ABB to divest Robotics division

ABB recently announced it has signed an agreement to divest its Robotics division to Japanese investment company SoftBank Group for an enterprise value of US$5.375 billion and not pursue its earlier intention to spin off the business as a separately listed company.

“SoftBank’s offer has been carefully evaluated by the Board and Executive Committee and compared with our original intention for a spin-off. It reflects the long‍-‍term strengths of the division, and the divestment will create immediate value to ABB shareholders,” said Peter Voser, Chairman of ABB. “ABB will use the proceeds from the transaction in line with its well-established capital allocation principles. Our ambitions for ABB are unchanged and we will continue to focus on our long-term strategy, building on our leading positions in electrification and automation.”

“SoftBank will be an excellent new home for the business and its employees,” added ABB CEO Morten Wierod. “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.

“ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank’s state-of-the-art capabilities in AI, robotics and next-generation computing. This will allow the business to strengthen and expand its position as a technology leader in its field.”

“SoftBank’s next frontier is Physical AI,” said Masayoshi Son, Chairman & CEO of SoftBank Group. “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.”

As a result of the signing of the agreement ABB will adjust its reporting structure and move to three business areas. As of the fourth quarter 2025, the Robotics division will be reported as discontinued operations. At the same time, the Machine Automation division, which together with ABB Robotics currently forms the Robotics & Discrete Automation business area, will become a part of the Process Automation business area.

ABB says that there are limited business and technology synergies between the ABB Robotics business and the remainder of ABB’s businesses, with different demand and market characteristics. The ABB Robotics division has a workforce of approximately 7000. With 2024 revenues of US$2.3 billion, it represented about 7% of ABB Group revenues.

Image credit: ABB