SoftBank Group Corp. has announced its intention to acquire the robotics unit of ABB Ltd. for approximately $5.4 billion, solidifying its renewed interest in the robotics sector. This acquisition is part of SoftBank’s strategic initiative to enhance its capabilities in artificial intelligence and robotics, following the company’s previous challenges with its humanoid robot, Pepper.
SoftBank launched Pepper into the market with great fanfare and assertively marketed the product, but by all definitions Pepper was a commercial flop. With robotics, SoftBank has staged an impressive comeback in their overall business strategy. This move is particularly significant given their returning commitment to ensuring we lead on the development of AI-powered technologies.
The announcement follows the recent appointment of Morten Wierod as ABB’s new CEO in August 2024. During his watch, the company voted to spin off ABB’s robotics division. This audacious deal was intended to free up more value for shareholders. The anticipated cost of separation from ABB is approximately $200 million. ABB has already taken half of this sum into its financial guidance for 2025.
SoftBank’s expertise and acumen in the robotics sector is deep. In 2012, it bought a controlling interest in the French firm Aldebaran, maker of futuristic humanoid robots. The newest acquisition fits right in long-term vision and SoftBank’s commitment to innovative genius in the field of innovation.
“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
With the integration of ABB’s robotics capabilities, SoftBank aims to leverage its existing technological expertise while enhancing its portfolio in AI and robotics. This is a colossal leap of faith for SoftBank. Yet it artfully dodges the landmines of the tech sector’s fast-moving political minefield.
ABB has expressed optimism regarding the spin-off, stating that it “will create immediate value to ABB shareholders” and is “in line with its well-established capital allocation principles.” The strategic separation reflects ABB’s commitment to focus on core operations while enabling its robotics unit to thrive independently under SoftBank’s leadership.
As both companies move forward with this acquisition, industry experts anticipate that it could lead to transformative innovations in robotics and AI that may reshape various sectors. Together, SoftBank and ABB Robotics are working to shift that paradigm. Together, this partnership will propel innovations that face an emerging demand squarely.