SoftBank Buys ABB's Robotics Division For $5.375 Billion After Spin-Off Pivot

The recent advancements made in artificial intelligence (AI) technology aren’t restricted to human-based use cases alone—they’re enhancing the global robotics sector as well, enhancing a wide range of applications and introducing new capabilities.

This is why SoftBank Group Corp. is making moves to get in on the action by announcing it has entered into a definitive agreement to purchase ABB’s robotics business for an enterprise value of $5.375 billion.

ABB, a global technology leader in electrification and automation, initially intended to spin out its robotics division into a separately listed company, but pivoted those plans after carefully evaluating SoftBank’s offer.

While the acquisition plans have been approved by SoftBank Group’s Board of Directors and ABB’s Board and Executive Committee, it’s subject to global regulatory approvals—including in the European Union, China, and the United States—and customary closing conditions.

As per both companies, the deal is expected to close in mid-to-late 2026.

“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,” said Peter Voser, ABB’s Chairman. “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.”

SoftBank’s offer comes as the company is actively investing and expanding its businesses in four essential areas, which span AI chips; AI robots; AI data centers; and energy.

It’s also keen on investing in companies at the forefront of GenAI—SoftBank is a major part of OpenAI’s Stargate project. It also recently bought shares worth around $6.6 billion from OpenAI, as part of a consortium that included other investors. However, the share sale drove OpenAI’s valuation to $500 billion, making it the world’s most-valued, privately-owned company.

“SoftBank’s next frontier is Physical AI,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp. “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.”
 

The deal is expected to strengthen SoftBank’s AI robotics business, and further investments made by SoftBank will reignite the robotics business’s growth, particularly through investment in cutting-edge technologies such as AI.

The acquisition method will see ABB spinning out its robotics business into a newly established holding company. This means that ABB’s initial plan will come to fruition, albeit for a short while, as SoftBank will buy all the shares of this newly formed holding company through one of its subsidiaries for a total purchase price of $5.375 billion, where the holding company will become a subsidiary of SoftBank.

As part of the agreement, ABB’s robotics division’s operations will be reported as “Discontinued” as of Q4-2025. Additionally, ABB’s Machine Automation division, which, together with ABB Robotics, forms the company’s Robotics & Discrete Automation business area, will merge with its Process Automation business area.

Currently, ABB’s robotics division has a workforce of approximately 7,000 employees, and its 2024 revenue totaled $2.3 billion, which represented about 7% of its overall revenue.

Just last month, ABB Robotics invested in California-based LandingAI to enhance and integrate its vision AI capabilities into ABB Robotics’ own software suite, and make it faster, more intuitive, and accessible to a broader range of users.

“The demand for AI in robotics is driven by the need for greater flexibility, faster commissioning cycles and a shortage of the specialist skills needed to program and operate robots,” said Sami Atiya, President of ABB Robotics & Discrete Automation, at the time. “Our collaboration with LandingAI will mean installation and deployment time is done in hours instead of weeks, allowing more businesses to automate smarter, faster and more efficiently.”

Do you think this move will help SoftBank become a leader in the robotics industry?

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