SoftBank Group to acquire ABB’s robotics unit for $5.4bn

Core Insights - SoftBank Group has agreed to acquire ABB's robotics business for an enterprise value of $5.4 billion, with the deal expected to finalize in mid-to-late 2026, pending regulatory review [1] - The robotics business employs approximately 7,000 people and generated $2.3 billion in revenue in 2024, accounting for nearly 7% of ABB's total revenue with an operational EBITA margin of 12.1% [2] - The acquisition is anticipated to enhance SoftBank's AI robotics initiatives by integrating ABB's expertise, thereby accelerating innovation towards artificial super intelligence (ASI) [3] Company Adjustments - Following the acquisition, ABB will report its robotics division as discontinued operations and will restructure its business from four to three core areas [4][5] - ABB's machine automation division will be integrated into its Process Automation business area, and the company expects a non-operational pre-tax book gain of approximately $2.4 billion from the transaction [5] - The separation costs related to the divestment are forecasted at $200 million, with cash tax outflows projected between $400 million and $500 million [6] Strategic Vision - SoftBank's chairman and CEO, Masayoshi Son, emphasized the company's focus on Physical AI, aiming to merge ASI with robotics to drive significant advancements for humanity [4] - Both ABB and SoftBank believe that their collaboration will shape the new era of AI-based robotics effectively [7]