On October 8, global technology giant ABB Group officially announced an agreement with Japan’s SoftBank Group to sell its leading robotics business for an enterprise value of US$5.375 billion. This decision marks a significant strategic shift for ABB and puts an end to its earlier plan to spin off the business and list it publicly. The transaction is expected to close in mid-to-late 2026, subject to regulatory approvals and other customary closing conditions.
This transaction is not only one of the most notable mergers and acquisitions in the global industrial automation sector in recent years, but is also seen by the industry as a historic marriage between a traditional industrial robotics giant and a leading force in artificial intelligence (AI). It heralds the accelerated arrival of a new era of automation driven by “physical AI,” a trend that aligns with the vision outlined in the Future of Manufacturing report by the World Economic Forum.
For ABB, this divestiture is a decisive step in its strategy to continuously focus on its core electrification and automation businesses and optimize its asset portfolio. ABB Chairman Peter Voser said in a statement: “The Board of Directors and Executive Committee carefully evaluated SoftBank’s offer and compared it with our original intention for a spin-off. The offer fully reflects the long-term strength of the Robotics business, and the sale will create immediate and substantial value for ABB shareholders.”
ABB CEO Morten Wierod further elaborated on the strategic rationale for the sale. He noted that ABB’s Robotics business has limited technological and commercial synergies with the rest of the group, and faces different market demands and development cycles. ABB’s Robotics division’s latest figures for 2024 indicate revenue of approximately $2.3 billion, representing approximately 7% of the group’s total revenue, with an operating EBITDA margin of 12.1%. The transaction will enable ABB to better focus its resources and strengthen its leadership in electrification and process automation.
According to the agreement, upon completion of the transaction, ABB expects to receive approximately $5.3 billion in net cash proceeds and generate approximately $2.4 billion in non-operating pre-tax book gains. The company plans to use the substantial proceeds, in accordance with its established capital allocation principles, for investment in growth, deleveraging, or shareholder returns.
This transaction also triggers corresponding adjustments to ABB’s internal structure. Starting in the fourth quarter of 2025, the Robotics business will be classified as a “discontinued operation.” The Machine Automation Division, which previously formed part of the Robotics and Discrete Automation business area, will be integrated into the Process Automation business area. This realignment will streamline ABB into three business areas.
As part of this restructuring, Sami Atiya, a highly decorated executive who has led the Robotics and Discrete Automation business for nearly a decade, will depart ABB in conjunction with the divestiture. He will step down from the Group Executive Committee at the end of 2025 and continue to support the smooth transition of the Robotics business as a strategic advisor in 2026. Ma Teng highly praised Sami’s outstanding contributions in building ABB’s comprehensive product portfolio, from industrial robots to collaborative robots, autonomous mobile robots, and advanced software and AI solutions.
If ABB’s sale is based on a strategic contraction of focus, SoftBank’s acquisition is based on a grand strategy of integration. SoftBank Group Chairman and CEO Masayoshi Son made no secret of his vision for the future: “SoftBank’s next frontier is ‘physical AI.’ By joining forces with ABB Robotics, we will bring together world-class technology and talent around our shared vision: to fuse ‘artificial super intelligence’ and robotics to drive a disruptive revolution that will lead humanity forward.”
This statement clearly reveals SoftBank’s intentions. SoftBank views ABB Robotics not simply as a traditional industrial hardware manufacturer, but rather as a crucial physical vehicle and application platform for realizing its AI strategy. SoftBank has long invested extensively in AI, IoT, and robotics startups globally through its massive Vision Fund. While its portfolio previously included well-known robotics companies like Boston Dynamics (later sold), the acquisition of an industry giant like ABB Robotics signals SoftBank’s move from venture capital to deep industry integration.
ABB Robotics, one of the world’s “Four Major Robotics” companies, boasts a strong technological foundation, extensive industrial application experience, and a global customer network. Its product line covers a wide range of sectors, from automotive manufacturing and electronics assembly to logistics and warehousing. For SoftBank, acquiring such a mature platform will enable its cutting-edge AI algorithms, next-generation computing power, and data analytics technologies to quickly find an industrial “backbone,” avoiding the lengthy process of building a hardware ecosystem from scratch.
The combination of the two is expected to break the current separation between hardware and software in the robotics industry. In the future, ABB robots equipped with SoftBank’s advanced AI brains may no longer simply be mechanical arms executing pre-programmed tasks. Instead, they will become intelligent entities capable of sensing their environment, learning autonomously, and collaborating more naturally with humans, enabling them to function in more complex and dynamic scenarios.
