TLDR: Japanese tech giant SoftBank Group has agreed to acquire ABB’s robotics business for $5.4 billion. This strategic move is a significant step in SoftBank CEO Masayoshi Son’s vision to integrate robotics with artificial intelligence, termed ‘Physical AI.’ For Swiss engineering group ABB, the divestment allows it to refocus on its core electrification and automation businesses, providing substantial cash proceeds for future growth and acquisitions.
SoftBank Group, the Japanese investment powerhouse, announced on Wednesday, October 8, 2025, its agreement to acquire the robotics division of Swiss engineering conglomerate ABB for an enterprise value of $5.4 billion. This landmark deal is poised to reshape both companies’ strategic directions, with SoftBank deepening its commitment to artificial intelligence and robotics, and ABB streamlining its operations.
For SoftBank, led by its visionary founder and CEO Masayoshi Son, this acquisition is a pivotal step in advancing what Son refers to as the company’s ‘next frontier: Physical AI.’ Son stated, ‘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.’ This move follows SoftBank’s recent establishment of Robo HD, a new holding company for its robotics assets, and significant investments in the AI sector, including a $40 billion funding round in OpenAI and the $6.5 billion purchase of chip design company Ampere in March. The company had previously ventured into humanoid robotics with its Pepper robot a decade ago, before scaling back, but is now renewing its focus on industrial automation and logistics.
On ABB’s side, the divestment represents a strategic shift under CEO Morten Wierod, who took charge last year. The robotics division, which employs approximately 7,000 people globally and generated $2.3 billion in revenue in 2024 (7% of ABB’s total revenues) with an operational EBITA margin of 12.1%, had faced struggles with sales and profitability. ABB had initially planned to spin off and separately list the robotics business, but opted for the SoftBank sale due to the immediate cash proceeds and a ‘highly attractive multiple’ compared to a potential listing value of less than $4 billion. The transaction is expected to generate net cash proceeds of approximately $5.3 billion for ABB, after accounting for separation costs and estimated tax outflows. CEO Wierod indicated that these funds would be dedicated to developing new technology, expanding production capacity in its core focus areas of electrification and automation, and potentially funding new acquisitions. Wierod commented, ‘SoftBank will be an excellent new home for the business and its employees. 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.’
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The deal is expected to finalize by mid- to late-2026, subject to regulatory reviews. Analysts note that this acquisition provides SoftBank with exposure to a $75 billion robotics industry that is growing 8% annually, with the AI section of the market expanding even faster at about 20% per year. This acquisition underscores a broader trend of strategic realignment and capital optimization within global industrial conglomerates, as companies seek to sharpen their focus on high-growth, high-margin areas.
