Swiss industrial technology group ABB has agreed to sell its pioneering robotics division to Japan’s SoftBank Group in a landmark $5.4 billion deal, signaling a strategic realignment for both global giants. The cash transaction redirects ABB’s focus squarely onto its core electrification and automation businesses while massively accelerating SoftBank’s ambitious push into what it terms “Physical AI,” the fusion of advanced robotics with next-generation artificial intelligence.
This acquisition marks a significant pivot for both companies and the wider automation industry. For ABB, the sale provides a more immediate and substantial return for shareholders compared to its original plan of spinning off the robotics unit as a publicly listed entity. The move allows the Swiss firm to streamline its operations and double down on markets with greater synergy to its primary business lines. For SoftBank, acquiring one of the world’s leading robotics portfolios is a cornerstone of its strategy to dominate the next wave of technological evolution, aiming to combine sophisticated hardware with cutting-edge AI to create intelligent, adaptable machines that can operate in the physical world. The deal, subject to regulatory approvals, is expected to be finalized in the latter half of 2026.
A Calculated Pivot to Core Strengths
ABB’s decision to sell its robotics division, which generated $2.3 billion in revenue in 2024, stems from a strategic reassessment of its long-term goals. Company leadership concluded that there were minimal technological and business synergies between the robotics unit and its other major operations. The demand cycles and market dynamics for industrial robotics were seen as increasingly distinct from ABB’s core focus on electrification and process automation for heavy industry. ABB Chairman Peter Voser stated that the divestment creates “immediate value to ABB shareholders” and affirmed that the company’s ambitions remain unchanged, with a continued focus on its leading positions in electrification and automation. The proceeds from the sale will be allocated according to ABB’s established capital principles, which could include funding technological development and potential acquisitions in its core areas.
The company will undergo a significant restructuring following the sale. Starting in the fourth quarter of 2025, the robotics division will be classified as a discontinued operation. ABB will then consolidate into three business segments, absorbing its Machine Automation division into its Process Automation unit to create a more streamlined corporate structure. This move underscores a deliberate strategy to concentrate resources and expertise where they can generate the most value, moving away from the more disparate, high-growth robotics market to fortify its foundational industrial businesses.
SoftBank’s Vision for Physical AI
The acquisition is a powerful statement of intent from SoftBank and its founder, Masayoshi Son, who is aggressively positioning the company at the forefront of the AI revolution. Son has articulated a vision centered on “Physical AI,” where artificial intelligence transcends the digital realm to power intelligent physical systems. “SoftBank’s next frontier is Physical AI,” Son said, explaining the goal is to “fuse Artificial Super Intelligence and robotics” to drive a new stage of human progress. This strategy involves combining world-class hardware with sophisticated AI, and the acquisition of ABB’s robotics arm provides a crucial component of that hardware foundation.
SoftBank is not new to the robotics sector, having previously developed the humanoid robot Pepper and invested in other automation companies like AutoStore and Agile Robots. However, the purchase of a well-established industrial leader with a global footprint represents a massive escalation of its commitment. The move complements SoftBank’s other major AI-related investments, including a significant stake in OpenAI and chip designer Arm, creating a vertically integrated ecosystem of AI software, processing hardware, and now, advanced robotic platforms. This positions SoftBank to develop and deploy end-to-end AI solutions that can perceive, reason, and act in complex real-world environments like factories, warehouses, and eventually, public spaces.
The Acquired Robotics Powerhouse
A Diverse and Advanced Portfolio
SoftBank is acquiring a division with a rich history and a comprehensive product range. ABB Robotics is a global leader that has installed more than 500,000 robots across industries ranging from automotive and electronics to logistics and pharmaceuticals. Its portfolio is one of the most diverse in the industry, featuring a wide array of robotic solutions. This includes large 6-axis articulated robots for heavy-duty tasks like welding and material handling, high-speed Delta robots for picking and packing, and precise SCARA robots for small parts assembly.
The division also has a strong offering in collaborative robots, or “cobots,” designed to work safely alongside humans, as well as Autonomous Mobile Robots (AMRs) for logistics, a capability strengthened by its 2021 acquisition of ASTI Mobile Robotics. This breadth of technology, from massive industrial arms used in automotive body-in-white manufacturing to nimble cobots for intricate assembly, provides SoftBank with a versatile platform to embed its AI technologies. The unit employs approximately 7,000 people and has major R&D and manufacturing hubs in Sweden, China, and the United States.
Industry Context and Future Outlook
The transaction unfolds within a rapidly growing industrial automation market, which was valued at over $200 billion in 2022 and is projected to reach nearly $400 billion by 2029. This growth is driven by the global push for greater efficiency, the adoption of Industry 4.0 principles, and advancements in AI and IoT technologies. The acquisition places SoftBank in direct competition with other industrial automation giants like Fanuc, Yaskawa, Siemens, and Rockwell Automation.
The combination of ABB’s robust hardware and industry expertise with SoftBank’s AI prowess could reshape the competitive landscape. The future of automation is shifting from pre-programmed robots performing repetitive tasks to intelligent systems capable of autonomous decision-making and learning. By integrating advanced AI, these newly acquired robotic platforms could enable predictive maintenance, optimize production workflows in real-time, and handle a much wider variety of tasks with greater flexibility. As ABB CEO Morten Wierod noted, both companies share the belief that the world is “entering a new era of AI-based robotics,” and this partnership is designed to shape that future. The success of this integration will be a key factor in determining the next generation of industrial automation and whether SoftBank’s grand vision for Physical AI can be fully realized.
Financial Details and Leadership Transition
The $5.4 billion deal will yield approximately $5.3 billion in net cash proceeds for ABB after accounting for transaction costs. The company anticipates a non-operational pre-tax accounting gain of around $2.4 billion. However, ABB will also incur about $200 million in separation expenses and expects to make cash tax payments between $400 and $500 million related to the transaction.
A key leadership change will accompany the sale. Sami Atiya, the President of ABB’s Robotics & Discrete Automation division and a member of the Executive Committee, will leave the company by the end of 2026. He will step down from the Executive Committee at the end of 2025 but will continue in a strategic advisory role throughout 2026 to ensure a smooth transition of the robotics business to its new owner. Atiya was instrumental in building the division’s capabilities, particularly in expanding its portfolio to include collaborative and autonomous mobile robots powered by advanced software and AI solutions.