ABB has announced a significant agreement to sell its Robotics division to Japan’s SoftBank Group Corp. This deal is valued at $5.375 billion. The transaction signifies a strategic shift for ABB, which previously intended to spin off the Robotics unit into a separate entity. Regulatory approvals are required, and the deal is expected to finalize by mid-to-late 2026.
Details of the Acquisition
Peter Voser, Chairman of ABB, expressed confidence in the deal, emphasizing that it reflects the long-term strengths of the Robotics division. He stated, “The divestment will create immediate value for ABB shareholders.” The proceeds from the agreement will be aligned with ABB’s capital allocation principles.
ABB’s CEO Morten Wierod highlighted the synergy between ABB Robotics and SoftBank, particularly in the realm of artificial intelligence and robotics. Both companies share a vision for advancing AI-based robotics solutions. This partnership aims to strengthen ABB Robotics’ position as a leader in the field.
Financial Implications
Upon closing the transaction, ABB anticipates a pre-tax book gain of around $2.4 billion. The net cash proceeds, after transaction costs, are projected to be approximately $5.3 billion. ABB also expects separation costs related to the divestment to be around $200 million. In addition, the company estimates that transaction-related cash tax outflows will range between $400 and $500 million.
Performance Metrics
- Total workforce in ABB Robotics: Approximately 7,000 employees
- Estimated revenues for 2024: $2.3 billion
- Share of ABB Group revenues represented by Robotics: About 7%
- Operational EBITA margin of ABB Robotics: 12.1%
ABB’s Future Direction
The divestment will lead to changes in ABB’s reporting structure, transitioning the Robotics division into discontinued operations by the fourth quarter of 2025. The Machine Automation division will merge into the Process Automation business area.
ABB continues to focus on its core strengths in electrification and automation. The company aims to enable sustainable and resource-efficient industrial solutions. With a history exceeding 140 years, ABB employs around 110,000 people globally and maintains a commitment to technological innovation.
Conclusion
This acquisition marks a pivotal moment for both companies as they embark on new opportunities in the evolving field of robotics and AI. SoftBank’s Chairman & CEO, Masayoshi Son, noted that the collaboration could drive innovations that significantly benefit humanity.
