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SoftBank To Acquire ABB Robotics for $5.4 Billion in Push Into Physical AI

ABB chose a sale to realize immediate cash for shareholders, refocusing on higher‑margin electrification and automation.

Overview

  • SoftBank and ABB signed an agreement valuing the robotics unit at about $5.375–$5.4 billion, with closing targeted for mid‑to‑late 2026 pending multi‑jurisdictional regulatory approvals.
  • ABB expects roughly $5.3 billion in cash proceeds, an estimated non‑operational pre‑tax book gain of about $2.4 billion at closing, around $200 million in separation costs, and $400–$500 million in transaction‑related cash tax outflows.
  • ABB will discontinue the planned spin‑off, report the division as discontinued operations starting in Q4 2025, and deploy proceeds under its capital allocation principles including investment, acquisitions, dividends, and buybacks.
  • ABB Robotics employs about 7,000 people, generated approximately $2.3 billion in 2024 revenue (around 7% of ABB Group) with a reported 12.1% Operational EBITA margin.
  • SoftBank frames the purchase as a core step toward “Physical AI” and intends to fold ABB Robotics into its broader AI and robotics holdings, with division head Sami Atiya expected to exit upon closing.