(MENAFN) Japanese tech giant SoftBank announced on Wednesday its agreement to purchase the robotics division of Switzerland-based engineering powerhouse ABB for $5.4 billion, aiming to accelerate growth in its artificial intelligence (AI) robotics sector.

The deal, which awaits global regulatory clearance, signals ABB’s decision to halt plans for a standalone public offering of its robotics business, SoftBank confirmed in a statement.

Positioning this move within its broader strategy, SoftBank highlighted ongoing investments across AI chips, robots, data centers, and energy. The acquisition is expected to "significantly" enhance its AI robotics capabilities.

“ABB’s robotics business is a globally recognized brand, known for its reliability and high performance, supported by extensive sales channels and customer relationships,” SoftBank said.

The Japanese conglomerate believes it is "well-positioned" to revitalize the robotics segment’s expansion by injecting resources into advanced technologies such as AI.

“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,” stated SoftBank CEO Masayoshi Son.

ABB described the transaction as one that "will create immediate value to ABB shareholders," adding the proceeds will be used "in line with its well-established capital allocation principles."

The Swiss firm expects to receive approximately $5.3 billion in cash from the sale. ABB noted that about half of the $200 million expected separation costs are already accounted for in its 2025 financial outlook.

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