Tokyo: Japanese conglomerate SoftBank announced its agreement to acquire the robotics division of Swiss-based engineering firm ABB for $5.4 billion. The move is part of SoftBank's strategy to bolster its artificial intelligence (AI) robotics segment.

According to Anadolu Agency, the acquisition agreement is awaiting regulatory approval worldwide. The deal means ABB will not proceed with plans to spin off its robotics division as an independent publicly traded entity. SoftBank emphasized that this acquisition aligns with its investment focus on AI chips, AI robots, AI data centers, and energy, aiming to significantly enhance its AI robotics capabilities.

ABB's robotics business is globally acknowledged for its reliability and high performance, supported by a broad network of sales channels and customer relationships. SoftBank stated it is well-equipped to rejuvenate the robotics division's growth by investing in advanced technologies like AI.

Masayoshi Son, CEO of SoftBank, highlighted the company's ambition to lead in the field of Physical AI. By joining forces with ABB Robotics, SoftBank seeks to amalgamate world-class technology and talent to advance Artificial Super Intelligence and robotics, catalyzing a transformative evolution for humanity.

ABB expects the sale to offer immediate value to its shareholders. The company plans to allocate the proceeds from the transaction according to its established capital allocation principles, projecting approximately $5.3 billion in cash from the sale. ABB also noted that around half of the anticipated $200 million separation cost is already factored into its 2025 financial projections.