SoftBank Group has reached an agreement to acquire the robotics business of Swiss engineering group ABB in a deal valued at $5.4 billion. The acquisition, announced on Wednesday (October 8), marks the latest move by SoftBank founder and CEO Masayoshi Son to integrate robotics and artificial intelligence (AI), advancing what Son refers to as the company’s “next frontier: Physical AI.”
According to news agency Reuters, the deal is a significant development for both firms. For SoftBank, it solidifies its push into the AI sector, adding to massive investments including a $40 billion funding round in OpenAI , and the $6.5 billion purchase of chip design company Ampere in March.
SoftBank had previously scaled back its ambitions after an initial push into humanoid robotics a decade ago with its Pepper robot, the report added.
ABB shifts focus after sales struggle
The decision to sell the robotics division, which competes with rivals like Japan's Fanuc and Germany's Kuka in factory robots, is the first major move under ABB CEO Morten Wierod , who took charge last year. It follows years of struggling sales and falling profitability within the robotics unit.
ABB's robotics division employs 7,000 people and generated $2.3 billion in sales last year, accounting for 7% of ABB's total revenues. Wierod told the news agency that while the company had initially planned to spin off and separately list the robotics business, it opted for the SoftBank sale due to the immediate cash proceeds.
The transaction is expected to close in mid- to late-2026 and will generate cash proceeds of approximately $5.3 billion for ABB.
CEO Wierod stated that the money will be dedicated to developing new technology, expanding production capacity in its core focus areas of electrification and automation, and potentially funding new acquisitions.
According to news agency Reuters, the deal is a significant development for both firms. For SoftBank, it solidifies its push into the AI sector, adding to massive investments including a $40 billion funding round in OpenAI , and the $6.5 billion purchase of chip design company Ampere in March.
SoftBank had previously scaled back its ambitions after an initial push into humanoid robotics a decade ago with its Pepper robot, the report added.
ABB shifts focus after sales struggle
The decision to sell the robotics division, which competes with rivals like Japan's Fanuc and Germany's Kuka in factory robots, is the first major move under ABB CEO Morten Wierod , who took charge last year. It follows years of struggling sales and falling profitability within the robotics unit.
ABB's robotics division employs 7,000 people and generated $2.3 billion in sales last year, accounting for 7% of ABB's total revenues. Wierod told the news agency that while the company had initially planned to spin off and separately list the robotics business, it opted for the SoftBank sale due to the immediate cash proceeds.
The transaction is expected to close in mid- to late-2026 and will generate cash proceeds of approximately $5.3 billion for ABB.
CEO Wierod stated that the money will be dedicated to developing new technology, expanding production capacity in its core focus areas of electrification and automation, and potentially funding new acquisitions.
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