ABB has announced a significant strategic shift, officially signing an agreement to divest its Robotics division to SoftBank Group. This divestiture is valued at an enterprise value of $5.375 billion, and the company has decided not to pursue its previous plan of spinning off the Robotics division as a separately listed entity. The deal is contingent upon receiving regulatory approvals and meeting standard closing conditions, with an expectation that the deal will be completed in mid-to-late 2026.
Following this agreement, ABB will restructure its reporting framework, transitioning to a system focused on three primary business areas. Starting in the fourth quarter of 2025, the Robotics division will be categorized as discontinued operations in ABB’s financial reports. Simultaneously, the Machine Automation division, which, along with ABB Robotics, currently constitutes the Robotics & Discrete Automation business area, will be integrated into the Process Automation business area. This strategic move reflects ABB’s aim to streamline operations and better align its resources.
Upon finalizing the divestment, ABB anticipates realizing a substantial non-operational pre-tax book gain estimated to be around $2.4 billion. In terms of cash proceeds, ABB expects to receive approximately $5.3 billion, after accounting for transaction-related costs. The company is also preparing for roughly $200 million in separation costs associated with this divestiture, with about half of these expenses already factored into its 2025 guidance. Additionally, ABB currently estimates that cash tax outflows related to the local business carve-out will range between $400 million and $500 million.
The ABB Robotics division has established itself as a prominent leader within the industry and is at the forefront of emerging automation trends that are crucial for the future. As previously stated, there are limited business and technological synergies between the ABB Robotics division and the other divisions within ABB, primarily due to differing demand profiles and market characteristics.
The Robotics division currently employs approximately 7,000 individuals. It is projected to generate revenues of about $2.3 billion in 2024, accounting for roughly 7% of ABB Group’s overall revenues. The division has maintained an operational EBITA margin of 12.1%, highlighting its financial efficiency.
KEY QUOTES:
“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. 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.”
Peter Voser, Chairman of ABB
“SoftBank will be an excellent new home for the business and its employees. 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.”
ABB CEO Morten Wierod
“SoftBank’s next frontier is Physical AI. 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.”
Masayoshi Son, Chairman & CEO of SoftBank Group
