On Monday, SoftBank Group announced a significant acquisition, agreeing to purchase the robotics division of Swiss engineering firm ABB for $5.4 billion. This move aims to enhance SoftBank’s position in the artificial intelligence sector. The acquisition is pending global regulatory approval.
Key Details of the Acquisition
This transaction also implies that ABB will not pursue a spin-off of its robotics unit as a separate entity. Masayoshi Son, founder of SoftBank, emphasized the importance of this acquisition in a statement, highlighting the focus on Physical AI.
SoftBank’s Vision for AI
SoftBank’s objective is to merge world-class technology and expertise to advance what Son describes as Artificial Super Intelligence. This concept presents AI that could surpass human intelligence by a vast margin. The company aims to leverage its robotics acquisition to drive significant advancements in both technology and society.
SoftBank’s Robotics Background
SoftBank has a history of involvement in the robotics sector, having previously invested in several relevant companies, including:
- AutoStore Holdings
- Agile Robots
- Aldebaran (majority stake acquired in 2012)
In 2014, SoftBank and Aldebaran launched the humanoid robot Pepper, which, despite its initial promise, did not meet commercial expectations.
ABB’s Strategic Decision
Morten Wierod, recent CEO of ABB, has championed the sale of the robotics unit, viewing it as a strategic move for the company. ABB stated that this sale will provide immediate value to its shareholders. The company plans to allocate the proceeds in accordance with its established capital allocation principles.
Financial Aspects of the Deal
ABB anticipates cash proceeds of approximately $5.3 billion from the transaction. The estimated separation cost associated with the deal is around $200 million, with a significant portion already included in ABB’s 2025 financial guidance.
