• SoftBank Group announces a $5.4 billion acquisition of ABB's robotics business.
• The deal marks a strategic expansion into AI-driven robotics for SoftBank.
• ABB aims to reposition itself after struggling with profitability in its robotics division.
• The acquisition will close by mid to late 2026 and generate significant cash flows for ABB.
• ABB Robotics has been impacted by subdued demand in Asia, necessitating this strategic sale.

SoftBank Group Corp announced its agreement to acquire the robotics business of Swiss engineering group ABB for $5.4 billion, signaling a major strategy shift by CEO Masayoshi Son into robotics and artificial intelligence (AI). This move comes as SoftBank seeks to expand its investment portfolio, which already includes notable ventures like the humanoid robot Pepper, and investments in companies such as Berkshire Grey and AutoStore, according to SCMP and Reuters.

The acquisition marks ABB’s pivot away from its robotics division, which has faced falling profitability and sales challenges. Under the leadership of newly appointed CEO Morten Wierod, ABB had initially planned to spin off the robotics unit but opted for the sale to SoftBank to leverage immediate cash proceeds amidst sluggish sales in Asia's robotics market, as noted by India Times and Reuters.

ABB's robotics business employed 7,000 people and generated $2.3 billion in revenue last year, accounting for 7% of the company’s total sales. The transaction is anticipated to finalize by mid to late 2026 and is expected to produce approximately $5.3 billion in cash for ABB’s reinvestment in core areas such as electrification and automation, as stated by India Times and SCMP.

CEO Wierod emphasized the collaboration with SoftBank, stating that “ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics,” positioning the new entity to better navigate upcoming challenges and opportunities in the industry, according to Reuters.