SoftBank Group has announced an agreement to purchase the robotics division of Swiss engineering company ABB for $5.4 billion. The acquisition is a significant move to expand SoftBank's investments in artificial intelligence and automation, pending global regulatory approval.
For ABB, the sale marks a change in strategy, as the company will no longer pursue a previously planned spin-off of its robotics unit into a separately listed entity. The deal is expected to provide substantial value to ABB's shareholders.
Key Takeaways
- SoftBank Group has agreed to buy ABB's robotics division in a deal valued at $5.4 billion.
- The acquisition is central to SoftBank's strategy to advance in what it calls "Physical AI."
- ABB has canceled its plans to spin off the robotics business as a separate publicly traded company.
- The transaction is subject to regulatory reviews and approvals in various global markets.
Details of the Transaction
SoftBank Group confirmed on Monday its intention to acquire the robotics business from ABB, a prominent player in global engineering and automation. The all-cash transaction is valued at $5.4 billion and represents one of SoftBank's largest recent acquisitions in the technology sector.
According to a statement from ABB, the company anticipates receiving approximately $5.3 billion in cash proceeds from the sale. The deal is expected to incur separation costs of around $200 million, with about half of that amount already factored into ABB's financial guidance for 2025.
The agreement is contingent upon receiving clearance from regulatory bodies worldwide. Both companies will work through the necessary approval processes before the transaction can be finalized. This move effectively ends ABB's exploration of an initial public offering (IPO) for its robotics division, a path it had been considering.
SoftBank's Vision for Physical AI
The acquisition aligns with the long-term vision of SoftBank's founder, Masayoshi Son, who aims to position the Japanese conglomerate at the forefront of the artificial intelligence revolution. Son has emphasized a focus on "Physical AI," which involves integrating advanced AI with physical robotics to perform tasks in the real world.
"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," Masayoshi Son stated.
Son has also promoted the concept of Artificial Super Intelligence (ASI), which he defines as AI that is 10,000 times more intelligent than humans. This ambitious goal drives SoftBank's investment strategy across various technology domains.
What is Artificial Super Intelligence (ASI)?
As defined by Masayoshi Son, Artificial Super Intelligence (ASI) is a theoretical form of AI that would possess intelligence far surpassing that of the brightest and most gifted human minds. The concept envisions an AI capable of cognitive functions at a level 10,000 times greater than human capacity.
A Portfolio of AI and Robotics Investments
This acquisition of ABB Robotics adds a major operational unit to SoftBank's already extensive portfolio of technology investments. The company holds a significant stake in chip designer Arm, a crucial player in the hardware that powers AI. SoftBank is also a major investor in OpenAI, the research and deployment company behind models like ChatGPT.
SoftBank's other robotics-related holdings include:
- AutoStore Holdings: A company specializing in automated warehouse and fulfillment systems.
- Agile Robots: A startup developing intelligent and flexible robotic solutions.
These investments show a clear pattern of building an ecosystem around AI, from the underlying chip technology to software and now, advanced physical robotics.
SoftBank's History in Robotics
This is not SoftBank's first major foray into the robotics industry. In 2012, the company acquired a majority stake in Aldebaran, a French robotics firm. This partnership led to the launch of the humanoid robot known as Pepper in 2014. While Pepper gained initial media attention, the project did not achieve commercial success and was ultimately considered a failure. The acquisition of ABB's established and successful robotics division signals a renewed and more focused commitment to the sector.
ABB's Strategic Pivot
The sale represents a significant strategic shift for ABB. Under the leadership of CEO Morten Wierod, who took the role in August 2024, the company had been actively preparing to separate its robotics unit. The plan was to list the division as an independent company to unlock its value for shareholders.
However, the direct sale to SoftBank was determined to be a more immediate and certain path to achieving that goal. In its official statement, ABB noted that the sale "will create immediate value to ABB shareholders."
The company also clarified its plans for the substantial cash infusion from the deal. ABB announced it will allocate the proceeds from the sale "in line with its well-established capital allocation principles." This typically involves a combination of reinvesting in the core business, funding strategic acquisitions, and returning capital to shareholders through dividends or share buybacks.
The move allows ABB to streamline its operations and focus on its other core business areas, including electrification, motion, and process automation, while realizing a significant financial return on its successful robotics division.