Explained: Why ABB Sold Its Robotics Business to SoftBank

Swiss industrial powerhouse ABB has reached an agreement to offload its Robotics division to Japan's SoftBank Group in a deal valued at US$5.4bn, moving away from previous intentions to list the business separately.

Subject to regulatory clearances, the sale is anticipated to complete during the middle to latter part of 2026, coinciding with Sami Atiya's exit from the company.

The agreement represents a notable strategic shift for both parties, with SoftBank viewing the purchase as fundamental to its Physical AI strategy.

"SoftBank's next frontier is Physical AI," says Masayoshi Son, Chairman & CEO of SoftBank Group.

"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 ground-breaking evolution that will propel humanity forward."

So what has prompted ABB to offload its highly regarded robotics operation at this juncture?

According to official communications from the company, ABB's board weighed SoftBank's proposal against the original plan for an independent spin-off, determining that selling the division would deliver more prompt value to shareholders.

"It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders," says 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."

The financial context

The deal will yield net cash of roughly US$5.3bn following transactional expenses, plus a non-operational pre-tax accounting gain of approximately US$2.4bn.

ABB anticipates separation expenses of around US$200m, with half of this amount already incorporated into its 2025 projections. The company also forecasts transaction-related tax payments of US$400-500m in cash.

The Robotics division, which presently has a workforce of approximately 7,000 employees, recorded revenues of US$2.3bn during 2024, accounting for roughly 7% of ABB's total turnover. Its operational EBITA margin stood at 12.1%.

Starting from the fourth quarter of 2025, the division will be classified as discontinued operations whilst ABB restructures into three business segments, with the Machine Automation division being absorbed into Process Automation.

'A new era of AI-based robotics'

ABB has recognised that minimal business and technological synergies exist between its Robotics division and its other operations, with company representatives pointing to the contrasting demand patterns and market dynamics between robotics and its primary business lines.

"ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank's robotics offering can best shape this era together," says Morten Wierod, CEO of ABB.

"ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank's state-of-the-art capabilities in AI, robotics and next-generation computing," he adds.

"This will allow the business to strengthen and expand its position as a technology leader in its field."

The acquisition represents yet another major addition to SoftBank's portfolio in 2025, following the Japanese company's purchase of a US$2bn stake in Intel during the summer months.

A change in leadership

Alongside the sale, Sami Atiya, President of Robotics & Discrete Automation and Executive Committee member, will leave ABB by the close of 2026.

Sami will exit the Executive Committee at year-end 2025 but will remain as a strategic adviser to assist with the Robotics business and separation process through 2026.

In his remarks, Morten acknowledges the contributions Sami has made and will continue to make whilst at ABB.

"Sami has played an instrumental role in building a robotics business that covers everything from industrial robots to state-of-the-art collaborative and autonomous mobile robots, backed by some of the most advanced software and AI solutions," he explains.

Sami's departure marks the end of nearly ten years at ABB, throughout which he positioned AI as a central value creator throughout the company.

ABB will allocate the sale proceeds in accordance with its established capital distribution principles whilst keeping its strategic emphasis on electrification and automation.