ABB Sells Robotics Division to SoftBank for $53.8 Billion, Paving Way for AI-Driven Future

Swiss engineering giant ABB has announced an agreement to sell its robotics division to Japan's SoftBank Group for approximately $53.8 billion. This strategic move signifies ABB's commitment to concentrating on its core competencies in electrification and automation, while also creating direct value for its shareholders. The deal awaits regulatory approval and meeting customary conditions, with completion expected in mid-2026.

The decision to sell rather than spin-off the robotics division comes after a thorough evaluation by ABB's board and executive committee. Chairman Peter Voser emphasized that the offer from SoftBank reflects the long-term potential of the robotics business and will provide "immediate value" to shareholders. This allows ABB to deploy the proceeds in line with its established capital allocation principles, furthering its long-term strategy in electrification and automation.

For SoftBank, the acquisition marks a significant advancement in its artificial intelligence ambitions, particularly the development of "Physical AI." Masayoshi Son, the Chairman and CEO of SoftBank, outlined that the integration of superintelligent AI with robotics will propel a groundbreaking revolution. ABB's leading industrial technology and expertise in robotics will complement SoftBank's existing capabilities, aspiring to lead in the coming AI-driven robotics era.

The transaction details reveal an enterprise valuation of $53.75 billion for ABB's robotics division. After accounting for transaction costs, ABB anticipates approximately $53 billion in cash proceeds and predicts around $24 billion in non-operating, pre-tax book gains. Moreover, separation costs related to the transaction are estimated at about $200 million, with projected cash tax expenses ranging from $400 to $500 million.

From the fourth quarter of 2025, ABB will report the financial results of its discontinued robotics operations separately. The Machines Automation segment, previously part of the Robotics & Discrete Automation division, will be integrated into the Process Automation business area.

This divestment underscores ABB's strategic rationale that the robotics business exhibits limited synergies with other company areas and operates in distinct markets with different characteristics. With around 7,000 employees and revenues of $23 billion in 2024 – representing roughly 7% of ABB's total earnings – the robotics division has an operational EBITA margin of 12.1%. Ultimately, shedding this segment allows ABB to focus resources and managerial attention more effectively on sectors with greater synergies, aligning with its "Engineered to Outrun" performance framework.