ABB to Sell Robotics Unit to SoftBank for $5.375 Billion

ABB
Image Courtesy: ABB

ABB has reached a deal to sell its Robotics division to Japan’s SoftBank Group for an enterprise value of $5.375 billion. The transaction, expected to close between mid and late 2026, marks a shift from ABB’s earlier plan to spin off the unit as an independent public company.

The sale is subject to regulatory approval and other standard conditions. Once completed, ABB will report the Robotics division as discontinued operations starting in the fourth quarter of 2025. The remaining part of the Robotics & Discrete Automation segment — the Machine Automation division — will move under ABB’s Process Automation business.

Peter Voser, ABB Chairman, said the board and executive team thoroughly reviewed the SoftBank offer and determined it offered greater value for shareholders than a public listing. “The sale underscores the strength of the Robotics business and aligns with our capital allocation strategy,” Voser noted.

ABB CEO Morten Wierod added that SoftBank would provide strong support for the Robotics division’s future. “Both companies see the rise of AI-powered robotics as a major shift. Combining ABB’s industrial robotics expertise with SoftBank’s capabilities in AI and advanced computing will help accelerate innovation in this space,” Wierod said.

SoftBank founder and CEO Masayoshi Son described the deal as a step forward in the company’s focus on “Physical AI” — the merging of artificial intelligence and robotics. “Together with ABB Robotics, we aim to drive the next phase of intelligent automation,” Son said.

The transaction is expected to generate a pre-tax book gain of around $2.4 billion for ABB. Net cash proceeds after transaction costs are estimated at $5.3 billion. ABB expects related tax costs of between $400 and $500 million, along with separation expenses of about $200 million — half of which were already included in 2025 financial guidance.

ABB Robotics employs approximately 7,000 people. In 2024, the division generated $2.3 billion in revenue — about 7% of ABB’s total — and posted an operational EBITA margin of 12.1%. ABB will continue to focus on its core strengths in electrification and automation, sectors it says are critical to enabling more sustainable and efficient industrial operations.

ABB has reached a deal to sell its Robotics division to Japan’s SoftBank Group for an enterprise value of $5.375 billion. The transaction, expected to close between mid and late 2026, marks a shift from ABB’s earlier plan to spin off the unit as an independent public company.

The sale is subject to regulatory approval and other standard conditions. Once completed, ABB will report the Robotics division as discontinued operations starting in the fourth quarter of 2025. The remaining part of the Robotics & Discrete Automation segment — the Machine Automation division — will move under ABB’s Process Automation business.

Peter Voser, ABB Chairman, said the board and executive team thoroughly reviewed the SoftBank offer and determined it offered greater value for shareholders than a public listing. “The sale underscores the strength of the Robotics business and aligns with our capital allocation strategy,” Voser noted.

ABB CEO Morten Wierod added that SoftBank would provide strong support for the Robotics division’s future. “Both companies see the rise of AI-powered robotics as a major shift. Combining ABB’s industrial robotics expertise with SoftBank’s capabilities in AI and advanced computing will help accelerate innovation in this space,” Wierod said.

SoftBank founder and CEO Masayoshi Son described the deal as a step forward in the company’s focus on “Physical AI” — the merging of artificial intelligence and robotics. “Together with ABB Robotics, we aim to drive the next phase of intelligent automation,” Son said.

The transaction is expected to generate a pre-tax book gain of around $2.4 billion for ABB. Net cash proceeds after transaction costs are estimated at $5.3 billion. ABB expects related tax costs of between $400 and $500 million, along with separation expenses of about $200 million — half of which were already included in 2025 financial guidance.

ABB Robotics employs approximately 7,000 people. In 2024, the division generated $2.3 billion in revenue — about 7% of ABB’s total — and posted an operational EBITA margin of 12.1%. ABB will continue to focus on its core strengths in electrification and automation, sectors it says are critical to enabling more sustainable and efficient industrial operations.