October 09, 2025 [Storage Terminals Magazine]- ABB has announced an agreement to divest its Robotics division to SoftBank Group Corp. for an enterprise value of $5.375 billion, electing not to pursue its earlier intention to spin off the business as a separately listed company. The transaction, subject to regulatory approvals and customary closing conditions, is expected to complete in mid-to-late 2026.
Peter Voser, chairman of ABB, stated that SoftBank’s offer has been carefully evaluated by the board and executive committee and compared with the original spin-off intention. He characterised the transaction as reflecting the long-term strengths of the division, whilst the divestment will create immediate value for ABB shareholders. Voser confirmed that ABB will utilise proceeds from the transaction in accordance with its established capital allocation principles.
The chairman emphasised that ABB’s ambitions remain unchanged, with continued focus on long-term strategy building upon leading positions in electrification and automation. This statement signals that the Robotics divestment represents portfolio optimisation rather than fundamental strategic redirection.
Morten Wierod, CEO of ABB, expressed confidence that SoftBank will provide an excellent home for the business and its employees. He noted that ABB and SoftBank share perspectives that the world is entering a new era of AI-based robotics, with belief that the division and SoftBank’s robotics offerings can best shape this era through combination.
Wierod stated that ABB Robotics will benefit from combining its leading technology and deep industry expertise with SoftBank’s capabilities in artificial intelligence, robotics, and next-generation computing. This integration is expected to allow the business to strengthen and expand its position as a technology leader in its field.
Masayoshi Son, chairman and CEO of SoftBank Group Corp., characterised Physical AI as SoftBank’s next frontier. He stated that together with ABB Robotics, SoftBank will unite world-class technology and talent under a shared vision to fuse artificial superintelligence and robotics, driving what he described as a groundbreaking evolution that will propel humanity forward.
This positioning reflects SoftBank’s broader investment thesis regarding the convergence of artificial intelligence and robotics, with ABB Robotics representing a substantial acquisition supporting this strategic direction.
The $5.375 billion enterprise value will translate to expected net cash proceeds of approximately $5.3 billion after transaction costs. Upon closing, the divestment will result in a non-operational pre-tax book gain of approximately $2.4 billion, reflecting the difference between enterprise value and net book value of the divested business.
Expected separation costs related to the divestment total approximately $200 million, with about half already included in ABB’s 2025 guidance.
ABB’s current estimate of transaction-related cash tax outflows relating to local business carve-out arrangements ranges between $400 million and $500 million.
Following the agreement signing, ABB will adjust its reporting structure, moving to three business areas. From the fourth quarter of 2025, the Robotics division will be reported as discontinued operations. Simultaneously, the Machine Automation division, which currently forms part of the Robotics & Discrete Automation business area alongside ABB Robotics, will transfer to the Process Automation business area.
This restructuring reflects ABB’s strategic focus on its core electrification and automation businesses following the separation of the Robotics division.
ABB Robotics is positioned as a leader in its industry, operating at the core of secular automation trends. As previously communicated by ABB, limited business and technology synergies exist between ABB Robotics and the remainder of ABB’s businesses, with different demand and market characteristics supporting the separation logic.
The division employs approximately 7,000 personnel globally. In 2024, ABB Robotics generated revenues of $2.3 billion, representing approximately 7 percent of ABB Group revenues, with an operational EBITA margin of 12.1%.
The industrial robotics sector is experiencing transformation driven by advancing artificial intelligence capabilities, improved sensor technologies, enhanced computing power, and expanding applications beyond traditional automotive and electronics manufacturing. The integration of AI technologies enables more autonomous operation, adaptive behaviour, and simplified programming, potentially accelerating robotics adoption across diverse industries.
SoftBank’s acquisition reflects conviction that the convergence of advanced AI with robotics hardware and control systems will create substantial value and market opportunities. The company’s investment strategy emphasises technologies positioned to benefit from long-term secular trends, with robotics representing a core focus area.
ABB’s decision to divest rather than pursue the previously announced spin-off reflects an assessment that the SoftBank offer delivers superior value realisation for shareholders compared with establishing an independent listed company. Spin-off transactions create value through improved strategic focus and operational autonomy but may require time for independent entities to establish market valuations reflecting underlying business quality.
The divestment provides immediate cash proceeds that ABB can deploy according to capital allocation priorities, which may include organic investment, strategic acquisitions in core businesses, debt reduction, or shareholder returns through dividends and share repurchases.
