ABB has signed an agreement to sell its robotics business to SoftBank Group for $5.375 billion (approximately $5.4 billion), officially abandoning its previously planned standalone IPO. The transaction is subject to regulatory approval and is expected to close in the second half of 2026.

Strategic Shift From IPO To Full Sale

ABB initially planned to spin off its robotics division as an independent listed company. However, the group decided to proceed with a full divestment, aiming to unlock immediate shareholder value and simplify its business portfolio.

SoftBank’s Physical AI Vision

SoftBank Chairman and CEO Masayoshi Son stated that the company’s next strategic frontier is “Physical AI,” where artificial intelligence and robotics are deeply integrated. The acquisition is expected to combine global technologies and talent to advance the convergence of artificial general intelligence and robotics.

ABB’s Strategic Rationale

ABB Chairman Peter Voser said the board carefully evaluated both the IPO and acquisition options. He noted that SoftBank’s offer reflects the long-term value of the robotics business and delivers immediate value to shareholders.

ABB CEO Morten Wierod added that SoftBank is a strong strategic partner for the robotics unit and its employees. He emphasized that the combination of ABB’s industrial robotics expertise and SoftBank’s AI capabilities will help shape the next generation of intelligent automation.

Financial Impact And Business Restructuring

Following the transaction, ABB will reorganize its reporting structure into three core business areas. From Q4 2025, the robotics division will be classified as discontinued operations.

The deal is expected to generate around $5.3 billion in net cash proceeds and approximately $2.4 billion in non-operational pre-tax accounting gains. Transaction-related costs are estimated at about $200 million.

Robotics Business Overview

ABB employs around 7,000 people in its robotics division. In 2024, the unit generated $2.3 billion in revenue, accounting for about 7% of total group sales, with an operating EBITA margin of 12.1%.

SoftBank’s Expanding AI And Robotics Ecosystem

SoftBank Group has been actively expanding its AI and robotics investments, including large-scale AI infrastructure projects, enterprise AI platforms, and acquisitions in cloud-native and sustainable computing sectors.

Its strategy focuses on building an integrated ecosystem combining AI models, robotics platforms, and next-generation computing to accelerate industrial automation and intelligent systems development.