Insider Brief
- ABB will sell its Robotics division to SoftBank Group for a $5.375B enterprise value, abandoning a spin-off, with closing targeted for mid–late 2026 pending regulatory approvals.
- ABB expects a ~$2.4B pre-tax book gain, ~$5.3B net cash proceeds, ~$200M separation costs and $400–$500M cash taxes, and will reclassify Robotics as discontinued operations in Q4’25 while moving Machine Automation into Process Automation.
- Strategically, ABB doubles down on electrification and automation as the divested unit (2024 revenue $2.3B, 7% of sales, 12.1% operational EBITA margin) aligns with SoftBank’s ASI push across AI chips, robots, data centers, and energy.
ABB will sell its robotics division to SoftBank Group for $5.375 billion, abandoning a previously floated plan to spin off the business into a separate company. The deal—subject to regulatory approvals and other customary conditions—is expected to close in mid-to-late 2026, ABB noted in its announcement.
“SoftBank’s offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off,” Peter Voser, Chairman of ABB, said in a statement. “It reflects the long-term strengths of the division, and the divestment will create immediate value to ABB shareholders.”
Voser said ABB will continue to focus on its electrification and automation strategies and use the proceeds according to its usual capital allocation protocols.
“SoftBank will be an excellent new home for the business and its employees,” ABB CEO Morten Wierod added. “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.”
As part of the change, the Switzerland-based ABB will overhaul its reporting structure and move to three business areas. Beginning in the fourth quarter of 2025, the Robotics division will be classified as discontinued operations—an accounting step that separates the unit’s results from ABB’s continuing businesses—while the Machine Automation division, now grouped with Robotics under Robotics & Discrete Automation, will shift into the Process Automation business area.
Softbank noted the new entity, which has not been named, will be a holding company and a subsidiary of the company.
Upon closing, ABB expects to record a non-operational pre-tax book gain of about $2.4 billion. It projects net cash proceeds of roughly $5.3 billion after transaction costs, and separation costs of about $200 million, roughly half of which are already reflected in 2025 guidance. ABB currently estimates transaction-related cash tax outflows tied to local business carve-outs will range from $400 million to $500 million.
ABB underscored that Robotics, while a leader in its field, differs in demand patterns and market characteristics from the company’s other businesses. In 2024, the division generated $2.3 billion of revenue—about 7% of ABB Group sales—and posted an operational EBITA margin of 12.1%. The unit supplies robots and software used for manufacturing, logistics, and other automation tasks.
SoftBank Group noted in its statement that the “Information Revolution” has entered an AI-led phase and is making the realization of artificial superintelligence its core mission. To that end, it’s investing across four pillars—AI chips, AI robots, AI data centers, and energy—while backing leading generative-AI companies.
The companies did not detail specific post-close integration plans but emphasized continuity for customers and employees. ABB said its broader strategy is unchanged as it doubles down on electrification and automation, and that it views the sale as removing a structural mismatch rather than a retreat from automation markets.
ABB’s shares trade on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). ABB said the disclosure was made pursuant to the EU Market Abuse Regulation.
