SoftBank Group has reached an agreement to acquire ABB's robotics division for $5.4 billion, marking another step in the Japanese conglomerate's plan to merge robotics technology with artificial intelligence capabilities.

This week’s announcement represents the most recent acquisition by founder and chief executive Masayoshi Son in his effort to position SoftBank as a major force in AI development.

A decade ago, SoftBank entered the humanoid robotics market with its Pepper robot, though the company subsequently reduced its expectations in this area.

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Recent sector investments by the company include stakes in Berkshire Grey and AutoStore, while it also spearheaded a $40 billion investment round in OpenAI, the creator of ChatGPT, and purchased chip designer Ampere for $6.5 billion in March.

This transaction means ABB has reversed its initial plan to spin off and publicly list the industrial automation unit, which rivals Japan's Fanuc and Yaskawa, along with Germany's Kuka in the factory robotics market.

The move represents the first significant decision by ABB CEO Morten Wierod since assuming leadership last year, coming after years of disappointing sales performance and declining profits in the robotics sector.

 

ABB's robotics unit, with a workforce of 7,000 employees, recorded $2.3 billion in sales last year, representing seven percent of ABB's overall revenue. However, the company identified minimal synergies with its other operations, which concentrate mainly on electrification and automation solutions.

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After the deal was revealed, Switzerland's Zuercher Kantonalbank indicated it had anticipated a valuation just under $4 billion for the robotics business in the originally planned spin-off.

ABB stock prices rose two percent at market opening in Zurich following the sale news, while SoftBank shares remained relatively stable, closing down two percent for the day.

"We always said that robotics is a market with much higher volatility. And that's what we've seen over the years, both when it comes to growth, but also margins," Wierod said. "So it is a bit of a different market than, say, the rest of ABB today, which is focusing on electrification and automation."

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ABB announced that the deal is anticipated to finalize between mid-2026 and late 2026, bringing in approximately $5.3 billion in cash revenue.

According to Wierod, the funds will be allocated toward advancing new technology and expanding manufacturing capabilities in electrification and automation sectors, with the possibility of financing additional acquisitions as well. "We do have firepower to also do bigger acquisitions, so we're not excluding bigger deals," Wierod said.