12.1 per cent.
SoftBank sees this as a move into “Physical AI” — combining AI, computing, and robotics hardware. For ABB shareholders, the deal yields immediate value and frees up capital for reinvestment, acquisitions, or returning capital to shareholders. The robotics division, under SoftBank, may be better positioned to scale with AI integration and access to SoftBank’s broader robotics / AI portfolio (e.g. SoftBank Robotics, AutoStore, etc.).
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