ABB has agreed to sell its Robotics division to SoftBank Group for an enterprise value of $5.375 billion, opting not to spin it off. The transaction, expected to close in mid-to-late 2026, is subject to regulatory approvals. ABB will use the proceeds in line with its capital allocation principles. SoftBank aims to combine ABB Robotics’ technology with its AI capabilities.
Strategic Divestment
ABB will divest its Robotics division to SoftBank Group for $5.375 billion. This decision supersedes the previous intention to spin-off the robotics business as a separate, publicly listed entity. The agreement was formally announced on October 8, 2025.
Transaction Details and Rationale
The divestment is projected to close in mid-to-late 2026, pending regulatory approvals and customary closing conditions. ABB’s management has carefully evaluated SoftBank’s offer, noting it reflects the division’s long-term strengths and provides immediate value to ABB shareholders.
Future Plans for Proceeds
ABB intends to allocate the proceeds from this divestment in accordance with its established capital allocation strategy. The company’s overall strategic direction remains unchanged, emphasizing its focus on electrification and automation.
Statements from Leadership
Peter Voser, Chairman of ABB, stated that the divestment creates immediate value for shareholders. Morten Wierod, ABB CEO, believes SoftBank will be an excellent new home for the business. Masayoshi Son, Chairman & CEO of SoftBank Group Corp., envisions uniting world-class technology and talent.
Financial Impact
The divestment is expected to result in a pre-tax book gain of approximately $2.4 billion. Net cash proceeds are estimated at $5.3 billion, after transaction costs. Separation costs are projected at around $200 million. Transaction-related cash tax outflows are estimated between $400 – $500 million.
Robotics Division Overview
In 2024, ABB Robotics generated revenues of $2.3 billion, representing approximately 7 percent of the ABB Group’s total revenue. The division reported an Operational EBITA margin of 12.1 percent.
Source: BSE
