ABB has signed an agreement to divest its robotics division to SoftBank Group for an enterprise value of $5.375 billion and not pursue its earlier intention to spin off the business as a separately listed company.
The transaction is subject to regulatory approvals and further customary closing conditions and is expected to close in mid-to-late 2026.
Peter Voser, chairman of ABB, says: “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.
“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.”
Morten Wierod, ABB CEO, says: “SoftBank will be an excellent new home for the business and its employees. 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.
“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. This will allow the business to strengthen and expand its position as a technology leader in its field.”
Masayoshi Son, chairman and CEO of SoftBank Group, says: “SoftBank’s next frontier is Physical AI. 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.”
As a result of the signing of the agreement ABB will adjust its reporting structure and move to three business areas. As of the fourth quarter 2025, the Robotics division will be reported as Discontinued operations.
At the same time, the Machine Automation division, which together with ABB Robotics currently forms the Robotics & Discrete Automation business area, will become a part of the Process Automation business area.
Upon closing, the divestment will result in a non-operational pre-tax book gain of approximately $2.4 billion with expected cash proceeds, net of transaction costs, of approximately $5.3 billion.
The expected separation costs related to the divestment are approximately $200 million, about half of which was already included in our 2025 guidance.
ABB’s current best estimate of the transaction-related cash tax outflows in respect of the local business carve-out is in the range of $400-500 million.
ABB Robotics is a leader in its industry at the core of secular and future automation trends and as communicated previously, there are limited business and technology synergies between the ABB Robotics business and the remainder of ABB’s businesses, with different demand and market characteristics.
The ABB Robotics division has a workforce of approximately 7,000. With 2024 revenues of $2.3 billion it represented about 7 percent of ABB Group revenues and had an Operational EBITA margin of 12.1 percent.
